The crypto market had a bit of turbulence this week. The week began with a relief rally which resulted in mild gains and positiveness across the market but towards the end the rebound had washed off and tokens were mostly trading lower. Currently the market momentum and sentiments continues to be pessimistic yet a majority of assets are trading in green as of today morning. Investors and traders have become risk averse mostly due to the increasing inflation and the outcome of it lingers. The global market capitalization is currently at $1.26 Trillion with a rise of about 2% over the day. However the global volume has fallen by almost 29% in the past 24 hours.
And this also includes Bitcoin and other major cryptos which are witnessing decent gains during the first half of the week. The market is currently volatile whilst it continues to trade range bound. BTC and altcoins found resistance at a key moving average, prompting traders to wonder if the current pullback is a test of support to the downside or evidence that the bears are still in control. As Bitcoin falls below $30,000, the gains of the past few days are gone. Altcoins also saw prices drop to lower levels. As US stocks endured another day of pullback, crypto markets followed a similar path. Given the high correlation between BTC and the S&P 500 Index, the chances of traders remaining bullish on crypto assets were reduced
Bitcoin (BTC) has made a tentative beginning to the month of June, suggesting that bears have now no longer gone into hibernation simply yet. Although Bitcoin is buying and selling almost 55% off its all-time excessive of $69,000, whales and establishments stay careful and feature now no longer jumps into the marketplace with gusto, in step with analysts. If Bitcoin repeats historical patterns observed after previous halving cycles, a bottom between $14,000 and $21,000 could form in the next six months, according to the study. After that, Bitcoin could split in the $28,000-$40,000 range for much of the next year and hover around $40,000 during the halving.
Ether’s (ETH) marketplace shape is still bearish in spite of the failed attempt to interrupt the descending channel resistance at $2,000 on May 31. The Ethereum network’s overall price locked (TVL), the whole quantity of property deposited to the network, has dropped by way of means of 5.5% on the grounds that Ether commenced its downtrend 3 weeks ago. Over the past month, the ether futures contract premium has hovered nearly 3%, which is below the market-neutral 5% threshold. The lack of buyer demand for leverage is evident as the current indicator of 2.5sis remains low despite Ether’s negative 24% 3-week return.
On the non-crypto side, a number of stock-related factors are driving negative sentiment in the crypto market. This week Microsoft (MSFT) lowered its earnings and revenue outlook citing difficult macroeconomic conditions. The Federal Reserve noted in its regular Beige Book that economic activity may have cooled in some parts of the country, and the Federal Reserve is poised to reduce its $9 trillion portfolio of assets to stem persistent inflation. On the bright side, a survey of institutional investors published by The Economist magazine found that 85% of respondents agreed that open-source crypto assets like Bitcoin (BTC) or Ether (ETH) could be used as diversifiers in portfolios or treasury accounts. From a macro perspective, investors remain risk-averse, which could translate into reduced appetite for crypto assets.
Technical Outlook:
BITCOIN:
BITCOIN after making the all time high of $69,000 has been trading in downtrend over the past 8 months. The asset plunged almost by 60% from its peak making a low of $26,700. Post this move, BTC has made a ‘Long Legged Doji’ candle at the low which indicates indecision in trend and a possible reversal. Currently, the asset is trading sideways between $28,500 to $32,000 with low volumes. It is facing stiff resistance around $32,000 and has not given a daily closing above $32k for the past twenty three days. Hence, to further rally BTC needs to sustain and close above $32k whereas a close below $28,500 will lead to further downfall for the asset.
ETH:
ETH after making the low of $1,763 on 12th MAY started consolidating between $1,900 to $2,150. The asset gave a breakout on the downside yesterday and made a new low of $1,703. ETH is taking support at the key level of $1,700 (Previous low of ‘Double Bottom’ pattern) and rallied up to $2,000. However, the bulls failed to manage the grip on the asset as it faced stiff resistance at psychological level of $2k and its 20 Day Moving Average. To witness a rally ETH needs to trade and close above $2,150 whereas a break below $1,700 will lead to further downfall and the prices can slide to $1,500 level.
BAT:
BAT was taking support at $0.55. However, the asset broke the support and witnessed a sharp fall making the low of $0.30. Post this move, BAT is trading sideways with low volumes and consolidating in a range from $0.34 to $0.45. Breakouts on either side of the range with good volumes will further decide the trend for the asset.
Weekly Snapshot:
| USD ($) | 26 May 22 | 02 Jun 22 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $29,268 | $30,467 | 4.10% | $30,591 | $28,262 | $32,250 | $28,327 |
| ETH | $1,804 | $1,834 | 1.68% | $2,080 | $1,727 | $2,005 | $1,721 |
| BAT | $0.37 | $0.40 | 7.10% | $0.42 | $0.35 | $0.42 | $0.3528 |
| Crypto asset | 1w – % 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 | $0.60 |
|---|---|---|---|---|
| Resistance 1 | $32,000 | $1,950 | $0.70 | $0.45 |
| USD | BTC | ETH | MATIC | BAT |
| Support 1 | $28,800 | $1,700 | $0.50 | $0.35 |
| Support 2 | $25,000 | $1,500 | $0.35 | $0.30 |
Market Updates:
- The United States Commodity Futures Trading Commission (CFTC) filed suit against Gemini Trust Co. in the U.S. Southern District Court of New York on Thursday. 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. This latest outage lasted around four and a half hours as validator operators managed to restart the mainnet at around 21:00 UTC.
