The past week started with strength in the price of Bitcoin. Bulls managed to push the price to another multi-month high, as it hit the 52,920$ on Monday. Having peaked, the price started to slowly reverse its course, which was followed by a sharp decline all the way to the support at 42,843$ in price. Such vast sell-offs are something that I think the crypto community has already got used to. My take on a catalyst for such action is the same as regularly. There were a lot of stop losses and liquidations getting triggered, and the cumulative selling resulted in a sharper and sharper decline that squeezed people out of their positions. The cascade eventually slowed down as the buying pressure increased. When the price touched the support line, where the buyer demand overwhelmed the seller demand, we could witness a bounce, which pushed the price back into the 45,000–47,000 range. The sell-off in Bitcoin initiated an even sharper decline in a great majority of altcoins, with few exceptions.
Despite crypto bulls saying that having overcome the Bitcoin flash crash gives investors a great opportunity to buy more, it seems like they are still rather reluctant in this uncertain environment. It’s not just a crypto phenomenon, as investors in the conventional markets have also shown signs of fear. A reason could lie in hotter than expected inflation numbers, which might lead investors into thinking that the Fed will spike up rates and slow down the economy. Otherwise, looking purely at the technical picture, Bitcoin either has to climb back above 47,000$, which would probably result in another rally or retrace back to 42,000$ and bounce towards higher prices from there.
As for us at NewsCrypto, the most important event to mention is the partnership with Elrond on Wednesday. Since I believe that scalability and speed are the two factors that drive us towards mass adoption, I am really pleased to announce we’ll move forward hand in hand with a key innovator in these two spheres. Having been first to implement sharding, Elrond continued being on a cutting edge of innovation by developing the most advanced solutions for insanely high throughputs, without sacrificing sustainability. As a result of our partnership, users will get a new educational material about scalability, sharding and sustainability in our educational section. Investors will be able to get NWC tokens on the Elrond blockchain and we’ll provide new solutions for bringing capital into the network and broadening its already rapidly growing scope of DeFi protocols.
Another important news item I have to share with you is an update on NWC Airdrop. As you already know, we’ve decided to reward our token holders with an Airdrop of 200,000 NWC. Those of you, who had held more than 1000 NWC tokens on NewsCrypto mobile wallet between 24th August and 31st will receive 4,6% of your eligible balance in rewards. In addition to that, 30 lucky winners will also receive 200 NWC each. Since, the team will double-check everything just in case, you can expect to receive rewards by the end of September. In case you have any questions don’t hesitate to contact our team here.
That sums it up. Wish you a great following week regardless of what happens in the markets. Looking forward to writing to you next week!