This morning we witnessed a new 48 hour low as Bitcoin failed to break out of its bearish channel. It appears that it will remain in recovery mode through another North American night/Asian day of trading. The last two days have supplied more than ample opportunity for day traders, with consistent, predictable volatility to fuel profits.If Bitcoin continues this trend much longer it will approach the long term moving average (seen briefly, bottom right above) at roughly $8,000. This support will double as psychological support and should hold, barring any FUD. Of course nothing is preventing it from breaking out before then, it just has yet to happen.
What’s Going on With Tether?
Skepticism among the crypto community toward Tether continues to fester. It has completely brushed off requests and pleas to submit to an audit, or at least provide some sort of proof that it holds 1 USD in reserve for each USDT issued as it claims. The issue cannot be put to rest until that happens. If Tether does not have a 1:1 escrow set aside, one heavy selloff could make it painfully obvious. Historically, as the market pulls back, investors buy USDT for safety to wait out the pullback allowing them to easily buy back in at a more opportune time. If Tether cannot supply the requested funds, the entire house of cards would self-destruct.
Adding to the worry, Tether was recently hacked for nearly $31 million, proving its treasury to be less-than-secure. Investors will begin to lose faith if they do not pull their act together. For now, the incident has blown over due to acceptable handling of the situation, but transparency is paramount at this point. We want answers.
Altcoins have been trading mostly in line with Bitcoin with few exceptions. A few have lagged behind, creating attractive buying opportunities (i.e. Ether and NEO), while others have torn higher on unstoppable buying pressure (Dash and Cardano). It’s an exciting time to be alive ladies and gents — happy trading!
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