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Crypto Verse: a review of the week in cryptocurrencies

Prices rebound despite the continued drama in the sector.

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Crypto prices have lifted as hopes build for an end to US Federal Reserve’s rate hiking cycle. In this week’s Crypto Verse, we run through what’s happening in the crypto world right now and take a look at the charts of Bitcoin, Ethereum, and the Crypto 10 Index.

Volatility subsides but unresolved issues persist

The volatility in crypto assets diminished through December and into early 2023. Bitcoin historical volatility has dropped to new lows and levels seen prior to the FTX collapse.

Source: TradingView

The FTX scandal continues to play out, although it has ceased to be a market-moving event. Sam Bankman-Fried was arrested in the Bahamas and extradited to the United States, with the disgraced crypto-King released on $250,000 bail as the investigation into his failed crypto exchange unfolds.

Speculation about the strength of Binance’s balance sheet remains, as CEO Changpeng Zhao attempts to quell the markets’ nerves amidst reported outflows. Billions of dollars have been withdrawn from the exchange since the FTX crisis, stoking speculation about whether Binance will be the next to fail.

The Winklevoss twins’ exchange, Gemini, is also under the microscope. Its dispute with Grayscale and Genesis remains unresolved, with the Winklevosses calling for the removal of the CEO of both business’ parent company, Digital Currency Group.

Three cryptos to watch

  • Bitcoin

Bitcoin remains in a downtrend. However, in the short-term, the crypto is carving out a short-term uptrend. Price is approaching a key level of resistance at $17,500, which if broken, may open a test of $18,500. Support may be found at the 20 and 50-day moving averages around $16,830.

Bitcoin daily chart

Source: IG
  • Ethereum

Ethereum also remains in a downtrend. However, the price is approaching a key level of resistance at $1350 as short-term momentum remains pointed higher. A break of that level could open a run toward the 200-day moving average of around $1400. Support might be found at the 20, 50, and 100-day moving averages.

Ether daily chart

Source: IG
  • Crypto 10 Index

The Crypto 10 Index chart is looking constructive currently. A possible double bottom has been put-in as short-term price momentum moves higher. Major resistance could be found around 6250 and major support is at 5300.

Crypto 10 Index daily chart

Source: IG

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