Daily Market Outlook and Thoughts: February 10

Daily Market Outlook and Thoughts: February 10

Author: James Soplin

Daily Market Outlook and Thoughts: February 10

#BTC (daily chart). Events are developing according to the scenario discussed in yesterday's review, bitcoin is slightly below the 0.618 Fibonacci correction level ($21,543), at $21,625 buying of the instrument has begun, but trading volumes are still below average, which may mean the asset correction continues. To strengthen the buyers' positions, the price should consolidate above the exponential moving average EMA 21 D ($22,300). If this does not happen, bitcoin will continue to decline.

The likely reversal zone of the price movement is a buyer's block in the area of $20,800 - $21,000, which corresponds to the Fibonacci correction level of 0.786 ($21,042). The level of dynamic support - EMA 50 D is also passing in this area, which increases the chances of the price bounce from this zone. The nearest target of the upward movement will be the resistance level, which coincides with the January POC - $23,000.

#ETH. The stock lost the support level of around $1,600 and went down to $1,525. The price needs to go back above $1,600 for the upside movement to develop. Over the past 24 hours, ether decreased its value by 1.6% against #BTC.

The company-issuer of #USDT stablecoin at the end of October-December recorded a net profit of $700 million, which follows from the quarterly financial report of the organization (1). At the same time, representatives of Tether stated that they will direct the profit received for the last quarter of 2022 to the reserves of the stablecoin.

The document notes that Tether had just over $67 billion in total assets under management as of December 31, 2022, with just over $66 billion in liabilities, meaning that it had about $960 million in excess reserves.

#USDT remains the most used stablecoin in the industry, with the stablecoin's capitalization up another $5 billion from the end of November 2022 to today, according to Tradingview, indicating that Tether is strengthening its position. Interestingly, the $700 million profit was made by the company at a time of significant volatility in the cryptocurrency market due to the bankruptcies of major industry players. I believe that it is this kind of revenue figure that pushes large blockchain networks to promote their own stablecoins, which is what Binance is doing, and what Cardano, which recently launched the algorithmic stablecoin Djed, is aiming for.

Alts: the addition of a new pool of liquid stacking to the Pendle platform (#PENDLE) has caused #PENDLE to grow by 25% (to #USDT).

The victory of MarsDAO (#MDAO) in the voting for the listing on the Bybit exchange led to an increase in the price of #MDAO by 20% (to #USDT).

Integration of BENQI (#QI) with Chainlink oracle network led to #QI price increase by 18% (to #USDT).

U.S. stock indices ended Thursday's trading lower amid rising government bond yields and market concerns over further increases in the prime rate. At the closing bell on the New York Stock Exchange, the Dow Jones was down 0.73%, the S&P 500 Index was down 0.88% and the NASDAQ Composite was down 1.02%.

The cryptocurrency market capitalization is down 4% in the last 24 hours, with bitcoin dominance adding 0.15%. For the S&P 500 index, I expect a descent to the support level around $4,000 with a subsequent rebound from it, which will mark a reversal of the local trend for #BTC as well.

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