Not much has changed in the cryptocurrency world since my last newsflash note, except that the latest craze in this space is a thing called “Stablecoins”?
“Stablecoins” are cryptocurrencies that are backed by an asset, which can be reserved-backed or algorithmic. In being backed by an asset the “Stablecoins” remain stable in relation to conventional fiat currencies or assets. These projects have been on the rise over the last 18 months as adopting cryptocurrencies as transactional currencies prove to be difficult due to the constant volatility.
Currently Tether (USDT) is the most adopted “Stablecoin” in the cryptocurrency space as each digital token of Tether is supposedly backed by a physical U.S Dollar (USD).
Looking at the chart of Bitcoin
There is an interesting pattern starting to form on the price action of Bitcoin and we might see a breakout soon. When looking at the daily chart below we can see a triangle forming with a base of support at $6120. We might see the price action breakout in either direction from this pattern.
Chart Source: MetaTrader 5
Looking at the chart of Ethereum
Looking at the chart of Ethereum below we can see not much has changed since our previous note as the price action is still in a downtrend. We need the price to close above the resistance line of $251 per coin for the bulls to take control. The current price actions look like it wants to roll over and continue its downward momentum.
Chart Source: MetaTrader 5
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