Round-up of the most important news stories within the cryptocurrency market during the weekend, including analysis of two top cryptocurrencies.
Bitcoin and Ethereum Analysis
Amid the ongoing political crisis and talks of an imminent war, Bitcoin dipped below its critical level of $39,573 to a little over $35,000. $40,000 is now an important level that is expected to act as a strong resistance for Bitcoin. However, looking at the MACD indicator, Bitcoin is surrounded by bearish sentiments, with many sell orders in line.
On the other hand, we need to keep a keen eye on the $38,000 key-support level. If Bitcoin goes down, we might see the cryptocurrency moving to $37,000 and then $33,000, after which, we may see it at the $28,000 level. But, it’s very unlikely to happen due to the strong hands of the long-term investors as the data from Glassnode’s HODL Waves indicator suggests.
As of the previous Saturday, over 61% of the BTC supply remains unused in a transaction for more than a year, which is a sign of a short downtrend before Bitcoin bounce backs and sees a major price action.
Ethereum, the second-largest cryptocurrency by market cap after Bitcoin, extended decline below its crucial support level of $2800 during the weekend and even broke the 100-hourly SMA to move further into a bearish zone. The coin traded as low as $2575 before correcting higher and trading above the $2640 level.
However, in the past few hours, Ethereum has started recovering. The MACD indicator is also showing a bullish signal, with buy orders in line.
An immediate resistance level is at $2755, then at $2800, and if Ethereum is able to move above these upside levels, it may go near the $2880 level next. On the other hand, if the cryptocurrency moves in the downward direction, we may see it retesting price levels not since last month, like $2500 or even $2200.
New Rules, Bills And Some Action: US Government is Getting Serious About Cryptos
Last week, we saw US lawmakers drafting a bill to mitigate risks on cryptos, as well as suing BlockFi for not following the rules. In the last two days, the officials were seen getting more involved with the crypto market.
The Justice Department of America has appointed a veteran cybersecurity prosecutor to lead the National Cryptocurrency Enforcement Team. The team will be led by Eun Young Cho and is reportedly expected to investigate and prosecute illegal cryptocurrency schemes carried out by hackers and criminals in nation-states, especially in North Korea and Iran.
Not just a new team, the US government has a comprehensive plan to deal with the crypto market. Yahoo Finance reported earlier today that the U.S. President Joe Biden is expected to issue an executive order on cryptocurrencies this week. It will direct the state agencies to study cryptocurrencies and Central Bank Digital Currencies (CBDCs) in order to come up with a government-wide strategy to regulate digital currencies.
But, while state governments wait for Joe Biden’s orders, US Congressman Warren Davidson introduces the “Keep Your Coins Act”, aiming to protect the privacy of US citizens dealing with cryptocurrencies. However, the Ohio lawmaker hasn’t shared an exact date to when the draft will be introduced in the U.S. House of Representatives.
In another attempt to protect the cryptocurrency investment sector, the Federal Open Market Committee (FOMC) has adopted a new set of rules that will prevent senior FED officials from purchasing cryptocurrencies.
Another positive news from US lawmakers came on Sunday when Bitcoin expert Dennis Porter and political advisor Ian C. Calderon tweeted about working on a bill that would allow users to pay the state in cryptocurrencies.
Breaches, Hacks, and Rug Pulls Continues to Be A Part of The Industry
The IRA financial breach of $35 million stolen in Bitcoin and Ethereum took last week’s spot on crypto-related crimes, while the OpenSea hack is currently the talk of the crypto town. Dubbed as the world’s largest NFT marketplace, OpenSea confirmed on Sunday that it has been hit by a phishing attack resulting in the loss of valuable NFTs worth $1.7 million. Here are some recent updates on the hack:
It may take a while for OpenSea to investigate the hack, whereas, PeckShield experts have already cracked down the list of NFTs that were stolen from the hack:
The same blockchain security and data analytics company also detected a rug pull by a DeFi ecosystem Raptor Finance in the last few hours.
Money laundering using cryptocurrency is another rising issue as reported in a report published on Sunday by the Center for a New American Security (CNAS). The authors have warned about a Pyongyang-led cybercrime organization known as the Lazarus Group that is very likely to attack companies from the crypto sector.