Dear Teroxx Community,
This week we saw a crypto market that stabilized Bitcoin. After the “bull-run” and the subsequent correction, the market was able to establish higher support levels.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
Research into a common central bank digital currency is so far a novelty. The Aber project, which was launched jointly by the United Arab Emirates (UAE) and Saudi Arabia in 2019, aimed to research the practical use of a digital currency in order to “gain new insights into central bank digital currencies and block-chain technology”. “We chose the name But because it means ‘crossing borders’ in Arabic, which reflects both the cross-border/international nature of the project and our hope that we will ‘cross borders’ in terms of technology.
RippleNet General Manager Asheesh Birla praised Bitcoin (BTC) as a “very innovative alternative to gold”, but said that the year 2020 proved that there is still enough room for many other crypto currencies. “I think the days when everyone thought that only Bitcoin would prevail are numbered. I think it is pretty clear that there will be many digital currencies and that many traditional financial products will be tokenized as digital currencies. I think that traditional venture capitalists are not as interested as they are in 2017,” he says. He then adds: “But nevertheless, I find the industry’s innovative power is currently stronger than ever.
Mark Yusko sees long-term Bitcoin HODLers as having a clear advantage over short-term speculators. Intention and time horizon are the two decisive parameters that determine whether investors are successful or not in their investment in Bitcoin (BTC). Yusko, who is Managing Director of Morgan Creek Capital Management, said: “When the long-established are threatened, they try to lobby governments to slow down the adoption of new technologies through strict regulation. And emphasized that this slowdown cannot and will not stop innovation, however.
Technical term of the week
Bollinger Bands: They consist of an upper and a lower band on each side of a Simple Moving Average (SMA). Each band indicates two standard deviations from the market’s SMA. They can be used to highlight areas of support and resistance. They are known as price indicators.
Crypto Market
Last week brought some “extremes” to the market. While the beginning and middle of the week can be considered very bullish, the second half of the week saw a major and healthy correction in the market.
Bitcoin was able to set a new year high of ~$19,500 last week. The market formed a “double top” at this level (testing the same price twice) and was subsequently exposed to profit taking. The price fell ~16% from the year high within a few days, only to rise again over the weekend by $2000 from the local low.
The “healthy” correction stabilized the market above $16,000 and established support levels. Despite the correction, we did not see any negative change in market capitalization, which continues to keep the markets bullish.
Bulish outlook: If the market can set a longterm support above $17.000 huge investions could easily pump the market sooner or later to new highs.
Bearish Outlook: Huge profit takings and “out of steam” could slow down the market. Still in a bullish longterm view the market could see some downtrends to restest $16.500 – $16.000.
