Dear Teroxx Community,
This week we saw a digital asset market that first saw local resistance build and then larger sell-offs.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
Bitcoin lost $8,000 on September 7. The most volatile day for Bitcoin since the mining crackdown in China. Bitcoin (BTC) plummeted sharply on September 7. The BTC price fell below $43,000, making it the most volatile day of the year so far. Trader and analyst Scott Melker, known as “The Wolf of All Streets,” attributed this to high-volume traders.
“Of course, the whales (big investors) are selling Bitcoin on the day El Salvador makes it legal tender,” he said.
“There were also very large volumes in that sale.” So profit-taking is primarily behind the sale.
With targeted geostrategic partnerships, GSBN has created a competing blockchain platform to IBM and Maersk’s TradeLens network. The Global Shipping Business Network (GSBN) has developed a new blockchain platform that could capture up to one-third of the shipping containers shipped worldwide in the future.
The GSBN was launched in October 2020 by eight major container shipping companies to use blockchain technology to digitize international freight traffic. First and foremost, the focus is on improving the recording of logistics data and simplifying bureaucratic processes.
According to the Hong Kong-based consortium, GSBN members handle “one in three containers shipped around the world.” So once the new platform is used on a large scale, a large part of global shipping logistics could function via blockchain.
Cardano has completed its Alonzo hard fork to introduce Plutus-powered smart contract scripts. Despite celebrating the milestone, Cardano notes that it is still “early days for the project,” asserting that now is when “the mission truly begins” in a blog post published on the same day:
Cardano has announced the completion of its Alonzo hard fork, ushering in its long-awaited smart contract functionality.
“This is where the mission truly begins as we – the whole community – start delivering on the vision we have all been working towards for so long. Building a decentralized system that extends economic identity and opportunity to everyone, everywhere.”
Technical term of the week
Flashcrash: A strong price slide in assets, which lasts only a few minutes / hours and can lead to high losses without appropriate risk management.
Crypto Market
Bitcoin was able to hold the $50,000 level and further set new local highs at ~$52,800. These levels seemed to form the local high for most market participants and sell-offs set in. These initially kept the market above the $50,000 mark, but this psychologically important mark was also lost and a flash crash set in. This briefly pushed the price down to ~$43,000 before a support formation and consolidation set in. Currently, the market is struggling with the ~$45,000 line and remains in consolidation mode without any significant breakouts after the “crash”. Some altcoins showed strong counter-movements, but these were also mostly acknowledged with sell-offs again. The market capitalization fell by ~13% this week.
Bullish outlook: Support establish around current levels would provide fundamental strong support and favor bounces.
Bearish Outlook: Further selling would push the market back into the regions around $42,000.
