Another firm speculated to be on the brink of bankruptcy is digitalasset brokerage and lender Genesis, a subsidiary of Digital Currency Group (DCG). Bloomberg news reported on November 22 that Genesis was finding it difficult to raise fresh capital and warned investors of a potential bankruptcy if efforts failed. Genesis was reported to be seeking a capital infusion of at least $1 billion for the past several days but had not met with any success. However, a representative of Genesis denied that it was planning to “file bankruptcy imminently,” as it was having “constructive conversations with creditors.”
The denial does not seem to have calmed the market’s concerns as DCG’s Grayscale Bitcoin Trust, which is one of the largest holders of Bitcoin, has seen the discount between the value of its holdings and the spot price of Bitcoin widen to about 50%.
Bitcoin remains stuck inside the range between $15,512 and $17,567.45 as projected in the previous analysis. The BTC/USD pair dipped marginally below the support on November 21 but the bulls managed to defend the $15,512 level on a closing basis. Although the downsloping moving averages indicate advantage to bears, the relative strength index (RSI) is attempting to form a positive divergence.
This suggests that the selling pressure could be waning. However, during a bear phase, positive divergences tend to fail several times. A weak rebound off the current level could indicate a lack of aggressive buying by the bulls.
That may increase the likelihood of a break and close below $15,512. If that happens, the pair could resume its downtrend. The first support on the downside is $13,456 and thereafter $12,000. The first sign of strength will be a break and close above the breakdown level of $17,567.45. Such a move could suggest that the downtrend could be ending. The pair could then rally to the psychological level of $20,000.
Lastly please check out the advancement’s happening in the cryptocurrency world.
Enjoy the issue!
FEATURING IN THIS WEEKS EDITION
– Uno Farm
– Straw Hats Club
– XRP Junkies
– Ecudor Token