Chart of the Day
The crypto market fell after a promising start to the week. Even in the traditional markets, indices are showing signs of entering buy exhaustion zones after the U.S. Manufacturing Index plunged to a five-year low. It may not be surprising that major digital assets would follow suit, potentially spelling an end to the current bear rally. After several failed attempts to clear the $25k threshold, BTC is moving in the opposite direction to test previous support levels. As of the time of writing, the largest cryptocurrency by market cap is changing hands just above the $24k handle and below the 100-hour moving average, after shedding 3.5% of its market value in the last 24 hours. On the upside, BTC is facing an immediate key resistance near $24.5k. Failure to stay atop this level will likely send BTC further south to test support levels in the $23.5k to $23.7k zone. Bybit blog reports.
On-chain metrics are showing constructive signals as entrants from the 2020-2022 class are weathering what’s possibly their first bearish cycle with great conviction. This cohort of holders has refused to sell at the lows and is seeing their holdings mature into the next age band, as evidenced by the rapidly growing volume of coins in the 1-2 year age band.
In a similar vein, ETH is inching towards the $1,900 mark after posting a 5% decline in the same period. Despite recent declines, the second-largest cryptocurrency by market cap remains well bid above key support levels on the back of growing enthusiasm toward The Merge. Most major altcoins have flipped red, with some L1 tokens leading the correction on a 5% drop over a similar time frame.
Talk of the Town
The crypto industry’s first $1 billion deal, announced in May last year before major digital assets soared to new all-time highs, has come to an abrupt end, just as the market began to recover from a series of implosions. On Monday, Galaxy Digital announced that it has terminated the $1.2 billion proposed acquisition of BitGo, after the crypto custodian failed to provide its audited financial statement for the year 2021 by the stipulated deadline. BitGo has disputed the deadline of the disclosure, and intended to pursue legal action and seek $100 million or more in damages from Galaxy Digital for pulling out of the deal.
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