Bitcoin, Terra (Luna) Talking Points:
- Bitcoin bulls retaliate, $30,000 psychological level remains key
- Terra and Coinbase collapse, can the digital realm recover?
- USD gains favor as a safe-haven asset (at least for now)
Bitcoin ‘Buffer’ Scrutinized – Crypto Woes Continue
Bitcoin, Ether and other major crypto’s currently remain in the headlines after a tumultuous week of whipsaw price action.
As an array of both fundamental and geopolitical factors continue to weigh on risk-sentiment, digital assets (which performed exceptionally well since the onset of the Covid-19 pandemic) have recently struggled to ascertain the optimistic rationale that previously allowed the market capitalization of the industry to temporarily rise beyond the $3 Trillion mark before retreating back below the$2 Trillion mark.
Although the dismal release of Coinbase earnings and the collapse of the stable coin Terra (USDT) have recently contributed to a decline in demand for digital assets, Bitcoin prices have managed to temporarily rebound off of the key psychological level of $30,000 which currently remains as both critical support and resistance for the imminent move.
As the uncertain geopolitical backdrop continues to weigh on digital assets, BTC/USD is likely to continue to assist in the catalyzation of price action, at least for now.
For the week ahead, the release of major economic data and major news events may continue to contribute to the movement in the prices of digital assets with the potential to either increase or decrease the price of digital assets.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707