Tether Reassures Clients Celsius Loan Had No Impact On Its USDT Reserves; plus our weekly BTC and ETH analysis
- Tether Reassures Clients Celsius Loan Had No Impact On Its USDT Reserves
- Bitcoin/USD – BTC Range Bound
- Ethereum/USD – ETH Mirrors BTC
Tether Reassures Clients Celsius Loan Had No Impact On Its USDT Reserves
Stablecoin Issuer Tether has recently announced it liquidated a BTC loan to crypto lending firm Celsius, & its investment in Celsius had no impact on USDT reserves. While the issuer did not specify an exact dollar amount, it stated that it managed to settle the loan without any incurring losses.
“This process was carried out in a way to minimize as much as possible any impact on the markets and in fact, once the loan was covered, Tether returned the remaining part to Celsius as per its agreement,” the statement read.
Rumors of Celsius’ insolvency began to circulate last month after the lender was forced to pause withdrawals due to extreme market conditions. Tether denied a rumor last month stating that its commercial paper portfolio was 85% backed by Chinese or American commercial paper.
Tether said this was “completely false and likely used to induce further panic.” Exposure to a failing crypto company would have further raised investor’s eyebrows, hence the announcement reassuring its clients. Tether stated it has never and will never put the integrity of its reserves at risk.”
Bitcoin/USD – BTC Range Bound
BTC Daily Chart
BTC Weekly Chart
At the time of writing, Bitcoin is about $19.8k and appears to be range bound between $21.7k and $18.9k. As mentioned in last week’s article, the 200 week MA is just above current price and is acting as resistance as price has only tapped the level once on the weekly timeframe and has not yet reclaimed the level. To be bullish on BTC, I would like to see some evidence of strength by a breakout of the range and/or a reclaim of the weekly 200 MA level.
Bitcoin Bull Scenario
Bitcoin stays above the previous $20k ATH level, while also reclaiming the 200 weekly moving average on a weekly closing basis and/or a breakout to the upside of the range consolidation.
Bitcoin Bear Scenario
Bitcoin loses the $20k level and/or the range low and the next nearest HTF support level falls at or near $14k.
Ethereum/USD – ETH Mirrors BTC
ETH Daily Chart
ETH Weekly Chart
At the time of writing, Ethereum is priced at $1072 and is trading below its prior 2017 all time high level. Similar to BTC, ETH has been range bound trading back and forth between the $1k and $1.2k levels for almost a month now as it prepares for its next move. Also, in a similar fashion to BTC, ETH’s price is right below the 200 week MA and has not yet broken this level. If price can reclaim this level on the weekly time frame and break out of this range, I believe there will be momentum to the upside.
Ethereum Bull Scenario
Ethereum reclaims the weekly 200MA support level on a weekly closing basis and/or breaks the range to the upside, and a move to the 2017 ATH or higher is in the cards.
Ethereum Bear Scenario
Ethereum loses the range low and a move down to the $700-$800 support level is a possibility.