Dear Teroxx Community,

This week we saw a crypto market that was able to establish further positive support zones and continue to establish itself in bullish territory, while Bitcoin took a “break”.

Weekly overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.

Latest crypto news

The average 7-day hashrate of Bitcoin increases to over 129 EH/s. The price continues to meet resistance at the USD 12,000 mark. The hashrate is an estimate of the computing power that Miners spend on processing Bitcoin (BTC) transactions. A higher average means that Miners are more likely to see a return on investment. In general, there is therefore a strong correlation between hashrate and price.Bitcoin twice rose above $12,000 in August and then fell back into the $11,000 range.

Despite the current hype about decentralized financial services (DeFi), there is still enough room for traditional, centralized crypto exchanges. At least Changpeng Zhao, the managing director of the major trading platform Binance, is convinced of this: “I think DeFi is a very innovative area and I really like it. Initially, the people at DeFi were mainly thinking about crypto saving and crypto lending, but now they are adding that it automatically makes their money available and thus also provides liquidity. The higher the liquidity, the better people can trade.

The California Senate’s Parliamentary Banking Committee has passed a bill to clarify the legal classification of digital currencies. The “Assembly Bill 2150”, which could possibly even have an impact on how crypto-currencies will be treated at the higher federal level in the future, was passed unanimously by the parliamentary committee. Accordingly, the study is intended to evaluate the extent to which it can be beneficial for investor protection and the federal state if digital currencies are considered as securities for a limited time. In addition, the minimum requirements for this exemption should be defined. In addition, the economic supervisory authority is charged with making proposals for a legal framework.

Technical term of the week

Crypto Futures: A future is a forward contract with which commodities or financial products are traded, i.e. sold or disposed of, at a predetermined price on a specific future date. Forward contracts are used on the one hand to hedge against price fluctuations. Due to their design, futures are also very suitable for speculation. Due to the leverage effect, strong profits are possible – but above all losses, which can also massively exceed the input value.

Crypto Market

Most of the crypto market has been “quiet” for the last week. Some old coins in the DeFi area were able to take advantage of the positive sentiment in the market and create short-term “hypes”. On a weekly basis the market capitalization increased by ~3.5%. After Bitcoin tested the $12,000 level, the market saw a small sell-off down to ~$11350. Subsequently, the price recovered towards the weekend and was around $11,800. Volatility declined bit by bit and $12,000 seems to be a strong resistance for the market at the moment. Chart technically, we have thus been at the “same” levels since the beginning of August and have not been able to establish any new highs. As a result, altcoins have performed quite well, as attention has shifted from Bitcoin to these same altcoins and the Bitcoin dominance is decreasing accordingly.

Bullish outlook: Resistance at $12,000 is the most important market leading indicator. A permanent breakthrough of the resistance could boost the market and provide a boost.

Bearish Outlook: Testing and losing the $12,000 mark several times could push the market back towards $11,500-$11,000. Negative stock prices in tech stocks could also have a negative impact.