Bitcoin (BTC) continued to trade sideways, prompting discussions in the cryptospace on whether the market is experiencing a dip, correction, start of the bear cycle, or a new market reality.
The biggest cryptocurrency traded between $56,000 and $58,000 in London morning hours.
Alghoritmic forecasting website Wallet Investor puts the cryptocurrency king’s current support levels between $55,062.10 and $51,886.00; and resistance range between $58,238.20 and $61,414.30.
Analyst and founder of cryptocurrency education platform Eight, Michaël van de Poppe, said bitcoin still have some space to sink further while still remaining in a bull cycle: “As long as bitcoin’s price sustains above $43,000–47,000, the market can continue in a bull cycle, and, as a matter of fact, in the lengthening cycle that we think we could be seeing.”
He dismisses recent concerns about bitcoin falling below $60,000. “The price of Bitcoin has dropped beneath $60,000, as a result of the recent correction. Through this, the all-time high resistance of May 2021 didn’t flip as support, but that isn’t a bad thing for the markets overall,” van de Poppe adds.
Other crypto news:
- Twitter chief executive Jack Dorsey is moving ahead with his ambition to make bitcoin the internet’s currency. In February, Dorsey and rapper Jay Z created an endowment to fund bitcoin development mainly in Africa and India, with 500 bitcoin (BTC) or some $28.3m (£21.1m). Today, Dorsey provided an update on the search for three trust’s board members, whose mission will be to make bitcoin the internet’s currency. The process narrowed to six candidates from initial 7,000 applicants.
Quote of the day: “The 200-bitcoin question”
Carolyn Wilkins, an external member of the Bank of England’s Financial Policy Committee, during her keynote address at the annual meeting of the Autorité des marchés financiers.
“The 200-bitcoin question is how successfully DeFi will ultimately compete with CeFi and traditional finance. When I refer to ‘traditional’, I am referring to a system that has fiat at the core, and relies on intermediaries and trusted third parties, including central banks. The advantage of this is an ability to see who you are dealing with and who is accountable.”
Chart of the day: Sandbox stormed into top 50 coins after adding over 100% week-on-week
Round-up of coins by market capitalisation
As of 10:0 UTC:
Winners and losers:
- Sandbox (SAND) is 120.18% week-on-week, according to CoinMarketCap.com, and jumped ten positions in ranking of the biggest cryptocurrencies in just a day. The coin is currently 41st biggest coin by market cap, whereas it was 51st yesterday this time around
- Shiba Inu (SHIB) is down 10.90% week-on-week, making it the second biggest weekly loser of the top 50 digital tokens.
Read more: Bitcoin slips in early Asia trade to $56,500
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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