Today’s crypto market is mixed with visible hues of red and green. Although the assets showed signs of weakness at the beginning of the week, a relief rally was evident yesterday when BTC reached the $31,000 mark once again. The market is currently in consolidation and faces stiff resistance at the breakout point.
Midweek gains were due the introduction of a bill on crypto assets, which would address a large number of regulatory issues regarding the industry. Global market capitalization is approximately $1.24 Tr, with volumes falling by about 6% over the past 24 hours.
The current consolidation of Bitcoin and other altcoins is losing optimism. Overhead resistance and constant marketing suggest that there is no way to stop this. Bitcoin (BTC), which is a cryptocurrency, continues to shift a spread with native bottoms and first-rates co-inciding with increased whale activity in the region, according to Whale Map on-chain analytics resource.
Analysts have not been disillusioned by the range-bound action in Bitcoin. Some expect consolidation to continue for a few more times while others see a lower level. Although the open interest in the June 10 alternatives expiry is $800m, the true determination could decrease due to bulls being overly positive.
These investors may have been deceived by the temporary pump of $32,000 on May 31, as their Friday alternative bets expire and their wagers were increased to $50,000.
According to a report, more than 0.006% was realised by long-term investors as of May 29. This is compared to the 0.015% market cap peak during the 2018-2019 bear markets. Investors may need to be ready for longer periods of subdued price fluctuations, in addition to the loss size.
Long-term investors are only experiencing a loss of one month. Previous losses were approximately one year.
Ether (ETH), down 25% in a month. Even the recent upgrade from a Proof-of-Stake consensus on the Ropsten testing net to a Proof-of-Stake, (PoS), failed to change the altcoin’s prices. The leverage positions of market makers and whales did not change significantly, but Ether failed to breach the $1900 resistance on June 6.
It is possible that options traders fear a bigger price correction for Eth, but futures traders don’t want to be more bearish.
Analysts have been able make bullish price predictions. However, the threat of regulation continues limiting investor optimism. Gemini Trust Co was sued by the US Commodity Futures Trading Commission for allegedly making misleading statements during the year 2017 to self-certification. Valuation for a bitcoin futures contract.
The Russian Parliament introduced a bill that banned digital assets from being used as a payment method on June 7. Draft law loosely defines digital assets as “electronic platform” and must be submitted to the Central Bank Registry.
Technical Outlook
BITCOIN:
BTC/USDT Chart
BITCOIN created a ‘Long Legged Doji” candle at $26,700. The asset traded sideways between $28,500 and $32,000, with low volumes. BTC currently trades just above its 20-Day Moving Average and hovers around $30k psychologically.
Positive divergence has been indicated by the RSI, which indicates that prices are losing downward momentum. A trend reversal could soon occur. To witness a rally, BTC must close and maintain above $32,500. A break below $28,500 or close below that level will cause further decline.
ETH:
Chart ETH/USDT
ETH is now trying to get support at $1700 (previous low of a ‘Double Bottom” pattern and its 200-Week Moving Average. It is however facing stiff resistance at its 20-Day Moving Average. Technically, ETH is forming a Descending Triangle’ pattern on a daily basis.
If the breakout happens above the triangle and with high volumes, then the upward movement can be expected. For a rally to occur, prices must close above $2,150. If it closes below $1 1,700, prices could slide further to $1,500.
BAT:
BAT/USDT Chart
BAT trades sideways in a rectangular format between $0.35 and $0.45, with decreasing volumes. The asset has been making a series small Doji candles over the past day, which indicates indecision. The trend will be further determined by breakouts that occur on either side, with high volumes.
Weekly Snapshot
USD ($)02 Jun 2209 Jun 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$30,467$30,112-1.17%$32,250$28,327$31,693$29,312ETH$1,834$1,790-2.43%$2,005$1,721$1,915$1,729BAT$0.40$0.39-1.55%$0.42$0.3528$0.42$0.37Crypto asset1w – % Vol. Change (Global)BitCoin (BTC)-14.88%Ethereum (ETH)-17.64%Basic Attention Token (BAT)-19.09%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
LINK price rallied to $9 following the release of a roadmap by the developers. This allowed it to break its downtrend and gain momentum.
*Sources of charts: https://cryptowat.ch, https://pro.zebpay.com/trade/USDT-INR
Disclaimer: This report should not be regarded as investment advice. It does not consider the financial situation or investment goals of investors. When deciding whether an investment is right for them, all investors should take into account these factors and consult with a professional advisor. This report was prepared by the Company using information that it has access to, as well as information from public sources that have not been independently verified. The Company makes no representations or warranties, either express or implied, regarding the accuracy, reliability, correctness or completeness of the information, opinions or conclusions contained herein. This report is preliminary. The Company does not assume any obligation to revise or update the reports in response to new events or circumstances after the date of the report was made. Trading and Investments in crypto assets viz. Bitcoin Cash, Ethereum, and other crypto assets are highly speculative, and can be subject to market risk. The Author’s analysis should be used only as information and should not be considered investment advice.
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