Technical Analysis

Maybe the short-time correction for Crypto is over


Market picture

The
cryptocurrency market has added 0.75% in the last 24 hours to 976bn, with
Bitcoin rising by the same amount, testing $21K again.

The former
cryptocurrency has corrected to 76.4% of the rally from December lows to this
week’s highs. It cannot be ruled out that this is the end of the shakeout. Such
shallow pullbacks are normal for strong bull markets in stocks or other assets.

Confirmation
that Bitcoin, with the crypto market, is once again bullish will be a recent
high of $21.6K, clearing the way for $24.6K 161.8% Fibonacci, where the
200-week moving average also passes.

News background

Crypto
lending platform Genesis Global Capital, part of Digital Currency Group (DCG),
is preparing to declare bankruptcy. According to knowledgeable sources at
Bloomberg, the company will do so in the coming days, with Genesis’ debt levels
reaching $3bn.

Genesis’
problems stemmed from the default of hedge fund Three Arrows Capital in June,
with the collapse of FTX exacerbating the situation. DCG is considering selling
its subsidiary CoinDesk.

The US
Department of Justice has arrested Bitzlato cryptocurrency exchange platform
founder Anatoly Legkodymov on charges of laundering $700M related to the closed
darknet marketplace Hydra.

Banking
group National Australia Bank (NAB) has announced plans to launch an AUDN
stablecoin, pegged to and fully backed by the Australian dollar. AUDN will
launch based on Ethereum and Algorand in the middle of the year.

In
cooperation with fintech company Monei, Spain’s central bank will test EURM, a
EUR-linked stablecoin, over the next 6-12 months.

This article was written by FxPro’s Senior Market
Analyst Alex Kuptsikevich.

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