Crypto market pressured by bigger trends
February 22, 2023 @ 15:22 +03:00
Bitcoin once again failed to break through the $25K level. Initial technical resistance was later supported by strong negative momentum in US equity indices, where the Nasdaq100 lost 2.5%.
On the weekly timeframe, the local situation looks like the market’s inability to move into a bullish phase, as bitcoin sells off on touching the 50- and 200-week moving averages. Without a bullish reversal in the coming days, be prepared for another pullback to the $17.5K or even $16.5K area.
Glassnode notes that bitcoin is holding up well in the face of current market dynamics and regulatory pressure and attributes this to a change in participant behaviour. The buy-the-dip pattern has re-emerged among short-term investors. However, the number of “whale” addresses with balances of 1,000 BTC or more has fallen to mid-2019 levels, indicating that the retail sector is acting as a buying driver and the whales are selling.
According to Bloomberg, Chinese authorities have tacitly supported Hong Kong’s initiative to establish a blockchain industry development centre in the metropolis. Companies previously operating in mainland China can now register in Hong Kong.
Despite rising prices, the Bank for International Settlements (BIS) estimated that the average retail investor would lose around half of their bitcoin investment between 2015 and 2022. The BIS reiterated its call for global coordination in cryptocurrency regulation, warning of the risks of increased spillover effects on the global financial system. The Litecoin blockchain has introduced a counterpart to the Ordinals protocol, which allows users to post various objects in images, text, video, and other formats.
The FxPro Analyst Team