First Mover Asia: Bitcoin and other cryptos tick in weekend exchanges | Cryptocurrency

Hello. Here is what happens:

Price: Trade in bitcoin and other major cryptos is increasing slightly.

Insights: Stablecoins are coming under increasing scrutiny.

Technician’s Opinion: Bitcoin is weighed down by resistance at $34,000 and support at $20,000-$25,000.


Bitcoin (BTC): $30,377 +2.2%

Ether (ETH): $1,840 + 2.5%

The biggest winners

Asset Teleprinter Returnal DACS sector
Chain link LINK +5.1% Computing
gimbal ADA +3.0% Smart contract platform
Algorand ALGO +2.6% Smart contract platform

The biggest losers

Asset Teleprinter Returnal DACS sector
bitcoin money BCH −3.1% Currency
internet computer PCI −2.9% Computing
filecoin THREAD −0.1% Computing

Bitcoin surges in weekend trading

Bitcoin spent another weekend well inside the same neighborhood it has inhabited for much of the past month.

The largest cryptocurrency by market capitalization was recently trading just above $30,000, up slightly from Friday but still in the doldrums. Bitcoin has been hovering a bit above and below this threshold since early May, depending on the day’s events as investors nervously wait for clear signs on the direction of inflation and the global economy.

“BTC remains weak until it definitely breaks the $31,000-$32,000 range,” Joe DiPasquale, CEO of crypto fund manager BitBull, wrote to CoinDesk. “However, we continue to see buying below $30,000 which is keeping the price afloat. »

Ether, the second-largest crypto by market capitalization, recently changed hands just above $1,800, up slightly over the same period and well within the range it has held for the past two weeks under 2 $000. Other major cryptos were roughly flat, although mostly on the green side with LINK and ADA among the biggest gainers, rising 5% and 3% respectively. Trading was light, as is usually the case most weekends.

Cryptos’ weekend holding pattern moved slightly away from stock indices, which closed Friday, with the tech-focused Nasdaq plunging 2.4% and the S&P 500 1.6%. Digital assets and stocks have become increasingly correlated in recent months.

On a more upbeat note, a better-than-expected U.S. jobs report on Friday, showing nonfarm payrolls added about 390,000 jobs in May, suggested the economy was far from ready to pull back. Analysts fear that interest rate hikes by the US central bank could push the US economy into recession. And among the possible good news for cryptocurrency, shares of scholarly investor Cathie Wood’s ETF ARK Innovation, which includes crypto exchange Coinbase, are up more than 15% since the second week of May. Wood has been a notorious bitcoin advocate.

Still, crypto traders remain bearish, as evidenced by last week’s downturn in the Fear & Greed Index. BitBull’s DiPasquale sees a greater likelihood of Bitcoin falling from its current perch than breaking out. “We expect directional action in the coming week as Bitcoin breaks out of the current range or breaks down to seek a lower,” he wrote. “Currently, the probability of a breakout appears higher than an upside breakout. »


S&P 500: 4,108 -1.6%

DJIA: 32,899 -1%

Nasdaq: 12,012 -2.4%

Gold: $1,852 +0.09%


Another tough week for stablecoins

First South Korea. Then Japan.

Stablecoin protocols have completed another bumpy week of increased regulation and scrutiny.

Protocols that peg a digital asset to a fiat currency, commodity, or mathematical formula based on a group of assets have been on the defensive since the collapse of the stablecoin (UST) TerraUSD token in early May. Watchers of stablecoins, which are believed to be lower risk than other digital assets, anticipated the extra attention, especially for algorithm-based stablecoins such as UST.

On Friday, Japan’s parliament passed a legal framework around stablecoins to protect investors, making the country one of the first major economies to pass a law specific to stablecoins. The legislation, which will take effect in a year, clarifies the definition of stablecoins as a digital currency that must be pegged to yen or another legal currency and guarantees holders the right to redeem them at face value. The bill does not address stablecoins backed by existing assets or algorithms.

Only licensed banks, registered money transfer agents and trust companies can now issue stablecoins, although Japanese exchanges do not list them.

The law followed less than two weeks after a Korea Times report that South Korean financial authorities would introduce measures to subject cryptocurrency exchanges to greater scrutiny following the implosion of the UST and the LUNA token behind it. . A two-day emergency National Assembly seminar to discuss the debacle, which may have affected about 280,000 South Koreans, examined the role of exchanges and law enforcement, among other topics.

“We need to make sure the exchanges play their part, and to that end, it’s crucial that the watchdogs monitor them thoroughly,” said representative Sung Il-jong of the ruling People Power Party. . “When exchanges break the rules, they must be held legally responsible for ensuring that the market functions well without any problems. »

The country’s Financial Services Commission plans to establish close ties with law enforcement “to monitor any illegal acts in the industry and protect the rights of investors”, said its vice chairman, Kim So-young. .

Technician’s opinion

Bitcoin Dominance Ratio (Damanick Dantes/CoinDesk, TradingView)

Bitcoin (BTC) continues to face strong resistance at its 50-day moving average, which currently sits at $34,000.

The cryptocurrency has been anchored at the $30,000 price level for the past two weeks, absorbing the majority of trading volume. This could indicate volatile price movements later this month.

On the daily chart, bitcoin’s Relative Strength Index (RSI) is stuck below the neutral 50 mark, indicating a slowing momentum behind the recent price rally. The continued decline in momentum means that BTC’s six-month downtrend remains intact.

The weekly RSI is the most oversold since March 2020, which preceded an upward price trend. This time, however, the upside appears limited due to long-term negative momentum signals.

Still, in the short term, BTC might stabilize above the $20,000-$25,000 support zone. The 200-week moving average, currently at $22,179, is another indicator of long-term trend support.

BTC is on the lookout for a bullish countertrend signal, according to DeMark indicators, which could emerge over the next couple of weeks. This could pave the way for a near-term price rebound, which would delay further breakdowns on the chart. Upside moves could be fleeting, however, with secondary support at $17,673 providing more stable ground for capitulation.

Important events

09:00 HKT/SGT (01:00 UTC): TD inflation in Australia MoM/YoY (May)

9:30 a.m. HKT/SGT (1:30 a.m. UTC): ANZ job announcements

09:45 HKT/SGT (01:40 UTC): Caixin China Services PMI (May)

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First Mover Asia: Bitcoin and other cryptos tick in weekend exchanges | Cryptocurrency

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