Crypto Outlook: BTC Bulls losing momentum?

Since our last report, the price of Bitcoin appears to have stayed relatively unchanged since last week with the coin seemingly staying just above the $50,000 key psychological level. In this crypto report, we aim to shed light on the current developments that may influence the future price action of cryptocurrencies, present the potential catalysts that could drive their prices in the near future and finally conclude with a technical analysis of Bitcoin.

Crypto: Overview Report

Judge signs off on Binance plea deal with the DOJ

According to Bloomberg, the plea deal that was placed forth by the DOJ and accepted by Binance last November, was approved by the Judge last Friday. According to the terms of the plea deal, Binance will be paying a fine of $4.3 billion, which is one of the largest criminal penalties in the US per Bloomberg.

Furthermore, as part of the plea deal, Binance’s compliance must be monitored by an independent firm for as long as five years. Nevertheless, the conclusion of the trial which saw CZ Binance step down as CEO last year, could allow market participants to slowly regain confidence in Binance’s business practices, which could potentially translate into a flow of funds into the crypto-markets.

However, the fine of $4.3 billion, may weigh on the crypto markets should the company decide to pay the fine by selling some of its crypto reserves, it could weigh on the crypto markets and in particular Bitcoin. In conclusion, should Binance decide to sell off a portion of its crypto reserves in order to pay the fine, as part of the plea deal, it could potentially weigh on the crypto markets. However, we should note that at this point in time, no definitive method of payment has been declared by Binance regarding how they will pay the fine.

Blast Ecosystem sees its first “rug-pull” on its ecosystem

According to CoinDesk, the blast ecosystem which allows blockchain developers to use existing infrastructure rather than manage their own, has already seen its first “rug pull” which is when a team raises money from investors and the public and then suddenly “vanishes” shortly after.  According to the article, a project named “Riskonblast” which raised over 420 ETH, which is roughly $1.3 million, went “missing” over the weekend.

The report goes on to claim that all social media accounts were deleted, and the anonymous founders have vanished. It should be noted that the report also stated that Blast itself was not involved, it could lead to heightened volatility in the crypto markets. Furthermore, since the scam was done using ETH, it could lead to heightened speculation that they may “dump” some of the coins in the future and as such could weigh on the price of Ethereum. Yet, such a negative impact does not appear to have materialized at this point in time.

Lastly, we would also like to note this week’s upcoming ICOs:

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 50000 (S1), 45200 (S2), 39200 (S3)
• Resistance: 52900 (R1), 57100 (R2), 61000 (R3)

BTC/USD appears to have stagnated just above the 50000 (S1) key psychological support level and has moved in a relatively sideways fashion between the 50000 (S1) support level and the 52900 (R1) resistance line, since the 15^th of February. Nevertheless, we continue to maintain our bullish crypto outlook for the coin and supporting our case is the RSI indicator below our chart which currently registers a figure near 60, implying bullish market tendencies.

For our bullish outlook to continue, we would like to see a clear break above the 52900 (R1) resistance level with the next possible target for the bulls being the 57100 (R2) resistance ceiling. On the other hand, for a sideways bias we would like to see the coin remain confined between the 50000 (S1) support level and the 52900 (R1) resistance line. Lastly, for a bearish outlook, we would require a break below the 50000 (S1) support level, with the next possible target for the bears being the 45200 (S2) support base.

Disclaimer:
This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

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