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Bitcoin Posts Massive 10% Drop as Altcoins Consolidate; What Analysts are Saying



  • Bitcoin has seen some immensely bearish price action throughout the past few days, with sellers gaining full control of its price action
  • This has caused buyers to lose their grip over the market, being unable to spark any continued reversals
  • It does appear that the selling pressure seen throughout the past few days may continue hampering its growth, as BTC is now at risk of breaking below a few key levels
  • One analyst spoke about this in a recent tweet, explaining that it is nearing a key support level that may allow it to see a rebound
  • However, an acceleration of this downtrend could invalidate this strength and potentially lead to significantly further downside in the coming days

Bitcoin and the entire crypto market have seen some mixed price action as of late, with bulls being unable to take control of the benchmark cryptocurrency’s trend while many altcoins consolidate well-above their recent lows.

However, the strength seen by BTC in past weeks that allowed altcoins to post massive gains has since disappeared, and it may now begin placing tailwinds on their price action.

One analyst expects it to see further chop in the near-term, noting that its technical structure could be protected if bulls defend a few key levels.

Bitcoin Struggles to Gain Momentum as Selling Pressure Mounts 

At the time of writing, Bitcoin is trading down over 10% at its current price of $31,800. This marks a massive dip from its recent highs of $38,000 set just a couple of days ago.

The entire market is going fully risk-off, but it doesn’t appear that there’s any clear catalyst for this.

Unless BTC stabilizes here or posts a massive rebound in the near-term, it may decline towards its next key support at $30,000 and $28,000 before posting a v-shaped recovery.

Analyst: BTC Reaches Crucial Support, Making a Bounce Critical 

One analyst explained in a recent tweet that BTC is in the process of breaking below a key support level that must be defended in the near-term.

He notes that a break below this level could result in massive losses for the aggregated market.

“BTC: TL broke, back at HTF support. As long as selling doesn’t accelerate further I think Altcoins will perform on their ratio and Bitcoin will chop. Continuation triangle invalidated. With how it looks for now I think more chop is to be expected. (bounce to 34k from here pls)”


Image Courtesy of Smokey. Source: BTCUSD on TradingView.

The coming few days should shine a light on Bitcoin’s price action and whether this move is emblematic of a deeper correction that may be imminent in the near-term.

Featured image from Unsplash.
Charts from TradingView.

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Thailand’s crypto market seeks clearer regulations as industry interest peaks




Thailand currently lays claim to one of the more regulated crypto trading markets in the world, with exchanges having to adhere to strict regulatory standards. For example, at the start of the year, Bitkub, the country’s largest cryptocurrency exchange, was shut down by regulators after the trading platform faced a series of lengthy service outages. 

Despite these seemingly stringent conditions, the country’s crypto market has continued to thrive. That being said, a tipping point came recently when Thailand’s Securities and Exchange Commission released a statement that it plans to enact a 1 million baht (about $33,000) minimum annual income requirement for crypto investment in the country.

The decision was met with immediate backlash from the local investor community — as it would potentially exclude low and middle-income earners from the cryptocurrency market — so much so that the regulatory body had to clarify its above-stated stance within days of making the announcement.

In this regard, the SEC noted that the previous draft document was just a means of gauging investor sentiment, with Ruenvadee Suwanmongkol, secretary-general of the Thai SEC, claiming: “I proposed the criteria that many considered too tough to prompt people to express their opinions on the matter and did not intend to say these are the exact qualifications that will be implemented.”

Providing his thoughts on the matter, Mr.Pinpraaj Chakkaphak, CEO of local cryptocurrency exchange ERX, told Cointelegraph that the original intention of the SEC was not malicious but one that sought to create a mechanism that could help protect investors from any unwarranted market risks, adding:

“We understand the good intentions of the SEC. However, many stakeholders in the digital assets market and the majority of the public disagree with the plan. From ERX’s point of view, this protection mechanism should not focus on minimum income, instead, it should come in the form of improved information disclosure by operators and investor education.”

Regulations should not impede market growth

To gain a better overview of the situation, Cointelegraph spoke with Konstantin Anissimov, executive director at CEX.IO, one of the most widely used crypto exchanges in Thailand. In his opinion, by taking a stance that potentially hampers lower-income families from gaining access to a potentially lucrative investment class, the SEC was going against the very fundamentals of a free-market economy and freedom of choice.

