The cryptocurrency market lost approximately $45 billion during the last seven days after hitting multiple resistances across the major cryptocurrency pairs.
Bitcoin erased 5.4 percent of its market cap for the period and moved further away from the critical monthly resistance at $23,300. The 24-hour trading volumes remained above the average for the last 14 days, but the BTC/USDT pair was in a desperate need of a pullback to ensure a proper consolidation is in place.
The price is still floating above both the last weekly high and the 21-period EMA on the weekly timeframe chart. It is also worth noting that the formed mid-term diagonal resistance could start acting as support if the zone around the mentioned high ($21,200-$20,600) provides the required stability.
The huge green candle from the week of January 9 was filling the gap that was formed during the first week of November, 2022, so the price is probably not looking for imbalances to cover at this point.
On the other hand, BTC has been lacking bullish momentum lately and the market structure might not support further increase until the monthly resistance is surpassed.
United States Securities and Exchange Commission investigating Paxos, issuer of BUSD, the native stablecoin of the Binance exchange.
The majority of the altcoins are registering double-digit loses today in the aftermath of the news that the third biggest stablecoin in the world is under investigation. Paxos announced it will stop issuing BUSD which resulted in the coin losing its peg against both competitor stablecoins USDT and USDC
The biggest and most popular altcoin – ETH is also under immense pressure after suffering a rejection at its monthly resistane near $1,690. It has corrected its price by 12 percent since then and it is currently flirting with the dynamic resistance of the short 21-period EMA on the weekly timeframe. Next support will most probably be around the $1,350-$1,280 area, which has previously acted as a Point of interest and where a high volume trading was recorded.
BabyDoge, another dog meme coin has been making waves lately thanks to the continues support from Elon Musk. The Tesla founder who is an avid Doge supporter wore a Dogecoin t-shirt during last night’s SuperBowl LVII
Baby Doge rallied 18 percent up since then and is now the third largest meme coin
Last but not least:
The popular Layer 2 chains Arbitrum and Optimism continue their expansion. The two are once again the fastest growing chains on the Top 10 list on DeFi Llama for the last seven days and also on a monthly basis.