Bitcoin Holds Above $ 30,000 But Price Chart Looks Ugly

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Bitcoin rebounded to around $ 32,200 after hitting a 2.5-week low early Friday, near $ 31,000.

According to Edward Moya, senior market analyst for Oanda, the largest cryptocurrency by market value may have been supported by a CoinDesk report that Bank of America has approved bitcoin futures trading for certain clients.

“This is a significant commitment for America’s second-largest bank and signals that interest in cryptocurrency trading is here to stay,” Moya wrote in an email. “On Wall Street, if a bank sees an opportunity to do something risky, others will easily justify following their lead. ”

Latest prices

Related: Bitcoin Falls As Investors Buy $ 22,000 and $ 20,000 Options

Crypto-currencies:

Bitcoin (BTC): $ 31,964.2, +1.04%

Ether (ETH): $ 917.5, -0.29%

Traditional markets:

Analysts said bitcoin could prepare for a price break – higher or lower – after trading in a range of around $ 30,000 to $ 40,000 over the past eight weeks.

The big concern is that a fall below the psychological level of $ 30,000 could trigger further selling as options traders seek square positions.

Related: Bitcoin Downtrend With Possible Break Of $ 30,000 Support

“There is a big movement to come,” blockchain analyst William Clemente III wrote in Anthony Pompliano’s newsletter on Friday. Theoretically, we could be looking at this big move in the next few days, but it could take up to three full weeks. “

The breakout looks more likely to be on the downside, based on the appearance of the bitcoin price chart, according to Mati Greenspan, founder of cryptocurrency and currency analysis firm Quantum Economics.

“Bitcoin’s chart looks really ugly right now,” Greenspan wrote in his newsletter. “The downward slope that has materialized over the past few days gives the impression that gravitational forces are calling for a retest of the red line support at $ 20,000, the previous all-time high. In technical terms, it’s called surrender.

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Circle and crypto investors

Earlier this month, Circle, the company behind the fast-growing USDC stablecoin, announced its intention to become a public company at a valuation of $ 4.5 billion, through an agreement with a company of special purpose acquisition (SPAC).

Charlie Morris, founder of ByteTree Asset Management, speculated this week that the deal could end up attracting more investors to cryptocurrencies.

This is “unquestionably the starting stock for the cautious,” Morris wrote on July 14 in his weekly bulletin.

Big investors might find it hard to resist the action due to the rapid growth of the USDC: Stable coin supply has soared to over $ 25 billion, from around $ 3.9 billion at the start of the year. “It’s clear to the eye that this business is growing like a weed,” Morris wrote.

What might make new stocks more attractive to portfolios is that the USDC “fuels crypto, but has no volatility, making it a natural haven from asset managers or miners whose fortune is tied to crypto prices, “according to Morris.

But it might just be a camel’s nose under the tent:

“The old world will eventually own all of these stocks anyway, and that’s why index funds always amuse me. They are simply buying whatever is stuck in front of them, which means investors who try to avoid crypto will end up owning it. Soon everyone will be invested in crypto and crypto stocks whether they like it or not, and Circle’s list will be a crowd-pleaser.

What’s up with the tether?

The parabolic growth of the Giant Stable Tie (USDT) market capitalization suddenly came to a halt in late May, just as the price of bitcoin was reaching all-time highs.

According to analysts and market participants who spoke to Muyao Shen from CoinDesk, the sudden pause reveals that the world’s most traded cryptocurrency sees its dominance threatened by three unprecedented challenges combining in a perfect storm to shake up stablecoin .

China’s crackdown on cryptocurrencies and money laundering has stifled the ramp to crypto markets through over-the-counter brokers, while listless bitcoin prices have reduced the incentive to invest : less money entering the market, there is less tether demand, ”Rachel Lin, former vice president and founding partner of Singapore-based crypto investment firm Matrixport, told Shen.

The rising star of the stable coin market is increasingly the USDC. “I think USDC has a chance to compete in the Asian stablecoins market against tether,” said Justin Sun, who runs the Tron blockchain.

Other questions have been raised recently by regulators and governments around the world about the USDT and other stablecoins. “The market is steeped in bearish sentiment and traders are looking for a reason,” said Noelle Acheson, head of market analysis at lead crypto broker Genesis Global Trading, a sister company of CoinDesk. “It’s FUD (fear, uncertainty and doubt) season, and Tether’s vulnerabilities are almost always a part of that conversation.”

A Tether executive, while acknowledging that demand for USDT has fallen, argued that the trend is not exclusive to the token.

“Demand for tether comes and goes, and has been affected by the drop in demand in recent weeks,” Paolo Ardoino, chief technology officer at Tether, said in a written response via a spokesperson.

Altcoin balance sheet

Thorchain Loses 4K Ether In Attack: Thorchain suffered an attack on the crypto trading protocol that drained around 4,000 ETH, worth around $ 7.7 million based on the price of the ‘ether at the time of publication. The company tweeted that it would provide “more detailed assessment and recovery steps” soon. Administrators wrote earlier that the network had been shut down while developers investigated the extent of the breach. “Although the Treasury has the funds to cover the amount stolen, we ask the attacker to contact the team to discuss the return of the funds and a bonus commensurate with the discovery,” wrote the administrators on Telegram.

Binance stops support for stock tokens: The crypto exchange Binance has said it will no longer support stock-linked tokens, just three months after making them available on its trading platform. Binance announced on Friday that exchange tokens are not available for purchase on its website as of now, and support for these tokens will end on October 14, with all positions closed the next day. The struggling exchange, which has faced regulatory headwinds, said the move would allow it to focus on other commodities.

FOX Token Rally: Following ShapeShift’s announcement that it would transform into a Decentralized Autonomous Organization (DAO), its FOX governance token increased 300% to $ 1.16 in several hours. While the cryptocurrency has returned to $ 0.55 in the past 24 hours, it is still up nearly 200% this week – a stellar performance given the broader market lull. Analysts are divided on whether the rally represents ever more intense search for yield or whether investors are applauding ShapeShift’s pioneering advantage as DAO.

Relevant news Other markets

Most digital assets on CoinDesk 20 ended lower on Friday.

Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):

stellar (XLM) + 3.37%

them (EOS) + 3.12%

Notable losers:

dotted (DOT) -5.4%

year of funding (YFI) -5.26%

algorithm (SOMETHING) -4.79%

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