However, on the other hand, he did concede that if a majority of the lower-income population did not have any basic financial education and understanding of the risks of such investments, the SEC’s approach may have been the only way to protect the public’s best interests. Anissimov added:

“Multiple approaches can be taken and minimum income is just one of them. I am sure that Thai SEC will take on the feedback received from the investment community and act in the interest of its population.”

Additionally, in a statement shared with Cointelegraph, Dr. Akalarp Yimwilai, CEO of a local crypto trading platform Zipmex, pointed out that he sincerely believes that the proposed draft law comes from a place of good intent and that it serves to protect investors by minimizing unnecessary risks.

He highlighted that the Thai crypto market is still in its infancy and that regulations around the space have only come into being around three years ago. As a result, the SEC is still looking to craft a legal framework for this asset class that can protect investors from future risks. However, Yimwilai did go on to say:

“The proposed draft aims to protect but it is important to also see that in doing so, a higher wall is being proposed which limits the opportunity of access to digital assets for many in this country. The key here I believe is to work hand in hand with the SEC to ensure the sustainability and height of that wall.”

Lastly, he believes that if the current draft was to get implemented, it could potentially lead to a substantial rise in the number of scams, potentially driving investors into an unregulated market where they could run into uncharted territory. Not only that, it could also lead to a lot of much-needed capital flowing out of Thailand, resulting in the long-term detriment to the country’s development and finances.

The Thai crypto market has been booming

The Thai digital assets industry has grown significantly during recent months. According to the country’s SEC, the number of cryptocurrency trading accounts within the county has risen from 160,000 at the end of 2020 to 470,000 on Feb 1. Not only that, approximately 50% of these accounts are owned by investors younger than 30 years of age.

Furthermore, Chakkaphak pointed out that crypto trading volumes in November 2020 lay at 18.44 Billion THB, compared to 100.90 Billion in February 2021, thus showcasing a staggering increase of 447.18% within a matter of just three months. He went on to add:

“Investors wanting to invest in the traditional stock market or in digital assets should educate themselves and do in-depth research. Our priority is to enable and educate investors to learn and build knowledge about investing in digital assets, as it is a new opportunity for all investors.”

Also, according to Yimwilai, Zipmex traded $1 Billion in 2020 in Thailand, with the figure expected to grow exponentially in 2021. Not only that, the cryptocurrency exchange was also able to raise $6 million in fresh funding from U.S.-based VC from Jump Capital.

He further highlighted that the assets under the company’s management are currently valued at around $100 Million, which seems to back up the notion that the Thai masses are ready to dive head into the burgeoning crypto sector.

Do things look promising?

Though for now, the SEC seems to be backtracking on its initial outline for market entry requirements, according to the Suwanmongkol, people who are putting their hard-earned money into cryptocurrencies are mostly new investors who may not be fully aware of the risks that come with investing in high-risk, highly volatile assets. “If the SEC just stands by and does nothing, it would be totally our responsibility if investors lose on cryptocurrency”, she added.

Lastly, the SEC reportedly had a dinner talk with representatives from local digital exchanges recently, suggesting that the government agency may still be looking to consult prominent members from within the space. The final hearing, regarding the matter, will take place on March 24 before the survey finally closes on March 27.

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Traders speculate that Bitcoin’s price may continue to trade sideways for now




Bitcoin’s price has declined in recent days. While it has rebounded from its weekly lows, the asset’s trajectory remains uncertain says CryptoWendyO, a crypto trader on Twitter.  

“The daily timeframe is not looking great as we are having trouble sustaining $50K,” she told Cointelegraph on Friday. “I am feeling like we will get a run to $51.6[K].”

She added:

“From there I would be cautious as rejection could lead back to the $50K -$45K range. A break down there could be a swift wick to $42-38K with a glorious recovery. Invalidation would be a sustained consolidation at $52K.”

After hitting record highs of approximately $58,360 in February, Bitcoin (BTC) dropped down to roughly $43,015 in subsequent days, based on TradingView data. The asset then rebounded up to about $52,660, before continuing its downward price action below $50,000. Bitcoin is trading at roughly $49,020 at time of publication.

Cheds, a trader on Twitter holding his CMT level I certification, expects “more consolidation from BTC above that key 42k level,” he told Cointelegraph on Friday. He also tweeted a chart of his range expectations.

“The big question is if the recent 27% correction is enough to bring us to a new high,” Cheds said. “In the meantime we will watch a tightening range on the daily of lower highs and higher lows.”

A number of technology stocks have also suffered price decline recently.