Dear Teroxx Community,

This week we saw a digital asset market that continues to search for a new trend and suffered further 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

The fact that Bitcoin is a multi-faceted financial product that offers added value that goes far beyond speculative trading is now testified by a crypto user from Nigeria.
Bernard Parah, the CEO of Bitnob, explained in a related Twitter thread on Thursday the benefits the market-leading cryptocurrency can have, especially in developing African countries: “By growing up in Nigeria, I see #Bitcoin from a very different perspective than people from the US, for example.”
“We can’t pay more than $100 with our cards in foreign online stores. So we can’t even spend our own money. If we want to buy a PS5 abroad, we can’t, because of the restrictions in place,” as Parah exemplifies.
This makes it clear how complex the asset class has become and how it is a welcome alternative, especially in countries with restrictions or unstable FIAT currencies.

Blockchain data shows that crypto investors are using this week’s Bitcoin (BTC) crash as a buying opportunity, with retail investors leading the way by purchasing an additional 12,000 BTC in recent days.
Crypto analyst William Clemente III draws attention to this reading using data from crypto market research firm Glassnode, which shows that the number of wallets holding between 0.01-0.1 BTC has increased during the downturn. So the “plebs,” or small investors, seem to see an opportunity in the falling price.

In its monthly report for April, the German Bundesbank highlights the use of blockchain technologies for programmable money. As the Bundesbank points out, work is currently intensifying worldwide on the development of digital central bank money (CBDC) and warns that “a widespread substitution of commercial bank money by CBDC could have implications for monetary policy and financial stability and lead to a loss of importance of banks as intermediaries in the financial system.”
In its analysis of the digital transformation currently underway in payments, the Bundesbank highlights the impact of digital ledger technology (DLT), which enables “automatic dovetailing of payments with other processes” and falling transaction costs.
For digital money, the Bundesbank sees a number of requirements that would have to be met for beneficial use. In addition to universality for the broadest possible use as a means of payment, efficiency and security are also cited as important factors.

Technical term of the week

Price jump: Describes the fact that a price quickly deviates from a certain level (usually short and strong breakouts) and subsequently settles. This provides an opportunity for scalping.

Crypto Market

Last week we saw market moves that continued to fail to lift bitcoin out of negative swings. The market experienced further selling and formed a deep support at ~$30,000. From these levels, the market saw a bounce but could not make positive bounces and experienced another setback with support formation at ~$31,000. This means that Bitcoin and many other digital assets suffered more than 50% price loss from the high point. During this time, proper risk management is essential to minimize the drawdown in such market phases. Currently, the price has stabilized in most assets and first uptrends are visible. This would slowly make the market bullish again after weeks of consolidation. However, utmost caution is still advised, as further sell-offs could occur at any time.

BTC/USDT, 60

Bullish outlook: $42,000 is a resistance that would make the market bullish if this mark should be broken in the long term!

Bearish outlook: $35,000-$33,000 should serve as support for the market. If these levels fail to hold, another downturn down to $30,000 would be likely. This would make the market bearish in the long term.