This week, the crypto market was a little turbulent. Although there was some relief rally that began the week, tokens traded lower and saw mild gains. Market sentiments and momentum are still pessimistic, but most assets trade in green today. Due to rising inflation and its potential consequences, traders and investors have become more cautious. Global market capitalization currently stands at $1.26 Trillion, with an increase of approximately 2% each day. The global volume has dropped by nearly 29% over the last 24 hours.
This includes Bitcoin and the other major cryptos that are seeing decent gains in the first half. While the market is volatile, it trades range bound. BTC and other altcoins encountered resistance near a key moving average. This led traders to question whether the current pullback is a test for support or evidence that bears still have control. The gains made in the last few days have been erased as Bitcoin drops below $30,000 Altcoins saw their prices fall to lower levels as well. Crypto markets also suffered another day of decline as US stocks pulled back. The high correlation between BTC (and the S&P 500 Index) reduced the chance of crypto traders remaining bullish.
Bitcoin (BTC), has had a tentative start to June. This suggests that bears are not yet in hibernation. Although Bitcoin is selling and buying almost 55% of its record high of $69,000, establishments and whales remain cautious and do not jump into the market with reckless abandon, as per analysts. According to the study, Bitcoin could fall between $14,000 and $21,000 if it repeats past halving cycles. Bitcoin could then split between $28,000 and $40,000 for the majority of the next year, hovering around $40,000 during the Halving.
Despite the failure to break the descending channel resistance of $2,000 on May 31, Ether (ETH) market shape remains bearish. The Ethereum network’s total price locked (TVL), which is the entire amount of property that has been deposited to it, has fallen by 5.5%. This is due to Ether’s downtrend starting 3 weeks ago. The ether futures contract premium hovered at a mere 3% over the past month, below the market-neutral threshold of 5%. Despite Ether’s negative 24% 3-week returns, the indicator of 2.5sis continues to be low. This is a sign that there is not much buyer demand for leverage.
Non-crypto, there are a variety of stock-related factors that are driving negative sentiment within the crypto market. Microsoft (MSFT), citing challenging macroeconomic conditions, has lowered its earnings outlook and revenue outlook this week. In its regular Beige Book, the Federal Reserve indicated that some areas of the country may have experienced a cooling in economic activity. The Federal Reserve plans to reduce its $9 trillion portfolio to combat persistent inflation. The Economist magazine published a survey of institutional investors and found that 85% agreed that open-source crypto assets such as Bitcoin (BTC), Ether (ETH), could be used to diversify portfolios or treasury account balances. Macro perspective: Investors remain cautious, which could lead to a decreased appetite for crypto assets.
Technical Outlook
BITCOIN:
BITCOIN has been trading in a downtrend for the past 8 years after reaching $69,000, its all-time high. The asset fell almost 60% from its peak, reaching a low of $26,700. BTC made a “Long Legged Doji” candle at the low, which indicated indecision in trend direction and a possible reversal. The asset trades sideways at $28,500-32,000, with low volumes. The asset is currently facing stiff resistance at $32,000. In the last twenty-three days, it has not posted a daily closing of more than $32k. To further rally, BTC must sustain and close above $32k. A close below $28,500 would lead to further losses.
ETH:
After hitting a low of $1763, ETH has been consolidating between $1900 and $2150 since then. Yesterday, the asset made a breakout and hit a new low at $1,703. ETH has rallied to $2,000. The bulls were unable to maintain their grip on the asset, as it was facing stiff resistance at the psychological level of $2k along with its 20-day moving average. To see a rally, ETH must trade above $2,150, while a break below $1700 will cause further decline and prices could slide to $1,500.
BAT:
BAT was receiving support at $0.55. The asset broke the support and fell to $0.30. BAT traded sideways after this move with low volumes. It is consolidating in a range of $0.34 to $0.45. The trend will be further determined by breakouts that occur on either side, if there are good volumes.
Weekly Snapshot
USD ($)26 May 2202 Jun 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$29,268$30,4674.10%$30,591$28,262$32,250$28,327ETH$1,804$1,8341.68%$2,080$1,727$2,005$1,721BAT$0.37$0.407.10%$0.42$0.35$0.42$0.3528Crypto asset1w – % Vol. Change (Global)BitCoin (BTC)12.97%Ethereum (ETH)22.97%Basic Attention Token (BAT)-5.70%Resistance 2$37,000$2,150$0.85$0.60Resistance 1$32,000$1,950$0.70$0.45USDBTCETHMATICBATSupport 1$28,800$1,700$0.50$0.35Support 2$25,000$1,500$0.35$0.30
Market Updates
Gemini Trust Co. was sued by the United States Commodity Futures Trading Commission. The CFTC claimed in the civil suit that Gemini made false or misleading statements to the CFTC in 2017 during in-person meetings and in documents, violating the Commodity Exchange Act and other regulations.Pseudonymous Shiba Inu (SHIB) founder Ryoshi has walked away from the community after deleting all of their Tweets and blog posts this week.A bug has knocked the Solana blockchain offline again as block production halted at 16:55 UTC on Wednesday. The latest outage was only for four and a quarter hours, with validator operators able to restart the mainnet around 21:00 UTC.
03rd-June-2022 ZebPay
