One day after the bitter crash, the cryptocurrency Bitcoin remains under pressure. With an interim minus of 6 percent, the price has fallen today to the 50-day trend, which is currently at 44,400 dollars, but was able to fight its way back over the 200-day trend at 46,000 dollars.
In the higher-level chart image, the course was able to repair the greatest damage. In the course of the crash on Tuesday, the price fell to the exponential 21-week trend, which, in addition to the simple 200-day trend, is an important indicator for an intact bull trend in Bitcoin. The price rebounded from this support zone and is now again above the 200-day trend in the daily chart. As the week progresses, it is now a matter of confirming these two supports in order not to fall into negative momentum.
Heavily leveraged market was washed through
In addition to the introduction of Bitcoin as legal tender in El Salvador, which is actually to be assessed positively, there were no fundamental reasons for the crash on the market. In addition to a “sell the news” effect in relation to El Salvador, the market is assuming that the positions on the market, which have been heavily leveraged in the months since the May crash, have led to a risky environment, which has resulted in a chain reaction through centered sales have been liquidated and have made the crash correspondingly brutal.
According to information from data provider Glassnode, over $ 4 billion in open futures positions were executed as a result of the crash. That is the highest value since the May crash.
Thus, a lot of traders who were involved in long positions in Bitcoin and Co. have been painfully hit by the fall in prices. According to data from the information platform CryptoDiffer, a total of $ 3.5 billion in leveraged positions were liquidated on the various crypto exchanges.
US crypto exchange Coinbase has problems with the SEC
While the reasons for the brutal crash on the crypto market cannot be fully explained, new news is putting the shares of the US crypto trading platform Coinbase under pressure in pre-market trading. As the industry portal Coindesk reports, Coinbase has problems with the US Securities and Exchange Commission, as it does not approve a new planned product of the exchange and is considering a lawsuit.
Coinbase wants to offer so-called crypto lending on the stablecoin USDC. This is intended to give eligible customers the opportunity to lend their USDC to “verified borrowers” and receive interest in return.
According to Coinbase, they have been in talks with the SEC for 6 months and CEO Brian Armstrong recently stressed via Twitter that all requirements of the regulatory authority had been met, including the provision of summoned records and testimony from employees. Nevertheless, the SEC is now considering suing the company – without giving a precise reason.
By Alexander Mayer
Cover photo: Igor Batrakov / Shutterstock.com
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