Monday, January 24, 2022

First Mover Asia: Bitcoin Stabilizes Near $ 43,000 As Layer 1 Tokens Gain Attention

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Hello. Here’s what’s going on:

Market movements: Bitcoin stabilized at nearly $ 43,000 after Wednesday’s sale, as traders’ attention turned to Layer 1 tokens.

Technician’s opinion: Oversold signals remain intact for bitcoin, although the rise is limited.

Watch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analytics.

Prices

Bitcoin (BTC): $ 43,073 -1.09%

Ether (ETH): $ 3,407 -4.097%

Markets

S&P 500: 4,696 at 0.096%

DJIA: 36,236 -0.47%

Nasdaq: 15,080 -0.13%

Gold: $ 1,790 -1.09%

The market is moving

Bitcoin stabilized around $ 43,000 after falling to nearly $ 42,000, while a few Layer 1 tokens such as Harmony (ONE), Phantom (FTOM), Cosmos (ATOM), and NEAR ( NEAR) quickly turned green despite Wednesday’s massive sell-off. .

At the time of writing, bitcoin, the oldest cryptocurrency, was trading at $ 43,073, down 1.09% in the past 24 hours, according to CoinDesk data.

Data from TradingView and Binance shows that most of the dumping events took place on Wednesday during trading hours in the United States. Notably, the price of the No.1 cryptocurrency only took a small hit during Asian hours on Thursday.

Hourly chart of the BTC / USTD pair on Binance.  (Source: TradingView, Binance)

Babel, a Hong Kong-based crypto lender, wrote in its Jan.5 newsletter that bitcoin failed to follow the ‘Santa Rally’ of US stocks in the last week of 2021, potentially because of the ban on crypto trading in China. December 31 was the deadline for many Chinese crypto exchanges to stop offering crypto trading services to users in mainland China.

The slight sell-off during Asian hours, a trading session known as bearish for crypto prices in 2021, could indicate that the crypto selling pressure linked to China maybe finished.

Meanwhile, crypto Twitter shows that many traders have turned their attention to trading in alternative cryptocurrencies (altcoin), with a few Layer 1 tokens seeing gains despite a wider crypto sell-off.

According to Messari’s asset filter, Harmony, Cosmos, Phantom, and NEAR – all tokens associated with smart contract platforms, are among the biggest winners on Thursday. Harmony (ONE) prices, for example, were up 10.7% at the time of writing.

Crypto traders continued to bet on the success of Layer 1 tokens because solana, Earth and avalanche last year impressive price returns were recorded. Layer 1 blockchains have been one of the crypto industry’s biggest narratives, especially over the past few years. Their success came as Ethereum, the n ° 1 blockchain by the total value of the tokens locked in the smart contract, has become too crowded, leading to an increase in its transaction fees.

The technician’s point of view

Bitcoin Stabilizes After Sell, Resistance Near $ 45,000- $ 50,000

Bitcoin (BTC) fell below initial support at $ 45,000 on Wednesday, but then stabilized around $ 42,000, which is near the low of the December 5 crash. The oversold signals remain intact, suggesting that selling pressure may ease.

Given the series of lower prices since November, support ranges and oversold readings are considered counter trend. This reduces the likelihood of a significant buying force until the downtrend is reversed.

There is strong resistance ahead which could limit short term bullish moves. For example, the price momentum turned negative on the monthly chart, indicating a possible change in trend from bullish to bearish.

Additionally, bitcoin remains stuck below key moving averages and is around 35% below its all-time high of around $ 69,000.

The cryptocurrency has fallen by around 8% over the past week as buyers failed to break above $ 50,000.

Important events

2 p.m. HKT / SINGT (6 a.m. UTC): Germany trade balance (Nov. MoM)

2 p.m. HKT / SINGT (6 a.m. UTC): Germany Industrial production nsa wda (November YoY)

3 p.m. HKT / SINGT (7 a.m. UTC) UK house prices in Halifax (Dec. MoM)

CoinDesk TV

In case you missed it, here are the most recent episodes of “First mover” to CoinDesk TV:

Crypto Markets Tumble, CoinDesk’s annual digital asset review, Australian Open in the metaverse

“First Mover” dived into the crypto markets with CoinDesk research analyst George Kaloudis for your first look at CoinDesk’s latest annual review. Packed with data and analysis on crypto performance and trends, the hosts and Kaloudis discuss the implications for 2022. Additionally, the Australian Open has announced its metaverse plan following the announcement of the tennis superstar Novak Djokovic visa refused. Guests were Ridley Plummer, Australian Open Metaverse and NFT Project Manager and Adam De Cata of Run It Wild.

Latest titles

Arab Bank Switzerland discreetly launches DeFi The Swiss sister entity of Arab Bank, based in Jordan, offers customers access to AAVE, COMP, UNI and more.

Polygon under accidental attack by a swarm of sunflower cultivators A popular new blockchain game is congesting Polygon, causing gas prices to skyrocket.

A16z Leads $ 25 Million Extra Round for DeFi Goldfinch Credit Protocol Other investors on the cycle included renowned hedge fund manager Bill Ackman, crypto investment firm BlockTower, and investment management firm Kingsway Capital.

NYDFS Hires New Deputy Virtual Currency Superintendent Peter Marton will join the regulator’s research and innovation group, with a particular focus on digital currencies and blockchain.

Longer readings

Facebook, Walmart and how businesses shouldn’t settle in the metaverse Facebook’s “video hub” destroyed the companies that followed. The metaverse could be a repeated act.

What is Web 3? Here’s how Future Polkadot founder Gavin Wood explained it in 2014 A classic blog post envisioning a “post-Snowden web” is taking on new relevance today.

Today’s crypto explicator: How does Ethereum staking work?

Said and heard

“Looks like 2022 is destined to prioritize people who align with the energy you want to see in yourself.” (Christopher Mims, Technology Columnist for The Wall Street Journal on Twitter)



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