Bitcoin – BTCUSD
Bitcoin prices are trading lower today as the market takes a breather from last week’s bull run. Despite the report by JPMorgan on the increased institutional demand for BTC, there has been some negative news as well. Investors in crypto lending platform Cred are demanding answers after the platform filed for Chapter 11 Bankruptcy protection in the Delaware Bankruptcy Court.
A press release from the company says the action is to enable the exploration of what it called “strategic alternatives” as part of a court-supervised process. The filing comes as the company incurred debts that far exceeded its assets of $50 – $100 million.
This case underscores the risks that come with the launch of new and mostly unregulated decentralized finance products. These products, much like the ICOs that preceded them, have largely flooded the market to take advantage of the DeFi boom of 2020. The DeFi market drop of October led to severe losses on several DeFi contracts, with some tanking by as much as 70% as the dip in Ethereum prices severely impacted the market.
The 4-hour chart presents an evolving double top pattern, after two successive tops at the 15,822.71 price level. A breakdown of the neckline at 14659.98 is required to complete the pattern. This move would open the door for a retreat towards 14371.78, with 14083.58 and 13809.27 lining up as additional support targets.
On the flip side, a neckline bounce could allow bulls to come into the picture once more, targeting 15206.56, with 15822 and 16000 (psychological resistance) coming into the picture as well.
