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Bitcoin poised around $41k amid fresh risk-off sentiment

Bitcoin (BTC) was holding above $41,000 on Monday evening following an intraday dip towards the $40k support as risk-off sentiment returned to the market.

After rallying to highs of $42,250 over the weekend, bulls found it difficult to sustain the momentum.

Marcus Sotiriou, an analyst at UK-based digital assets broker GlobalBlock said on early Monday that the retracement in BTC price was down to “fears surrounding the Russa-Ukraine war.” 

He pointed to heightened threats from Russia about the situation in Ukraine’s city of Mariupol and reports of mercenaries seeking to assassinate President Zelensky as major concerns.

“These events have lead to a risk-off sentiment for global markets this morning, as the Dollar Index climbed whilst Bitcoin and equities sold off,” Sotiriou said in a note as Bitcoin struggled below $41,000.

BTC slips after Fed Chair comments

Market deals late Monday had more than $20 million in BTC longs liquidated, with most of the pain coming after comments from US Federal Reserve Chair Jerome Powell reached the market.

In his remarks at the National Association for Business Economics, Powell stated that the Fed was ready to initiate an aggressive approach towards addressing inflation.

The Fed Chair noted that the central bank could go for a 50 basis points rate hike as soon as May, jolting risk-off sentiment among investors. As Wall Street posted a negative reaction, a similar move materialised across the Bitcoin market to see BTC slip to lows of $40,600.

It means bulls are still finding it hard to flip the immediate resistance levels around $42k-$44k into support. Taken the other way round, it suggests bears still hold the upper hand around these supply zones.

A ‘healthy’ pullback but bulls must need to hold $40k

Mikkel Morch, Executive Director at digital asset hedge fund ARK36 remains bullish on BTC though, noting in a comment that the retracement appears to be a “healthy” pullback following last week’s upside.

“Even though Bitcoin has retraced a bit after tagging $42K over the weekend, it still managed to close the week well above $40K and is currently holding the $41K levels. Such a retrace seems healthy after a notable move up over the past week,” he noted.

Pseudonymous crypto analyst Credible Crypto thinks Bitcoin will need to break above $42,500 to have a better chance of rolling higher. If that fails, he predicts a scenario where the main support would be in the $29k-$32k zone.

It’s a perspective Morch also sees developing if buyers do not hold above $40k for a continuation move. However, he is optimistic of a rebound to the recent high, with a breakout above the weekly barrier likely to bring into focus the target at $46k.

“As long as BTC stays above $40K, there is a good chance of continuation. However, we can only hope for a more sustained leg up if the bulls manage to reclaim the resistance at $46K. Until then, the choppy short term movements may still continue for some time,” added the hedge fund manager.

Bitcoin was trading around $41,008 late Monday.  

The post Bitcoin poised around $41k amid fresh risk-off sentiment appeared first on Coin Journal.

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Why Loopring could test $1 soon

  • Loopring and other Ethereum layer-2 solutions are set to explode as Eth 2.0 is now close to becoming fully operational.

  • Loopring has an edge for its Zk Rollups that make transactions safe and faster.

  • Loopring is currently trading in a bullish channel despite the high volatility.

Ethereum developers have made huge progress towards the launch of Ethereum 2.0. By mid-year, the transition is expected to be complete. It is expected that the impact on Ethereum’s price will be huge because gas fees will drop, and Ethereum will handle a lot more transactions per second than it can today. 

The best part is that Eth2.0 will also open up many opportunities for layer 2 solutions. Layer 2 solutions will take a more central role in completing Ethereum-based transactions to get the load off the Ethereum mainnet. One of the projects set to benefit the most from the shift to Ethereum 2.0 is Loopring.

Loopring (LRC) is a decentralized exchange that can be used to trade ERC tokens without having to go through the Ethereum mainnet. Since Loopring uses Zk Rollups, transactions are fast and take a fraction of the cost that they would, were they to be completed on the Ethereum mainnet.

Loopring has been growing in popularity, and with Eth 2.0 almost complete, a lot more transactions will go through Loopring. Loopring is already showing positive signs, and in the past week, when the entire market was turning bullish, Loopring rallied by over 20%. It’s an indicator that once bulls gain control again, LRC could be a winner. 

Loopring trading in a bullish channel 

Source: TradingView 

Since March 18th, Loopring has been trading in a bullish channel, despite the volatility in the broader crypto market. Currently, Loopring is trending towards the 50-day MA resistance at $0.848. If it breaks through this resistance, $1 could be within reach pretty soon.

Summary

Loopring and other layer-2 solutions are set to grow as Eth 2.0 edges closer to completion. Loopring is already showing signs of an uptrend as it continues trading in a bullish channel despite the volatility.

The post Why Loopring could test $1 soon appeared first on Coin Journal.

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Convex Finance could test $25 soon – The price action is bullish

  • Convex Finance rallies as more DeFi protocols integrate it. 

  • Convex is also benefiting from increased bullish momentum in the broader market. 

  • Convex has broken through a key resistance level, indicating rising bullish momentum. 

Convex Finance (CVX) has been one of the best cryptocurrency performers in the last 24-hours. This was triggered by the growing number of projects that are integrating Convex and offering investors a chance to earn a passive income off their Convex tokens.

For instance, On March 16th, Rari Capital announced the launch of the Tribe Convex Pool. This pool leverages some of the latest technologies, such as Flywheel and ERC-4626 plug-ins. Thanks to these technologies, investors will be able to use their Convex Finance tokens as collateral in the Fuss protocol when borrowing.

