Crypto newsletter: Bitcoin's market sentiment hits yearly high

• Bitcoin is approaching 12k level
• Ethereum Classic suffers second 51% attack in a week
• Goldman Sachs is considering its own crypto

 

The cryptocurrency market exploded last weekend and almost all of the major coins break above key resistance levels. After breaking above $10,000 Bitcoin continued its move to the upside and only the $12,000 level has stopped the advance for now. Meantime  other major altcoins like Ripple and Ethereum went on a run of their own. Ripple rose over 42% and Ethereum added approximately 26% this week.

Bitcoin's market dominance decreased to 60.9%. The capitalization of all digital assets in circulation increased to almost 358 billion, while an average daily trading volume is registered at $90 billion. Source: Coinmarketcap

 

 Bitcoin sentiment index highest since summer 2019

Bitcoin price this week reached key resistance at $12,000, level not  seen since the August 2019. However, buyers did not manage to break above the aforementioned level and price pulled back to the support at $11,000. On Wednesday the bulls renewed their attack and now the price is again approaching this key resistance level.
However, high market sentiment raises some concerns. Last week The Fear & Greed index has stayed in the “Extreme Greed” area and even touched 80, while during this week returned to “Greed” area. Historically this has been an indication of a market top getting close. However, last time when index was above 80 (June 2019) the bitcoin price rose almost 50% within 10 days before topping out. 

Fear and Greed index reached highest level since summer 2019. Source: Arcane Research.

BITCOIN price is approaching key resistance level at $12,000. Break above could pave a way to a bigger upward movement toward next resistance at $13,000. Many analysts believe that this latest breakout could be the start of a new uptrend forming, but the current economic uncertainty has resulted in a hesitance from investors. However, should market sentiment change, local support is located at $ 11,000. Source: xStation5

 

Ethereum Classic got hit by a 51% attack

For the second time this week, Ethereum Classic has experienced the so-called "attack 51%". Bitquery analysts believe, the hackers took 807 260 ETC (about $5.6 million). Attackers spent 17.5 BTC ($192 000) to get enough hash power for the attack.  The second hack was registered by the operator of mining pool Ethermine Bitfly and Binance. The reorg attack affected 4000 blocks.

Ethereum Classic managed to found some support at the 200 MA (redline). As long as the price sits above it, the upward move looks to be more probable. Local resistance is located at $8.14. However, should sellers regain control,  support at $6.32 could be at risk Source: xStation5

 

Goldman Sachs plans to launch its own cryptocurrency

 

Goldman Sachs is considering the idea of creating its own stablecoin - Mathew McDermott, the new global head of digital assets in the bank told CNBC. Goldman Sachs is interested in promoting innovations based on digital assets and blockchain technology. In bank's opinion, within the next decade we will see a transition to a financial system where all assets and liabilities are on the blockchain.

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