Crypto Industry News:
The panic caused by the UST peg tearing apart is spreading more and more. However, while the algorithmic TerraUSD stablecoin has always been a risky one, most investors still see Tether (USDT) as a safe haven.
The problem is that in the current situation even Tether is starting to struggle to maintain the peg. Although at the time of writing the rate was again close to the dollar ($ 1 USDT is $ 0.997269), it had dropped to $ 0.980950 a few hours ago.
Why are investors willing to use stablecoins?
Confusion in the stablecoin market is very bad for the industry as a whole as the vast majority of investors regularly go to USDT, BUSD, USDC and other digital dollars rather than fiat currencies. Thanks to this, they can make profits, and at the same time exchange cryptocurrencies for stable, they do not have to worry about taxes. In addition, there are numerous solutions that make it possible to earn stablecoins passively, and the interest rate definitely exceeds what banks currently offer.
Technical Market Outlook:
The BTC/USD pair has bounced from the swing low made at the level of $25,367 after the Pin Bar candlestick was made at the end of the down move. The bulls keep trying to bounce higher and are currently trading back above to $30,000. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen at the level of $20,000. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact.
Weekly Pivot Points:
WR3 - $43,590
WR2 - $41,841
WR1 - $37,271
Weekly Pivot - $35,409
WS1 - $31,101
WS2 - $29,209
WS3 - $24,500
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support is seen at the round psychological level of $20,000.
