Archive for  November 2021

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For the previous two days, Bitcoin has been correcting in a downward channel. For the previous two days, the bulls have been striving to defend the 100-day simple moving average ($54,064), but the thin bounce shows a lack of urgency to accumulate at the present level. The down-sloping 20-day exponential moving average ($58,521) and the relative strength index (RSI) below 39 indicate that bears are in control. If the price rebounds off the current level, the bulls may hit a wall at the 20-day EMA. To signify that the correction may be finished, the bulls must push the price above the channel and keep it there. On a break, the pair might gain positive momentum and close above $61,000.

The Ethereum network implemented the London hard fork update about 3 months ago, which included a mechanism (EIP-1559) that modified Ethereum’s fee rate to a new scheme that renders the cryptocurrency ether deflationary. Since then, 1 million ether has been burnt, which is about equal to $3.8 billion in Ethereum at today’s exchange rates. The second-largest crypto asset in terms of market capitalization, Ethereum (ETH) has an overall valuation today just above $500 billion. Ethereum’s market capitalization represents 18.8% of the $2.7 trillion crypto economy.

The Financial Services Commission, or FSC, of South Korea said on Tuesday that nonfungible tokens, or NFTs, will be taxed beginning next year. According to The Korea Herald, the tax code reform would levy a 20% tax on revenue from virtual assets over 2.5 million won ($2,102) beginning of January 1, 2022. Doh Kyu-sang, vice chairman of the FSC, stated that only some NFTs will be classified as virtual assets and hence liable to “other income” taxes, referring to those utilized for large-scale investment or payment. The complete extent of taxable NFTs is defined by tax authorities. As the NFT marketplace rapidly expands in South Korea and the world, the debate over regulation versus innovation remains controversial.

Following a good weekend, BTC/USD was rejected above $60,000 twice and has now dropped below $57,000 as market enthusiasm has waned. The stakes are high: some believe that lofty Bitcoin price expectations may still be realized by the end of the month, while others feel that this bull market will last longer than past ones. BTC/USD recovered some of its losses after hitting five-week lows of $55,650, and on Saturday, it even “gapped higher” to attempt a swipe at $60,000. This was eventually failed, but a new effort was made on Sunday, with Bitcoin briefly trading in the $60,000 level until a hard rejection sent the market plummeting once more.

After today’s 13% decline to $4,100, Ethereum (ETH) traders may have a few reasons to fear. The sharp drop looks to have broken a 55-day rising channel with a $5,500 goal. Those not worried about technical analysis will understand that the cryptocurrency’s 3.4% daily volatility justifies the 10% negative price swing. Still, one should not disregard externalities such as the United States Infrastructure Bill approval on Monday. The Act requires the reporting of digital asset transactions worth more than $10,000 to the Internal Revenue Service. It is unclear if this will apply to people and firms creating blockchain technology and wallets.

Bitcoin’s (BTC) bullish mood suffered a little blow on Nov. 12 when the Securities and Exchange Commission (SEC) rejected VanEck’s Bitcoin exchange-traded product, which aimed to follow the market price of Bitcoin. Bitcoin has pulled back to the 20-day exponential moving average ($62,954), which is an important support to keep an eye on. Traders generally buy the dip to the 20-day EMA in a strong uptrend. When it broke and closed above the overhead resistance at $225.30, Litecoin (LTC) completed a rounded bottom pattern. The price immediately gained pace and climbed to the psychological level of $300, when the bears put up a strong fight. On November 9, 10, and 11, the bulls forced Chainlink (LINK) over the overhead resistance at $35.23 but were unable to hold the price above it. This shows that bears are fighting hard to keep this level.

Bitcoin (BTC) reached a new all-time high of $69,000, while Ether (ETH) maintained its long march toward $5,000 after reaching a record high of $4,868 earlier in the day. Shortly after reaching this new milestone, however, traders began to take profits, resulting in an almost $7,000 decrease, dropping BTC’s price below $63,000. Interestingly, the breakout was initiated right as a report from the United States Bureau of Labor Statistics (BLS) showed a sharp 6.2% annual rise in the Consumer Price Index (CPI), a figure that has hit its highest mark in 30 years. Rising energy costs fuelled a spike in CPI, although economists have been tracking rising food and other products prices for at least six months. The current CPI is at its highest level since October 1990. Core inflation, which excludes the impact of rising commodity prices, increased by 4.6 percent, a level not seen since 1991.

BTC/USD fell in line with TSLA immediately after the Wall Street open, according to data from Cointelegraph Markets Pro and TradingView. The duo reached $66,650 before bouncing down to roughly $67,000, but still up $1,000 on the day. Tesla had volatility after it was revealed that CEO Elon Musk will sell 10% of his ownership, valued at roughly $23 billion at the time, after achieving all-time highs of $1,245 on Nov. 5. On Nov. 9, the bearish sentiment accelerated significantly, with TSLA losing up to 12% in minutes before rebounding. BTC, on the other hand, decreased by about 2%.

The dominance of Bitcoin (BTC) has declined from almost 48% on October 20 to 42.3% on November 7, while the entire crypto market value has continued to rise. This shows that the price activity has changed away from Bitcoin and toward alternative cryptocurrencies. Bitcoin whales are selling, according to CryptoQuant CEO Ki Young Ju, but this hasn’t resulted in a breakdown of the firm support near $60,000. He also noted that Bitcoin reserves have continued to decline across exchanges, indicating high demand from purchasers. Bitcoin broke above the bullish flag pattern on Nov. 2 but the buyers could not capitalize on this move and push the price above the overhead resistance zone at $64,854 to $67,000. This indicates the bears have not yet given up and are attempting to stall the up-move.

Central banks in Europe have been stepping up their attempts to use distributed ledger technology (DLT), the underlying technology of blockchain, in central bank money settlements. Banca d’Italia and Deutsche Bundesbank, the central banks of Italy and Germany, respectively, joined forces to work on settlements in central bank money of DLT-based asset exchanges. According to the release, the new approach would reduce counterparty risk for both parties by keeping the delivery-versus-payment manner of settlement. The programmable trigger would provide a technical bridge between conventional payment systems utilized by Eurosystem central banks and the DLT-based settlement of tokenized assets, complementing the digital euro.