Crypto Technical Analysis Report | 01st-July-2022

Crypto markets witnessed slipping of major assets including Bitcoin (BTC) in the early hours yesterday. Bitcoin barely maintained above the $20,000 level and later fell off while the altcoin’s injury was severe. Most of the tokens today are trading in green range bound trying to break the resistance. This suggests that overall sentiment remains bearish as the investors dived into the extreme fear resulting in sell off. The global crypto market toppled below the $900 bn mark currently at $887 Bn. More drawback strain throughout crypto amid hard regulatory occasions in each the U.S. and Europe.

Bitcoin and altcoins gave back gains from last week’s recovery rally, and the decline below $20,000 from June 29 suggests the bears intend to push the market back to its yearly lows. US stock markets have given back some of last week’s gains and that has brought Bitcoin to  psychological support at $20,000. Bitcoin continued to slide downwards along with Wall Street as it opened on June 30 with a groan. The crypto bulls were not able to hold $20K or $19K especially due to the weak US stock market moves. While, the US dollar  staged another comeback to set a course for the 20-year highs recorded in the quarter.

Ethereum’s native token Ether (ETH) fell on the final trading day of Q2 2022. And it could decline further in the third quarter amid ongoing fears of rising inflation. Specifically, data suggest that investors have deposited around 1 million Ether tokens across all cryptocurrency trading platforms since May 2022. As the amount of ETH in exchanges’ portfolios increases, it indicates increasing selling pressure in the ether market. So far in 2022, they have processed around $450 million in withdrawals, confirming that traditional investors are very bearish on ETH.  On a positive note, Ether’s  June price drop presented an opportunity for some of its wealthiest investors  to “buy the dip.”

On the macroeconomic front, fears of recession as the US GDP contracted 1.6 per cent in the first quarter of the year, geopolitical problems and the constant bearish market have given a major blow to the industry. 3AC (Three Arrows Capital) exposure is creating panic that other hedge funds are going under by generating more selling pressure. The Crypto Fear & Greed Index stood at 11/100, or “severe fear,” at the time of writing.

Technical Outlook:

BITCOIN:

Bitcoin Chart | 1st July 2022
Bitcoin (BTC) Chart

BITCOIN after making the low of $17,622 showed signs of recovery and rallied almost by 23% up to $21,888. The bulls were unable to push the prices above the resistance of $23,000.

Bitcoin has a strong support at $17,000 whereas $23,000 will act as a strong resistance. Hence, to witness a rally BTC needs to close and sustain above $23,000 whereas a close below $17,500 will lead to further downfall.

ETH:

Ethereum Chart | 1st July 2022
Ethereum (ETH) Chart

ETH took support at the crucial level of $860 and surged almost by 44% upto $1,280. The asset faced stiff resistance at $1,250 (Horizontal Trendline and 20 Day Moving Average) and dropped to $997. ETH is trying to take support at the psychological level of $1,000. Hence,  To witness a rally, ETH needs to break and close above the resistance of $1,275 whereas a break below $860 will lead to further downfall.

MATIC:

Matic Chart | 1st July 2022
Polygon (Matic) Chart

MATIC, after making a ‘Rounding Bottom’ pattern at the low of $0.31 rallied almost by 99% up to $0.63 from the low. The asset faced a strong resistance at $0.65 (horizontal trendline) and witnessed profit booking. The asset has a good support at $0.45 and its 20 Day Moving Average. If it holds and sustains above the support then we can expect another up move. Matic is trying to make a ‘Cup and Handle’ pattern with a neckline of $0.65.

Market Updates:

  • The US Securities and Exchange Commission has rejected a proposal to list a Bitcoin exchange-traded fund (ETF) from Grayscale, one of the world’s largest digital wealth managers, on the NYSE Arca.
  • Crypto hedge fund Three Arrows Capital (3AC) has gone into liquidation, a person familiar with the matter told Reuters, in the latest sign that the market downturn is taking its toll on the crypto industry.
  • A report published by blockchain research firm Nansen draws a straight line from Terra to the decline in Lido Staked Ether (stETH) price.
  • The Lazarus Group, a well-known North Korean hacking syndicate, has been identified as the primary suspect in the recent attack that saw $100 million stolen from the Harmony protocol.
  • The Commodity Futures Trading Commission filed a lawsuit today against Cornelius Johannes Steynberg and Mirror Trading International Proprietary Limited (MTI), charging them with fraud and registration violations.

Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum, etc are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.

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