Dear Teroxx Community,
This week we saw a crypto-market that continued to bring bullish movements to Bitcoin, while some Altcoins suffered slight price losses.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
Although Bitcoin has temporarily lost over the weekend, the signs are still positive. The downturn can accordingly be attributed to three main factors, all of which confirm the thesis that things are looking up. These are a “cleansing process” at the weekend, a renewed test of the Moving Average (MA) and a renewed test of the parabolic price trend. Bitcoin must therefore initially hold at least above $15,500 and ideally continue to defend the $15,700 mark, as it has already done in the past 24 hours, in order to maintain the upward trend.
After the U.S. elections Bitcoin could have a new advocate in a high position. In an interview with news channel ABC News, newly elected U.S. Senator Cynthia Lummis reaffirmed her support for Bitcoin (BTC), explicitly mentioning that she “hopes to bring Bitcoin into the nationwide debate. She also said: “I am the former finance minister of our state and have invested its permanent sovereign wealth fund. I looked for a good store of value and found it with Bitcoin. Our own national currency is affected by inflation, but Bitcoin is not. […]”
Deutsche Bank calls on the European Union to work on its own central bank digital currencies. Deutsche Bank predicts that Central Bank Digital Currencies (CBDCs) will replace cash in the future.
Deutsche Bank Research, the research department of Germany’s largest financial institution, has made the corresponding assessment in a new study on overcoming the corona crisis. The study, called “What We Must Do to Rebuild”, was published on November 10.
In it, Deutsche Bank concludes that the corona virus has accelerated the “revolution of digital money”. In the long term, according to the researchers, this revolution will lead to the replacement of cash by central bank digital currencies such as the digital yuan from China or the Swedish e-krone.
Technical term of the week
Lending: For that lend the own crypto currencies, one gets in return daily money interest rates of a few per cent (counted on one year). The height of the percentages is different from platform to platform and depends on the demand of the lent crypto currency. After the negotiated running time one gets its Coins including the earned interest, in form of the respective crypto currency, back.
We continued to see bullish movements in Bitcoin. At the beginning of the week, we saw a “sale” of ~8%. This sale tested the market’s support at $15,000, and after holding it, the dip in the market was used to immediately start a positive trend. This sequence of trends resulted in Bitcoin establishing a new yearly high. At $16,500, the market faced resistance and again experienced smaller sales. These also had a very purifying effect on the market and held the bullish trend channels and indicators. After a quiet and rather bearish weekend (Altcoins faced larger sell-offs) Bitcoin climbed quickly above $16,000 with positive futures opening in the world markets and continues to keep the omens bullish. Total market capitalization increased by ~1.9%, with a large part of that increase falling on Bitcoin, as no such bullish movements are currently seen in the Altcoins.
Bullish outlook: Covid-19 loses the horror for the financial markets with the upcoming positive development of a vaccine. If these should run positively over the week, Bitcoin could set new yearly high points and tackle the $17,000 mark. Currently, extreme greed seems to be dominating the market, which means that the mood could remain positive if key support levels are maintained.
Bearish outlook: Loss of positive trend channels and loss of support at $15,500 and $15,000 could lead to larger sales and liquidations.