New crypto exchange, Bitcoin ETFs, and $30,000 price tag
アップデート済
Today, we prepared for you a concise article about a new cryptocurrency exchange backed by the U.S. trading giants, Bitcoin ETFs, and a market wrap-up.
EDX Markets
Within the past few days, you might have caught the news about a new cryptocurrency exchange backed by big names like Citadel Securities, Sequoia Capital, Charles Schwab, Fidelity Digital Assets, and Paradigm. Named EDX Markets, this new cryptocurrency exchange was announced in September 2022 and went live only last week. Some media news outlets touted it as a huge “game changer” for the industry and even a potential “threat” to other cryptocurrency exchanges like Coinbase and Binance. Though, there are multiple differences between EDX Markets and other “traditional” cryptocurrency exchanges. The first significant distinction is that EDX Markets accepts only institutional investors and does not offer any direct retail accounts (as a matter of fact, in 2022, retail was responsible only for about 20% of the trading volume at Coinbase). Second, the exchange does not offer a “custodian” model, which means that it does not hold clients’ digital assets during trading (a third party holds these assets). In addition to that, it does not offer any front-end or trading application; the trading access is through the API. Unlike many other cryptocurrency exchanges, EDX Markets lists only a handful of tokens for trading, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash; this small selection of tradeable assets, together with the non-custodial structure, is designed to help the exchange to comply with the regulation, mitigate conflict of interest, and reduce the risk of losing or misusing assets. That, in turn, could help EDX Markets attract institutional investors seeking a trustworthy, compliant, and strongly-backed platform.
Bitcoin ETF
Earlier this month, BlackRock, the world’s biggest asset manager, filed for Bitcoin spot ETF with the Securities Exchange Commission (SEC) in the United States. According to the prospectus, iShares Bitcoin Trust seeks to track Bitcoin’s performance and employ Coinbase Custody Trust Company, LLC as a custodian of digital assets. If approved, it will be the first spot Bitcoin ETF in the United States. Though BlackRock is not the only established corporation trying to capitalize on the opportunities in the world of cryptocurrencies and ETFs. WisdomTree and Invesco quickly followed BlackRock’s move and filed for their own Bitcoin ETF products. In addition to that, the SEC approved 2x leveraged Bitcoin ETF last Friday. This product, called Volatility Shares 2x Bitcoin Strategy ETF, is scheduled to launch trading tomorrow.
Market wrap-up
Bitcoin marked a new high at $31,458 on Friday. Then, over the weekend, it erased some of its gains and retraced toward $30,000. At the same time, volume declined significantly, being accompanied by the decline in the number of large holders (wallets with more than +100 Bitcoins and +1,000 Bitcoins in the balance) in the past three days (suggesting that big players might be securing profits near the elevated price tags). As a result, we remain on high alert and closely monitor the situation.
Illustration 1.01
Illustration 1.01 shows the daily chart of BTCUSD. With the rally, Bitcoin’s price deviated too far from its 20-day and 50-day SMAs, making a compelling case for the price retracement toward these levels. If Bitcoin falls below $30,000, it will be bearish.
Illustration 1.02
Illustration 1.02 displays the daily chart of BTCUSD’s RSI. The yellow arrow indicates a bearish crossover below 70 points.
Illustration 1.03
Illustration 1.03 portrays the current setup for BTCUSD, with short trade entry coming after a breakout below $30,000 (requiring tight stop-loss placed above this level).
Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
EDX Markets
Within the past few days, you might have caught the news about a new cryptocurrency exchange backed by big names like Citadel Securities, Sequoia Capital, Charles Schwab, Fidelity Digital Assets, and Paradigm. Named EDX Markets, this new cryptocurrency exchange was announced in September 2022 and went live only last week. Some media news outlets touted it as a huge “game changer” for the industry and even a potential “threat” to other cryptocurrency exchanges like Coinbase and Binance. Though, there are multiple differences between EDX Markets and other “traditional” cryptocurrency exchanges. The first significant distinction is that EDX Markets accepts only institutional investors and does not offer any direct retail accounts (as a matter of fact, in 2022, retail was responsible only for about 20% of the trading volume at Coinbase). Second, the exchange does not offer a “custodian” model, which means that it does not hold clients’ digital assets during trading (a third party holds these assets). In addition to that, it does not offer any front-end or trading application; the trading access is through the API. Unlike many other cryptocurrency exchanges, EDX Markets lists only a handful of tokens for trading, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash; this small selection of tradeable assets, together with the non-custodial structure, is designed to help the exchange to comply with the regulation, mitigate conflict of interest, and reduce the risk of losing or misusing assets. That, in turn, could help EDX Markets attract institutional investors seeking a trustworthy, compliant, and strongly-backed platform.
Bitcoin ETF
Earlier this month, BlackRock, the world’s biggest asset manager, filed for Bitcoin spot ETF with the Securities Exchange Commission (SEC) in the United States. According to the prospectus, iShares Bitcoin Trust seeks to track Bitcoin’s performance and employ Coinbase Custody Trust Company, LLC as a custodian of digital assets. If approved, it will be the first spot Bitcoin ETF in the United States. Though BlackRock is not the only established corporation trying to capitalize on the opportunities in the world of cryptocurrencies and ETFs. WisdomTree and Invesco quickly followed BlackRock’s move and filed for their own Bitcoin ETF products. In addition to that, the SEC approved 2x leveraged Bitcoin ETF last Friday. This product, called Volatility Shares 2x Bitcoin Strategy ETF, is scheduled to launch trading tomorrow.
Market wrap-up
Bitcoin marked a new high at $31,458 on Friday. Then, over the weekend, it erased some of its gains and retraced toward $30,000. At the same time, volume declined significantly, being accompanied by the decline in the number of large holders (wallets with more than +100 Bitcoins and +1,000 Bitcoins in the balance) in the past three days (suggesting that big players might be securing profits near the elevated price tags). As a result, we remain on high alert and closely monitor the situation.
Illustration 1.01
Illustration 1.01 shows the daily chart of BTCUSD. With the rally, Bitcoin’s price deviated too far from its 20-day and 50-day SMAs, making a compelling case for the price retracement toward these levels. If Bitcoin falls below $30,000, it will be bearish.
Illustration 1.02
Illustration 1.02 displays the daily chart of BTCUSD’s RSI. The yellow arrow indicates a bearish crossover below 70 points.
Illustration 1.03
Illustration 1.03 portrays the current setup for BTCUSD, with short trade entry coming after a breakout below $30,000 (requiring tight stop-loss placed above this level).
Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
ノート
The number of addresses with more than 100 coins in the balance continues to decline as Bitcoin attempts to take hold above $30,000. That raises a concern for us as we saw the same development during April 2023, when whales sold their holdings to retail once Bitcoin broke above $30,000. Therefore, we monitor the situation very closely.ノート
Volume can be seen declining after Bitcoin made a new high above $31,000. That is not particularly bullish, as it may suggest that fewer buyers are willing to buy the asset at such a high price tag. ノート
Overnight, Bitcoin attempted to retake its recent high. However, it quickly failed and retraced toward the $30,750 price tag. Despite the low volume and other worrying signs, there is still a chance of further upside. If resistance at $31,458 is taken out, it will open the door to $32,000-$33,000. Below is the 1-minute chart showing the attempt and subsequent failure. 
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