Dear Teroxx Community,
This week we saw setbacks in the market, driven on the one hand by bearish financial markets and on the other hand by sell-offs in the digital asset market, due to the high price levels of the last weeks.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
The “FOMO” of the 2017 and 2019 uptrends provides an indication that investors have not yet panic-bought.
As blockchain data service Whalemap shows, the number of transactions worth $5-7 million suggests that the recent record high was not yet the tip of the iceberg. For example, there were significantly more purchases of this size during the upward trends of 2017 and 2019.
When the number of transactions peaks at this level, it is usually a sign that an uptrend is coming to an end.
However, according to Whalemap, the number of purchases in this range is far behind the peaks of past uptrends, which probably means that the current record run still has room to run.
Swiss investment bank Credit Suisse wants to support German bitcoin mining operator Northern Data in its IPO. Germany-based Northern Data plans to raise up to $500 million in the IPO, Bloomberg reported Feb. 22. According to the report, the company is considering selling new shares at the end of 2021 to increase the number of shareholders and boost Northern Data’s global profile. Northern Data shareholders include investors such as Galaxy Digital founder Mike Novogratz, as well as companies such as investment firm Cryptology Asset Group and EOS developer Block.one.
A 1 percent allocation to bitcoin would provide “efficiencies” for many portfolios. As Bloomberg reports, JPM analysts Joyce Chang and Amy Ho explain to this effect in a circular to the bank’s clients:
“In a multi-dimensional portfolio, investors should allocate up to 1% of the portfolio’s largest to cryptocurrencies for efficiency benefits.”
In praising Bitcoin, the big bank is joining a tenor led by major investors such as Paul Tudor Jones, Stan Druckenmiller, Tesla and MicroStrategy. Even New York-based BNY Mellon, the oldest bank in the U.S., plans to offer custody services for cryptocurrencies in the future.
Technical term of the week
Fibonacci-Retracement: Is a method to find potential resistance and support zones of an underlying asset. It is based on the idea that a predetermined portion of a move from a price will retrace. After that, the price will continue in the “real” direction. Often a correction corrects a Fibonacci percentage of a previous wave. From experience, the most common retracement levels are 38.2%, 50% and 61.8%.
Bulish outlook: $50,000 could be an important zone psychologically. A sustained move above this level could draw more buyers into the market, creating a bounce.
Bearish Outlook: A loss of the $44,000 level and a downtrend towards $40,000 would slowly make the market bearish.