This came just days after another protocol, Enzyme, announced that Enzyme users could now use Convex to stake their Curve Finance tokens and grow their earnings. This is a big deal as it has increased the number of investors using Convex, which could translate to higher prices in the long run.

However, it is not just the integrations driving investor interest in Convex Finance. Convex is also in a market currently on an exponential growth path. DeFi is on a growth trajectory as investors take advantage of the space’s passive income opportunities. This means projects like Convex Finance, which offers investors a chance to increase their bags without trading, will only get more popular.

Convex is particularly interesting to investors because it is a relatively new project with a relatively small market cap. This means it has the potential to give an above-average return once the market turns bullish again.

Convex Finance breaks through key resistance

Source: TradingView

Convex Finance has been on an uptrend since March 20th, and bullish momentum is rising. Bulls are so strong that, Convex has broken through $20.26, a price level where it experienced significant resistance over the weekend. If it sustains the current momentum, then $25 would be within reach in the short term. 

Summary 

Convex is gaining momentum after a series of critical integrations with multiple DeFi protocols. Convex Finance is also benefiting from growing interest in DeFi, and the fact that bullish momentum is on the rise in the broader market.

The post Convex Finance could test $25 soon – The price action is bullish appeared first on Coin Journal.

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Shiba Inu breaks 100-day MA resistance: Can bulls sustain momentum?

  • Shiba Inu is trading in the direction of Bitcoin and the broader market. This is a good indicator as buying volumes are rising across the market.

  • Shiba Inu also has the support of its growing fundamentals, such as its Metaverse project.

  • Shiba Inu has already crossed the 100-day MA resistance, a pointer to rising buying volumes. 

Shiba Inu (SHIB) made history in 2021 after it recorded gains of 48,000,000% just a year after launch. Today, anyone who put in just $100 in SHIB in early 2021 is a multi-millionaire. However, with the market heavily bearish, it is only natural to wonder, is SHIB still a good investment in 2022? The answer is yes. 

Like the rest of the market, Shiba Inu prices have been depressed for the past few months, so it is nothing unique to Shiba Inu. Besides, Shiba Inu’s price has been moving in tandem with the rest of the market, so you can expect SHIB to rise if the broader market gains upside momentum.

The best part is that bullish momentum seems to be on the rise in the broader market. For instance, Bitcoin has been gaining upside momentum in the last few days. While buying volumes are still relatively depressed, Bitcoin has managed to hold above the $40k support. This has also seen SHIB, and a host of other altcoins, gain upside momentum as well. If Bitcoin takes off from its current price, SHIB could rally as well. 

Besides, the Shiba Inu team is working hard to add to the project’s intrinsic value. For instance, the team is currently building a Metaverse, a factor that will significantly add to the intrinsic value of SHIB going into the future. 

SHIB breaks the 100-day MA resistance

Source: TradingView

In the last 24-hours, SHIB has been in a bullish reversal and has pushed through the 100-day MA resistance at $0.00002284. If bulls can sustain momentum and push through the 50-day MA at $0.00002348, Shiba Inu easily hit prices above $0.00002700 in the short term. 

Summary

With buying volumes rising in the broader market, Shiba Inu has good prospects of rallying in the short term. Besides the price action, the Shiba Inu team is working on a Metaverse, which could help drive up the value of SHIB long term.

The post Shiba Inu breaks 100-day MA resistance: Can bulls sustain momentum? appeared first on Coin Journal.

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India’s crypto tax law clarification is ‘a step backwards’, says CEO of CoinSwitch

India’s proposed crypto taxation law will take effect on 1 April this year.

Ashish Singhal, the co-founder and CEO of India’s largest crypto exchange CoinSwitch Kuber, says the country’s crypto tax law signals a “step backwards.”

Singhal expressed his disappointment on Monday following clarification from authoirities regarding a crypto tax law that’s set to take effect on 1 April 2022.

India announced its cryptocurrency tax law in February, revealing a 30% tax levy on any digital asset transfer. There was also to be 1% deduction applicable to all crypto payments, with this levied at the source.

While the crypto community pointed out the high taxes, it acknowledged the country’s ‘recognition of cryptocurrencies’. But on Monday, most crypto investors were shocked by the Ministry of Finance’s clarification notice.

According to the ministry, India will look to tax each crypto investment separately, reiterating the fact that gains in one investment cannot be used to offset losses in another. It also specified that infrastructure costs related to crypto mining will not count as cost of acquisition.

It’s „detrimental“ to crypto investors

The founder of crypto news platform Coin Crunch India summed the community’s frustrations in his tweet.

“This is detrimental for India’s crypto industry and the millions who have invested in this emerging asset class,” the CoinSwitch CEO noted of the Finance Bill 2022.

He added that India had “taken a step backwards,” in reference to the February Budget Bill that had “recognised virtual digital assets (VDAs) as an emerging asset class.”

He said he expected the country to have progressively worked towards ensuring crypto regulations were “at par with other asset classes.”

He also opined that such regressive provisions being applied to the equities market would definitely discourage retail investors. It is a scenario he believes could materialise in the burgeoning crypto investment community.

“We fear the lack of provision to offset losses will drive away users from KYC-compliant exchanges and platforms to the underground peer-to-peer grey market, which would defeat the purpose of the tax,” he said.

The post India’s crypto tax law clarification is ‘a step backwards’, says CEO of CoinSwitch appeared first on Coin Journal.