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.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
The Chinese monopoly position in Bitcoin mining will be dissolved sooner or later, as more and more chip manufacturers enter the mining market and other countries also offer cheap electricity, according to crypto expert Jameson Lopp. Even though China currently has a clear monopoly position, Lopp does not see this as a major threat to Bitcoin. “Even if the Chinese government were to put the country’s entire mining capacity under its control, the Bitcoin network would be too large by now to allow an unnoticed takeover.”
The US Securities and Exchange Commission (SEC) has confirmed Commissioner Hester Peirce for a second term, which means that she will now remain in this position until 2025. This is good news for the crypto industry, which had given Peirce the affectionate nickname “Crypto-Mom” during her first term of office, as it had always been very differentiated and benevolent about crypto currencies. In February, Peirce had presented a possible bill that would provide a “safe haven” for crypto-currencies. According to this, developers could initially work on corresponding projects for three years without having to fear legal consequences from the SEC.
The block chain and crypto data platform LongHash announced in a tweet on August 8 that the block chain sector in China has grown considerably despite the pandemic this year. It was said that between January and July more than 10,000 block chain companies had been established.
Technical term of the week
DeFi Token: These tokens represent a form of decentralised finance. With these tokens it is possible (without third parties) to make loans or other financial products based on the Blockchain accessible to the customer.
Crypto Market
After the crypto market saw a larger sell-off last week, this dip was quickly recovered after a two-day sideways movement. After testing the $11,000 level several times and confirming support, the market started a positive move and settled above the $11,500 level. Many support lines were recaptured and the positive market sentiment was maintained. Towards the weekend, volatility in Bitcoin dropped, while DeFi tokens experienced hype. With positive confirmation from the world markets futures, Bitcoin was also able to pick up and re-test the $12,000 mark before a “flash dump” showed how strong this resistance zone currently is. Market capitalization rose by ~6%, supporting the positive weekly impression.
Bullish outlook: Bitcoin should be able to break through the resistance at $12,000 this week. Should this happen, it would be the last major hurdle before the market could tackle $13,500. For this to happen, the market needs high volume and only small sales, as well as generally positive global markets.
Bearish outlook: Should the market see a sell off after testing the $12,000 mark several times, the support lines above $11,000 should be able to catch the market in order to remain positive.
