In the early hours of yesterday, crypto markets saw major assets like Bitcoin (BTC), slide. Bitcoin fell to $20,000 and then barely held above that level, while altcoin suffered severe injuries. Today, most tokens are trading in the green range and trying to break the resistance. The overall sentiment is still bearish, as investors jumped into extreme fear, resulting in sell-off. Global crypto market fell below $900 billion mark, currently $887 billion. There are more problems in crypto due to the strict regulatory requirements in both the U.S.A and Europe.
Altcoins and Bitcoin lost some of their gains last week in the recovery rally. The decline below $20,000 since June 29 indicates that the bears are trying to drive the market back down to its annual lows. The US stock markets have lost some of their gains from last week, and Bitcoin is now psychologically supported at $20,000. Wall Street and Bitcoin continue to fall as Bitcoin opened on June 30, with a grumble. Due to weak US stock markets moves, the crypto bulls couldn’t hold $20K or $19K. The US dollar made a comeback and set the course for the quarter’s 20-year highs.
Ether, Ethereum’s native currency (ETH), fell on the last trading day of Q2 2022. It could fall further in the third quarter due to rising inflation fears. Data suggests that around 1,000,000 Ether tokens have been deposited by investors across all cryptocurrency trading platforms, since May 2022. It is a sign of increasing selling pressure on the ether market, as the ETH portfolios increase. They have processed approximately $450 million in withdrawals so far in 2022. This confirms that traditional investors are extremely bearish on ETH. Positively, Ether’s June price fall presented an opportunity to some of its most wealthy investors to “buy” the dip.
The macroeconomic outlook is bleak with fears of recession due to the US GDP contracting 1.6% in the first quarter. Geopolitical issues and a bearish market are also causing concern. 3AC (Three Arrows Capital), which is generating more selling pressure, is causing panic and threatening other hedge funds. At the time of writing, the Crypto Fear & Greed Index was at 11/100 or “severe fear.”
Chart for Bitcoin (BTC).
After hitting a low of $17.622, BITCOIN showed signs of recovery, and rallied nearly 23% to $21,888. The resistance at $23,000 was not reached by the bulls.
Bitcoin is supported at $17,000, while $23,000 will provide strong resistance. To witness a rally, Bitcoin must close and sustain above $23,000, while a close below $17.500 will cause further decline.
Chart for Ethereum (ETH).
ETH gained support at $860, and soared by almost 44% to $1,280. The asset was faced with stiff resistance at $1250 (Horizontal Trendline, 20-Day Moving Average), and fell to $997. ETH is trying take support at the psychological level $1,000. ETH must break above $1,275 resistance to witness a rally. A break below $860 will result in further decline.
Polygon (Matic), Chart
MATIC rallied nearly 99% after it formed a ‘Rounding Bottom” pattern at $0.31, and then rose to $0.63 from its low. Profit booking was observed after the asset encountered strong resistance at $0.65 (horizontal Trendline). The asset is supported by $0.45 and its 20-day moving average. We can expect another up movement if it holds above the support. Matic wants to create a “Cup and Handle” pattern with a neckline $0.65.
The US Securities and Exchange Commission rejected a proposal for a Bitcoin exchange-traded funds (ETFs) from Grayscale. Grayscale is one of the largest digital wealth managers in the world and has been listed on the NYSE Arca.
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