Here is what you need to know on Thursday, May 28, 2020.
The cryptocurrency landscape is painted with one red brush as we usher in the European session. On Wednesday, there was a bullish wave that swept across the market but its effect was not significant enough to escape the trappings set by the bears.
Bitcoin, for example, stepped above the coveted $9,000 and extended the gains above $9,200. Attempts to push above $9,300 failed as Bitcoin hit a snag at $9,289. At the time of writing, sellers are forcing the price towards critical levels at $9,100 and $9,000. BTC/USD is teetering at $9,164 after losing 0.50% of its value on the day. If the price can hold above $9,100, buyers could eventually regain control and pull Bitcoin above $9,200 while focusing on higher levels at $9,400 and $9,500.
Ethereum recovery continued above $200 but could not overcome the seller congestion at $210. An intraday high has been reached at $209 but ETH/USD is trading at $206 after a 1% loss on the day. The lowest price level of the day is $205, therefore, if bulls can defend this a key support area, they can find balance ahead of another attack on at $210.
Ripple, which is now the fourth-largest cryptocurrency in the world after losing the third spot to Tether (USDT) is battling increased selling activities on the day. XRP/USD has sunk 0.76% on the day to trade at $0.1963. It is apparent that $0.20 is a strong resistance zone that must be tackled if Ripple buyers desire to see action targeting $0.30. Meanwhile, defending short term support at $0.1950 is key although $0.19 is the known weekly support.
Among the top 100 cryptocurrencies, the most-improved include VeChain (up 5%), Hedera Hashgraph (up9.50), Enjin Coin (up 15.69%), Electroneum (up 20.74%), and CyberVein (up 16.41%).
Chart of the day: BTC/USD hourly
Goldman Sachs, one of the largest investment banks in the United States analysis of the cryptocurrency market, particularly Bitcoin has been deem as flawed by cryptocurrency enthusiasts. The bank in a presentation to investors said that it does not classify Bitcoin as an asset class. Goldman Sachs gave several reasons for its stance including dangerous hacks, illicit activities and lack of cash flow.
Bitcoin price continues to struggle to stay above $9,000 following the news from Goldman Sachs. A break towards $9,500 failed to break $9,300 resistance level and has led to losses under $9,200.
The biggest bank in Russia Sberbank is reportedly purchasing 4,917 blockchain ATMs that have the ability to mine cryptocurrencies. The bank takes up over 44% of the entire personal deposits in the country and operates more than 14,200 branches. It boasts of more than 77,000 ATMs. The Russian government is the largest shareholder of the bank. The blockchain graphics card ordered to be a feature in the ATMs could be sued for various purposes including crypto mining and recording ATM transactions on blockchain.
There is concern in the industry that Bitfinex continues to print Tether (USDT), the largest stablecoin in the market but no evidence or plan for a coin burn. A recent report says that USDT is mainly utilized by arbitrageurs on the centralized exchanges. According to Paolo Ardoino, the CTO of Bitfinex and Tether says that USDT has failed in bringing stability into the decentralized finance (DeFi) market.
“It’s pretty clear that most of Tether is used on centralized exchanges, namely Huobi, Binance and Bitfinex. The constant movement back and forth between users and these exchanges reflects the fact that Tether is mostly used for arbitrage. Users can easily make a profit by buying from one exchange and selling on another for a higher price.”