Dear Teroxx Community,

This week we saw a digital asset market that experienced a major correction.

Weekly overview

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


Latest crypto news

A power outage in China and a rumor from the US that regulators want to crack down on money laundering with cryptocurrencies have triggered the biggest bitcoin downturn in quite some time. After BTC/USD had already slipped below the $60,000 support level earlier this weekend, the price initially remained stable before taking a downward turn in one fell swoop, liquidating a total of long positions worth nearly $10 billion.
The crash of 7,000 US dollars in just one hour is the strongest price movement ever since the sudden jump in February, when Bitcoin was able to climb to 58,000 US dollars for the first time. However, the market stabilized immediately, which means that this dip does not yet represent a trend reversal.

Scaramucci, a former U.S. government official said, “I’m quite surprised that this hasn’t set off alarm bells at banks, as it did at Microsoft in 1995 after Netscape went public,” as Scaramucci explained to that effect in an interview with CNBC on Friday. The crypto exchange’s close ramifications with Bitcoin (BTC) alone should be cause for concern for banks, given the cryptocurrency’s current strength. With this, the financial expert alludes to the fact that Coinbase’s IPO has a similar scope for the crypto industry as the Netscape IPO had for the Internet industry back then. Michael Novogratz, the CEO of Galaxy Digital, also recently made this comparison and proclaimed it a milestone for crypto.
This shows that the Coinbase listing on Nasdaq is much more important for the industry than it seems at first glance.

North America will soon get more crypto investment products in the form of three new ETH index funds. While the US has yet to get around to allowing crypto ETFs, a veritable gold rush for cryptocurrency index funds has now broken out among its northern neighbors in Canada. Canadian regulators have now approved three more exchange-traded funds (ETFs) for Ethereum (ETH) in just one day.
The first approved ETF had a volume of more than $1 billion within a few days, highlighting the high demand.

Technical term of the week

Liquidations: In leverage trading, depending on the selected risk settings, there is a liquidation price of the position (or account) if no suitable stop losses are used. These liquidations then either set the invested amount to $0 (isolated position) or the entire account to $0 (cross position). Therefore, a suitable risk assessment is indispensable for each position!

Crypto Market

Last week we saw market moves that failed to keep bitcoin above the $60,000 mark. Thus, the market lost a bit of momentum after the successful Coinbase listing on the American exchanges. Due to the large price increases, a correction was overdue as there was major profit taking. Due to the loss of some important support zones, which kept the market close to the $60,000 mark, a price slide followed, but it was bought back very quickly. Thus, two key support zones were established (~$51,000 & ~$53,500) which continues to keep the market in positive cycle. Corrections are elementary important for subsequent price increases, as only in this way new and strong support zones are established and “fresh” capital flows into the market.Bitcoin is now hovering around the ~$57,000 level and encountering the first major resistance at ~$58,500 on the way back to last week’s levels. Through this dip, the market cap saw little change on a weekly basis.

BTC/USDT, 60

Bullish Outlook: If the support zones around ~$55,000 hold and new volume flows into the market, resistance at $60,000 could be targeted and breached again.

Bearish Outlook: A loss of support at ~$53,500 and a loss of the $50,000 level could change the dynamics of the market and create negative moves.