The evolution of the market during the past week was negative and BTC is now trading below the important level of USD 38,000. What can we expect next? We’ll break this down later in the article but first let’s go over the main industry news.
News is one of the factors that impact cryptocurrency price. It is important for every trader to stay up-to-date with the latest developments in the sphere. We’ve hand-picked some of the most interesting ones for you:
Manchester City to build Etihad Stadium in the Metaverse
Premier League champions Manchester City and their new partner Sony have begun building a virtual replica of the Etihad Stadium which will be the team’s central hub in the Metaverse.
Etihad Stadium is the home of Manchester City, England’s top soccer team at the moment. The team announced on Feb. 18 that it had signed a three-year agreement with Sony, which will provide virtual reality experts to use image analysis and skeletal-tracking technology from subsidiary Hawk-Eye.
Source : https://cointelegraph.com/news/manchester-city-to-build-etihad-stadium-in-the-metaverse
Crypto winter 2022: Here’s what crypto industry veterans expect
As the total cryptocurrency market capitalization dipped below USD2 trillion last week, major crypto executives have been increasingly talking about a potential continuous bear market or a “crypto winter.”
Contrary to the expectations of many in the crypto market, Bitcoin (BTC) failed to surge above USD 68,000 in 2021 and continued dropping below USD 40,000 in early 2022, causing significant losses for big crypto investors such as MicroStrategy.
Source : https://cointelegraph.com/news/crypto-winter-2022-here-s-what-crypto-industry-veterans-expect
Pro-Bitcoin president of El Salvador to offer citizenship for foreign investors
Salvadoran President Nayib Bukele wants to offer citizenship to those who invest in the small Central American nation.
President Bukele took to Twitter to inform the crypto community on Sunday that he was sending a list of 52 legal reforms to Congress. Among the most notable proposals, Bukele called for the removal of red tape, reducing bureaucracy, creating tax incentives and, most importantly, offering citizenships to foreigners looking to invest in the nation.
Source : https://cointelegraph.com/news/pro-bitcoin-president-of-el-salvador-to-offer-citizenship-for-foreign-investors
As I said in the introduction, the past week has been rather negative for the crypto market and in particular for Bitcoin.
BTC Trades now under the USD 38,000 threshold, which was supposed to be a support.
If we analyze the chart on a weekly basis, the high point reached in the form of an inverted hammer the week of February 7 does not bode well. The past week has confirmed this and we should now expect a test of the USD 30,000.
If this level breaks, then we will enter a long term downtrend that could last for a while. How long? Nobody can say but I am talking about something similar to what preceded the previous bull run.
One thing is certain at the time of writing, the USD 30,000 level will prove to be decisive.
You know the correlation in the crypto market, when Bitcoin sneezes, the whole market catches a cold. So Ethereum is also in turmoil.
The week of February 7 also acted as a pullback, retesting the bearish average before falling a little further. For the moment ETH is heading towards the moving average for a retest. The volume is decreasing while the price is increasing, caution!
If the USD 30,000 were to break on Bitcoin, there is no doubt that the USD 2000 area would not hold on ETH either.
From an indicator point of view, they are negative on a daily time frame and positive on 4h timeframe.
Altcoin of the week : LIT
While screening the market, I came across LITUSDT. Be careful though, the overall trend of this crypto is following the market trend of the last few months to the letter, so don’t rush it.
Currently LIT is trading around USD 1.36, we will only buy if it gets back above USD 2.00, not before. This is more about setting an alert rather than opening your Binance account.
Remember last week’s XMR analysis? Was it a warning sign? Well, the market certainly thinks so.
There is a lot of uncertainty in the market right now and you can quickly lose your footing if you don’t make the right decisions.
Here are some useful tips:
1) Base yourself on facts, even if we suspect that a break of the USD 30,000 could occur, as long as it is not acted it is only supposition.
2) Stick to what you say, if you have opened a short term trading position, don’t let it become long term and hold on the whole bear market! Believe me, it hurts!
3) See you next week for another market review!
Have a great week everyone!