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Last Week In Crypto By PrimeXBT

|Includes: Bitcoin USD (BTC-USD)
Summary

The evaluation of the cryptocurrency market cap came up to $122,140,384,213.

The market is mostly in green but is starting to show mixed colors with an insignificant average percentage of change.

In the upcoming period, we would be expecting further retracement and sideways movement for the price of Bitcoin until firm support is established.

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General Overview
  • Market Cap: $121,069,557,341
  • 24h Vol: $20,974,199,698
  • BTC Dominance: 52.8%

From last Monday when the evaluation of the cryptocurrency market cap was $113,810,000,000 at the open we have seen it move sideways, hovering around those levels until 6th when it fell to around $111,5B level which was the support line of that range. Like from Monday until Wednesday the evaluation moved sideways for the next two days before finally on Friday it started moving to the upside and it came from those levels up to $122,140,384,213 on the same day.

Looking at the global chart you can see that the evaluation broke out from the descending triangle in which it was correcting on the upside and came above the horizontal support level of the prior range which serves as resistance and has been retesting it for support over the weekend.

One interaction has been made but further interactions are to be expected as the evaluation is most likely going to continue its upward trajectory so there must be a firm establishment of support.

The market is mostly in green today but is starting to show mixed colors with an insignificant average percentage of change. The biggest gainers are in the double digits like MOAC with an increase of 11.56%. Out of those who are in red the biggest losers are Litecoin by 7.2%, Ark by 10% while Quant is down by 14.88%

Bitcoin’s market dominance has been decreasing and has fallen by 1.02% from 53.78% at its highest point on Wednesday to 52.74% at its lowest point yesterday.

News

Last week was followed by an echo of news regarding the death of the Canadian’s cryptocurrency exchange QuadrigaCX founder, Gerald Cotten. The exchange has allegedly lost access to its cold wallets, where most of the funds were held which makes this news story the most significant one.

As reported by Cointelegraph the mentioned cryptocurrency exchange has been surrounded by a lot of controversies as many believe that QuadrigaCX’s cold wallets never existed. It is now a known fact that Cotten normally ran the business from his personal laptop to whom the excess is lost as it was protected by the encryption supposedly only known by Cotten.

Meanwhile, QuadrigaCX has been granted an order for creditor protection in the Nova Scotia Supreme Court. The court granted the exchange a 30-day stay of proceedings (ending on March 7) to search for the missing funds and has appointed the auditing firm Ernst & Young as the monitor.

The suspicion surrounding the matter came from some of the court documents that were cited by the Globe and the Mail showing that Cotten wrote his will only 12 days before his death in which he appointed his wife Jennifer Robertson as his successor while she stated that she could find any document regarding the encryption password for Cotten’s laptop.

Also, an alleged copy of Cotten’s death certificate, issued by the Indian government, recently surfaced on Reddit among the users of concern in which it can be seen that Cotten’s surname was misspelled.

Another major headline regarding this news story came out on Friday as James Edwards, a cryptocurrency analyst, reviewed the publically available transactions of the exchange, and found no evidence that the exchange controlled any of the wallets it claimed to.

He stated:

“It appears that there are no identifiable cold wallet reserves for QuadrigaCX”

According to his reasearch, there were wallets associated with the exchange with larger balances once, but those balances are now very low. Currently, the largest wallet is apparently a hot wallet, which is used for transactional purposes.

This only goes to show how dangerous is to be keeping your cryptocurrency on the exchanges especially for trading purposes as they are so vastly exploited either directly by the owners or are subject to hacker exploitation of their vulnerabilities.

While we are on this subject another headline that is worth mentioning is regarding the vulnerability exploit on the ZCash blockchain

Technical Analysis

BTC/USD

From the start of the week on Monday 4th when the price of Bitcoin was $3506 at the open we have seen at first the price being stuck in a horizontal range from which ti came down to $3430 area which is where its horizontal support was.

This interaction with the horizontal range support level was the ending point of the Z wave from a Minor WXYXZ correction which is why the next impulsive move to the upside started developing.

The price came up from $3430 support to around $3800 at it’s highest point on Friday where the 0.5 Fibonacci level is which was an increase of 10.63% and breaking out from the falling wedge in which the Minor correction has been made. The price interacted with the descending channel which can be clearly seen on the below chart so the price encountered resistance at those levels but judging by the cluster made around there both buyers and sellers are aggressive at this point so we are not seeing an immediate rejection buy more of a struggle for the maintenance of control.

As this increase that started on Friday is most likely the continuation of the impulsive move that lasted until 24th of December we are going to see further increase. The first target would be at the bold black line intersection with the 0.618 Fibonacci level at $3936 but we might see the price headed further up. The bold black line is the baseline support from the start of the bear market and was well respected until 21th of November when it got broken to the downside, so this current correction to the upside is the retest for resistance which already happened on the first wave, so it ending as the second interaction with the mentioned level would only be logical.

But as the Z wave is a higher low compared to the one when the price moved impulsively to the downside breaking the baseline support, we might see the Y wave ending higher than the W wave ending point which is at around $4340.

In the upcoming period, I would be expecting further retracement and sideways movement for the price of Bitcoin until firm support is established after which according to my projection further increase is to be made for the price of Bitcoin.