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Bitcoin (BTC) Key Levels to Watch

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BTC, Analysis and News

  • False Break Through 40k Could Prompt Short-Term Bullish Rebound in Bitcoin

Bitcoin (BTC), Ethereum (ETH) – Collapsing Into Multi-Month Support as  Sellers Triumph

Following a soft week on Wall Street, Bitcoin as well as other cryptocurrencies have also come under pressure. A reminder that Bitcoin is a risk-on asset or in other words a liquidity haven, the pre-Covid view that Bitcoin was a safe-haven had been well and truly debunked when Bitcoin had cratered during the Q1 2020 sell-off. Thanks to the global central bank and government largess, the crypto space has been among the top performers of the “buy everything rally”. Therefore, with the Federal Reserve talking up balance sheet normalisation to come much sooner than many had expected, the potential near-term withdrawal of liquidity poses a threat to the crypto space and likely what we are seeing now, is cryptos discounting that future withdrawal of liquidity. The chart below provides a reminder as to how Bitcoin performed during QT in 2018. Admittedly, this is just a sample size of 1, not to mention it also came after a blow-off top at 20k. However, with institutional involvement much higher now than in 2018, macros matter more than ever before.

Bitcoin Performance During 2018

Bitcoin (BTC), EUR/USD, USD/CAD Key Levels to Watch

Source: Refinitiv

False Break Through 40k Could Prompt Short-Term Bullish Rebound

Taking a look at the chart, the major focus for Bitcoin is on the psychological 40k handle. While holding off for a break below over the weekend, having hit a low of 40.5k, with equities beginning to come under pressure, we can expect another test of 40k. That being said, for those who remain a Bitcoin bull, it would be preferable for a false break below 40k, much like what we have seen previously at psychological levels.

Bitcoin (BTC), EUR/USD, USD/CAD Key Levels to Watch

Source: Refinitiv

Jan 10, 2022 |  Justin McQueen, Strategist. DailyFX

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    • Sadly insecurity is still one of the setbacks of crypto adoption. I reckon if all exchanges exhibit this concerted effort and commitment towards preserving the security of users' funds, the industry will be made more conducive and crypto adoption will be fast-tracked.
    • Actually I presume it should be $400M+ by now cos it's one Exchange next to Binance that prioritize their users funds safety imho.
    • This post is majorly for new crypto enthusiasts looking for good exchange to explore however it is also beneficial to those who already have an exchange they are using. Coinmarketcap and Coingecko is one place new users can explore to find out about the ranking of crypto exchanges however one must do other research not to base his/her judgement only on the position the crypto exchange occupies on this platforms. Other factors like user protection fund, proof of reserve and regulatory compliance must be considered before choosing a CEX especially with the evolving regulatory landscape from different countries which have forced some exchanges out of some countries. From the point listed above, Binance and Bitget take the industry lead in protection fund with $1b and $401m respectively and have verifiable Proof of reserve whose public address can be seen and viewed by their users but when it comes to regulatory compliance, Bitget is number 1 as the exchange is operating in most countries where other top cex are not operational. The visit to the respective cex website and mobile app also indicate users interest and popularity of the exchanges. Below is the ranking of top crypto exchanges by weekly visit. The figure below is only for website visit excluding mobile app. It is important to note that this exchanges were not founded the same year hence it's understandable to see clear difference in the number of website visit. HTX and Gateio were founded in 2013, 10 years in the industry. Kucoin, Binance and OKX were founded in 2017 and MEXC, Bitget and Bybit were founded in 2018. The above exchange are all good exchanges for new users to explore. Which of these crypto exchange do you use and why do you choose it over others?
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