The Crypto Week in Summary
In the second week of stabilization, crypto markets went sideways and decoupled from rising stocks. Paxful partnered to bring Bitcoin education to Argentina while Ringo Starr launched his NFT collection and a new mining venture in Texas was announced.
At a glance...
- Crypto companies converge at Davos
- US exchanges achieve major milestones
- Vitalik proposes digital I.D. solution
- GameStop moves a step closer to NFTs
- Terra governance forks to LUNC, burns 1.3B UST
Top Market Trends:
- The crypto industry showed a marked presence at this year's WEF annual meeting in Davos, filling the entrance promenade with crypto-based pavilions and stalls.
- FTX.us will offer stock trading with a USDC funding option and bought 7% of Robinhood, while Coinbase became the first crypto exchange to be listed on the Fortune 500.
- Vitalik Buterin proposed the creation of Soulbound tokens, which would be non-transferable NFTs for use as on-chain resumes, credit scores, and educational credentials.
- Video game store GameStop launched its beta version of a self custodial crypto wallet in preparation for their upcoming NFT marketplace.
Movers and Shakers
Bitcoin (BTC) decoupled from rising equities this week, taking altcoins with it. Continued bearish pressure intensified as the week progressed. Despite massive FUD, BTC managed to stay near the critical $28k support level for the second week.
- BTC’s 14-day Relative Strength Index (RSI) is currently hovering around 45, which is considered a bull condition. This could indicate to bears that BTC price movement may have reached the end of downside momentum.
- Bitcoin’s choppy movements this week netted a 3.9% loss, with selling pressure swinging up to end the week.
2-hour chart analysis
Starting on the 2-hour chart, Bitcoin appears to be trading in a descending triangle, which would signal in this general downtrend a potentially bearish output. Bitcoin is currently trading below the 100MA, which could be a short-term target.
Weekly chart analysis
On the weekly chart, we can see how the current trading range is critical for Bitcoin. Indeed, in January 2021, a rebound from this level kickstarted another all-time-high. Since then, this level has been retested multiple times. However, this time the sell pressure could lead to a potential breakdown below this key support level as most indicators are bearish. It is nonetheless important to notice that BTC is still outperforming altcoins.
Altcoins on the Move
Not much movement for alts this week, with most coins posting minimal gains if any and just a few outliers including Aave (AAVE) and Monero (XMR). The now imminent transition from LUNA to LUNA Classic sparked a lot of conversations, and the Ethereum PoS Beacon chain experienced a reorganization causing ETH to drop sharply.
- Ethereum (ETH) failed to consolidate above the $2000 mark and experienced heavy sell pressure on Thursday and Friday. The Ethereum Beacon chain experienced a 7-block deep reorganization in part due to its upcoming Merge transition from PoW to PoS. News of the event increased the sell pressure on the already unstable asset. The price fell sharply and ETH is currently trading above the $1,800 resistance line created in Q2 2021.
- The Terra community launched the newly forked Terra Blockchain 2.0 with the support of Bybit, Kucoin, and BitFinex, and a proposal to burn 1.3 billion UST tokens (11%) was overwhelmingly approved by core developers.
Turn TradingView alerts into executable signals with Quadency’s TradingView bot!
- Texas Pacific Land Corp announced a Bitcoin mining venture that would enable 2.0 Exahash of mining capacity.
- The Beatles’ Ringo Starr launched the Ringo Starr NFT Collection, including 4 originals featuring animation and one his custom drum composition.
- Paxful partnered with Built with Bitcoin Foundation and NGO Bitcoin Argentina to create a Bitcoin education program in 40 Agentianan secondary schools.
- Ledger hardware wallet company is expanding into self custody by launching its Ledger Connect web wallet on Apple’s Safari browser.
Spotlight on: Loopring (LPR)
- LPR was up over 20% in the last 7 days, helped by GameStop unveiling their self-custodial web wallet in anticipation of the upcoming NFT marketplace.
- The bulls took control this week after a 50% drop from its ATH in the crypto crash that began two weeks ago.
Pro tip: Grid Trader
Quadency’s popular Grid Trader bot strategy is designed to make the most out of the volatile, sideways markets we are experiencing in crypto right today. Grid Trader automates multiple buy and sell limit orders along grid lines around the asset’s price. When the price fluctuates up and down within the grid, profit can potentially be realized when each buy-low, sell-high cycle completes.
We Looked Into: El Salvador’s Financial Inclusion Summit
El Salvador organized a financial inclusion summit. It was attended by central bankers and financial regulators from 44 countries - with #Bitcoin as a major focal point.— Quadency (@quadency) May 25, 2022
Here are our Top 10 Takeaways.
- Trade smarter using automations with Quadency
- Guide to Support and Resistance
- Discover QUAD tokens and start staking!
Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.
Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.