The crypto market has stalled this morning after strong growth on Tuesday. All major Altcoins turned their earlier profits while Bitcoin managed to keep them. The total value of all digital assets in circulation was $ 181 billion, compared to $ 185 billion, reached on Tuesday. The average daily volume of trade remains at $ 52 billion.
Bitcoin retains profits against the downside correction of Altcoins
Bitcoin finally broke the range and refreshed the highest levels this year. The first digital coin again visited $ 5,632 for the first time since November 2018. Behind the rally seemed to be technical factors rather than news.
On the fundamental front, Afghanistan and Tunisia are looking to issue bonds based on Bitcoin to help save their devastated economies.
Khalil Sediq, governor of the Central Bank of Afghanistan, told to Asia Times that Afghanistan is trying to create a sovereign crypto bond to raise $ 5.8 billion for the mining, energy and agriculture sectors of the country. Permanent wars and shocks show that the country’s GDP has fallen sharply over the years. At present, 25% of the country’s population is unemployed. Marouane El Abassi, Governor of the Banque Centrale de Tunisie, also said that Tunisia has set up a special group to seriously study the functionality of a sovereign Bitcoin bond. Tunisia is also the first country to issue its own digital currency – e-dinar.
Bitcoin at the time of my writing is trading at $ 5,580, which is 1.45% higher than the same time on Tuesday. Although the short-term trend is bullish, BTC is in overbought territory now. This means that a downside correction is highly probable at this stage. The hourly chart RSI began to turn down, although it is still on the overbought territory. And this signals that the correction phase is not over.
The closest support is $ 5,500. Convincing move below this level will boost the bears’ pressure to test $ 5,400. On the upside, the next strong resistances are 5,730 and the psychological level $ 5,800.
Societe Generale issues tekonized bonds of the Ethereum blockchain
The French specialist credit institution, Societe Generale SFH, issued 100 million euros ($ 112 million) bond as a security token for Ethereum blockchain. The company announced the news yesterday.
The aim of the transaction was to investigate a more efficient way to issue bonds, potentially contributing to better transparency as well as faster transferability and settlement. The company says in the announcement that the product “proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries.”
Technical analysis of Ethereum
Ethereum (ETH) dropped yesterday to $ 169, after the epic rise to $ 176. The second-largest coin is currently trading 2.73% down for the past 24 hours and 2.30% up for the past seven days. Ethereum managed to recover from the last intraday low of $ 153.65, moving to a short-term bullish trend.
Despite profit-taking and clashing with sellers in the middle of this month, ETH/USD is trying to stabilize again. On the daily chart, we have a short-term bullish price channel since April 16th. At the moment Ethereum tested the bottom support line around $ 169.40. Rebounding from this level may send the price to the resistance $ 183.50. Otherwise, a clear break below the channel will set $ 164.81, followed by 153.65 as next bears’ targets.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.