The pound and ether have significantly adjusted their positions after reaching the next monthly highs, but there is no special reason to panic. The correction occurred just before the publication of important data on the growth rate of inflation in the United States in July this year. The report may negatively impact the market, leading to a large drop in risky assets, which traders relied on, fixing profits from current local highs. But before we talk about the technical picture, I would like to say a few words about the famous investor Cathie Wood and how she sold part of the assets of Ark Investment Management in the form of shares of Coinbase Global Inc. Last month, her company noted regulatory "uncertainty" in the world of cryptocurrencies, which forced Wood to sell unprofitable assets.
According to Ark's daily trading data, on July 26, the firm's three exchange-traded funds sold just over 1.41 million shares worth about $75 million. The firm made the deal a few days after the Securities and Exchange Commission considered some tokens registered on the Coinbase platform to be securities. The company noted that it is still unclear how many Coinbase tokens will have to be excluded from the listing if it does not register them with regulatory authorities and how the exchange's business model will change if it registers them.
Let me remind you that the US Attorney's office recently opened an insider trading case against a former Coinbase employee. Cathie Wood said that although this was not the reason for her foundation's decision to sell, it significantly impacted her. Cathie Wood still owns about 7.1 million crypto exchange shares, making it one of the largest holders.
It is worth noting that Ark funds were in an unstable position this year as the Federal Reserve's rate hike dealt a blow to the so-called "growth stocks." Last month, the firm said it would close its Transparency ETF (CTRU). Wood said her firm's investments are "focused on doing the right thing" and are inherently good for the environment.
Ark CEO also said a few words about the US economy, which, in her opinion, is already in recession, and the Fed will have to start easing its policy next year. According to her, during the crisis, her firm will fully invest in innovation, as companies in this area will thrive in difficult times.As for the technical prospects of bitcoin, the bulls were defeated, but there is no reason to panic. If there is a further decline in the trading instrument, speculators will certainly defend the nearest support level of $22,720, which plays a significant role. Its breakdown will fail the trading instrument back to the lows: $22,180 and $21,430, which is close to $20,700. If the demand for bitcoin returns, it is necessary to break above the resistances: $23,480 and $24,280 to build an uptrend. Fixing at $24,280 will open up a real prospect of returning to the highs of $25,700 and $26,700.
If there is a further fall, ether buyers should prove themselves in the area of $ 1,650, just below which there is a more significant support level of $ 1,575. Its breakdown will quickly push the trading instrument to a minimum of $1,500. If we talk about a full-fledged fall in the ether, the next stop is possible only in the areas of $ 1,420 and $ 1,350. If we talk about the continuation of growth, it is first necessary to consolidate above the nearest resistance level of $ 1,740, which will return the trading instrument to $1,830. This may provoke a new wave of ether purchases in the area of $1,910 with the prospect of a larger breakthrough in the area of $2,000.