Dear Teroxx Community,

This week we saw a crypto market which once again showed positive changes under high volatility in most crypto currencies.

Weekly overview

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

Latest crypto news

Thanks to a strong day-end closing, Bitcoin (BTC) was able to climb up to the 12,000 US dollar mark on Saturday. Expert Michael van de Poppe emphasizes the importance of the resistance zone, which makes it all the more important to overcome it: “The zone between 11,500 – 11,800 US dollars is a traditionally important area, as it had already acted as a strong resistance in the summer of 2019 and also formed resistance at the peak of the crypto-hype in December 2017”.
These levels could not be maintained subsequently and there was a “small” sell-off. However, the crypto currency market seems to be on a very good path at the moment.

DeFi market breaks the record high of USD 4 billion in invested assets for the first time. DeFi products in this case are any financial products, digital currencies and smart contracts based on blockchain technology. One example is the granting of loans without the involvement of a bank, as is usually the case. The new figures show that more than $4 billion is now invested in corresponding smart contracts and decentralized apps (DApps) based on the Ethereum blockchain.

A Bloomberg article states that Americans would rather prefer more speculative assets such as stocks, gold and Bitcoin (BTC) than the US dollar. Due to the COVID 19 lockdown, the savings rate among private individuals in the USA is at an all-time high. However, the yield on savings accounts offered by financial institutions is close to zero. At the same time, assets such as Bitcoin, stocks and gold have all posted double-digit gains since March. This makes them an attractive option for investors.

Technical term of the week

Trend line: The trend line indicates a trend, i.e. a certain price development. If a price rises, this development would be called a trend. The trend line would therefore be a connection of the previous prices and be displayed as a line in the chart. If there are two trend lines above or below each other, it is a so-called trend channel.

Crypto Market

This week we saw a week that was positive for most crypto currencies in the crypto market.

By conquering the perennial negative resist and trend line, Bitcoin was able to experience an upswing and thus most of the Altcoins were able to follow suit. After the market formed a short term support at $10,500, the positive market sentiment bought back any small dip and the market climbed to $11,000 within a few days. From this level, a weekend of high volume and volatility allowed prices to continue to bullish, so that testing the $12,000 mark is the local high and the year high. As a result, many resistances were broken and the market was set into a very positive trend. The following correction was a sign that many positions were closed and there was no ambition of buyers to hold these levels around $12,000. We saw a very positive week where the potential of the market was evident, but a new resistance was formed. Total market capitalization rose ~11%, indicating a widespread rise in the crypto currencies.

Bullish outlook: The market should settle above $11,000. If this is successful, another “FOMO” (Fear of missing out) market with further local highs seems possible at any time. Should the market subsequently break through the $12,000 level, supported by positive world markets, the next increase to ~$14,000 could follow.

Bearish outlook: A negative market that loses support at $10,500 could quickly push the market towards ~$9800. Holding the five digit mark seems to be psychologically very valuable right now.