The mandatory liquidation of crypto hedge fund Three Arrows Capital and the subsequent domino effect through the crypto industry marks a low for Bitcoin (BTC) for the time being. The former all-time high in the 20,000 USD zone proved strength even after the third touch, since then Bitcoin has formed a triangle formation.
An upside breakout should quickly take us to the old support zone around USD 30,000, which is of high historical importance. The reaction at these levels will set the direction of the journey for the coming months. If the breakout fails, a retest of the USD 20,000 level is likely.
Ethereum in the driver's seat
The market is inevitably led by Ether (ETH). The bottoming out for the second largest cryptocurrency by market cap occurred below the 2017/18 all-time high of USD 1,400, however, a rapid counter-movement brought the price to the historically significant zone around USD 1,800 (the equivalent of Bitcoin's USD 30,000 mark).
A breakout above this resistance zone would argue for a continuation of the upward movement towards USD 2,500. The relative strength of Ether is evident in the ETH/BTC ratio, which is again in the consolidation zone between 0.055 and 0.085, which will soon last one and a half years.
Ether's direction of travel is primarily driven by the narrative surrounding Ethereum's move to Proof of Stake (PoS) - also known as Merge. The event represents a game-changing step for decentralized networks and has various implications for Ether (ETH) as an asset. Of most interest to investors is a potentially deflationary future for the asset (sometimes called "triple halving").
Risk appetite is back
The recovery phase quickly spread across the entire range. On a month-on-month basis, almost all cryptocurrencies except one recorded notable increases, although the market seems to be dominated by the merge narrative here as well.
Winners over the last 30 days were Ethereum Classic (ETC) +141.15%, Ethereum scaling solution Polygon (MATIC) +57.92%, and Ether (ETH) +42.47%. In the short term (7 days), rivals Avalanche (AVAX) +20.41% and Polkadot (DOT) +11.30% are also making up some ground, with crypto exchange Binance's BNB token up +16.29%. The loser of the week is Bitfinex exchange token Unus Sed Leo (LEO) -6.34%.
Haftungsausschluss
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Risikohinweis
Anlagen und Investitionen, insbesondere in Kryptowährungen, sind grundsätzlich mit Risiko verbunden. Der Totalverlust des eingesetzten Kapitals kann nicht ausgeschlossen werden. Kryptowährungen sind sehr volatil und können daher in kurzer Zeit extremen Kursschwanken ausgesetzt sein.