Brace Brace
Cryptos everywhere saw a flash crash over the weekend. Bitcoin briefly flirting with US$50k while Ethereum going below US$2.1k. Alts were not spared as well. There was blood everywhere, a total of US$9.32b in liquidation. Timing coincided with the drop in hash rate as well as Turkey banning transactions in cryptos. How do you stop an idea? In some respite, ETH just broke ATH again. Breaching US$2.6k before falling back to US$2.2k, all this while BTC was still hungover from the flash crash. In fact, bitcoin has gone lower since and is at US$49k at time of writing.
This week brings WeWork to the list of companies accepting cryptos as payment. And like companies before them, they will not be converting them to fiat. Holding them as they are in their balance sheet. Same news, different week. Corporate hodling seems to be the new in thing. Short term charts pointing bearish, this could be a good time for hodlers with diamond hands. Bitcoin dominance falling below 50% and heading for its worst week since February, we could be in for a rough ride.
Bitcoin has crashed to levels not seen since… 2 weeks ago. Invest wisely, avoid leverage and stay safe.
Bitcoin Flash Crashed to $51K
After Bitcoin fell below the previous support level of $60,103 yesterday, it plummeted from $60K to around $51K, incurring a loss of around $9,000 in just four hours and creating the largest reversal record since February.
The decline in the hash rate of Chinese mining pools, the Turkish government’s ban on cryptocurrency transactions, and US rumours of money laundering activities involving cryptocurrencies triggered massive BTC sell-offs.
The safety integration of power outages in Xinjiang in northwestern China has led to a decline in the hash rate of mining rates.
Ethereum Reaches US$2.6k
The token has been moving upwards since it bounced at the previous all-time high resistance area of $1,400.
The rate of increase accelerated this week, and an all-time high price of $2,607 was reached on April 22.
Technical indicators are still bullish. The MACD & Stochastic Oscillator is still increasing. Also, the RSI has just broken out above 70. While there is a potential bearish divergence in the RSI, the resistance line is still far from the current value.
WeWork to accept crypto payments
The coworking firm is the latest to see crypto as a suitable asset for its corporate treasury. Coworking space giant WeWork is the latest company to announce plans to hold cryptocurrencies on its balance sheet.
The SoftBank-owned commercial real estate firm announced its plans via a statement on Tuesday. WeWork’s crypto balance sheet will come from the company adopting cryptocurrencies as a payment method.
According to the announcement, WeWork has partnered with crypto payment service platform BitPay to accept digital currency payments for its workspaces. WeWork will reportedly accept Bitcoin (BTC), Ether (ETH) and stablecoins USD Coin (USDC) and Paxos (PAX).
Worst Week Since February
Just as technical charts suggested a weakening trend, with altcoins rallying, bitcoin slides toward $50,000.
Bitcoin prices extended their recent decline late Thursday, falling for the seventh day in nine, to as low as $50,450. Bitcoin (BTC) is down 9.8% since Sunday, the biggest drop on the weekly price charts since late February.
📈MARKET PULSE
Best Curated Article