Cryptocurrency markets suffered major crashes during the past week. After closing just above the 21-week exponential moving average (EMA) in the final hours of last week, Bitcoin plummeted to new lows, reaching the $30k level on May 26, 2021. Hundreds of thousands of traders had their positions liquidated in one of the biggest crashes in Bitcoin’s history, the premier cryptocurrency having formed a large head-and-shoulders pattern stretching back to early March. On May 21, 2021 the Chinese ban on Bitcoin mining activities sent further panic throughout the markets, with a large dip in crypto asset prices resulting in further bearish sentiment. Crypto markets tumbled further on May 23, 2021 confirming an emphatic close of the Bitcoin weekly candle below the 21-week EMA, for the first time since late February last year, which came just before the infamous cryptocurrency market crash the following month, when entire financial markets and asset classes plummeted due to the economic crisis triggered by the coronavirus pandemic.
As cryptocurrency markets crashed, EOS reached new lows not seen since the beginning of its ascent in March, as it reached prices under $3.6 per token. It is currently settling just above the $5 support zone and now seeks to recover some of the losses it suffered in the market. Like Bitcoin, it had also formed a head-and-shoulders pattern, albeit in a smaller time period prior to the initial crash last week, falling initially to about $4 per token after breaking the support of $8.8 on May 19, 2021.
Additionally, exchange tokens such as Binance Coin (BNB) and Kucoin Token (KCS) also suffered heavy losses over the past week. BNB fell by over 70%, suffering a stunning drop from a high of $700 per token to about $211, before reclaiming some support over $275. The fall marks a return to levels last seen in March, when it had consolidated for over a month and rocketed after breaking the critical $275 resistance level. Similarly, KCS experienced a drop to levels not seen since March, twice bouncing off the support at $5.3 per token, after breaking the strong support at $10.5. It had also consolidated in February and March prior to its previous rise after breaking the $5.3 level, and will now attempt to stay above this support and recover some of the heavy losses it accumulated during the current market dip.
(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.
ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)
