Bitcoin (BTC) has been struggling to sustain above $30,800 since May 16, suggesting that demand dries up at higher levels. Similarly, U.S. equity markets have not ceased to decline due to uncertainty regarding the number of rate hikes that will be needed to bring inflation under control.
As the crypto bear market deepens, analysts are becoming extra bearish on their projections for the extent of the fall. Trader and analyst Rekt Capital said that Bitcoin could be at risk of falling to $19,000 to $15,500 before a bottom is formed.
However, Arcane Research recently pointed out that buying when Bitcoin’s Fear and Greed Index reaches a score of 8 had resulted in an average median 30-day return of 28.72%. Interestingly, the index hit 8 on May 17.
Could Bitcoin slide further and pull altcoins lower or is it time for a recovery? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin rose above the downtrend line on May 23 but the bulls could not sustain the higher levels. The price turned down and dipped to the strong support at $28,630 on May 24 but a minor positive is that the bulls successfully defended this level.
The bulls are again attempting to push and sustain the price above the downtrend line. If they succeed, the BTC/USDT pair could rally to the 20-day exponential moving average (EMA) ($31,286).
In downtrends, the bears tend to sell the rallies to the 20-day EMA. Hence, this level may act as a stiff resistance. The bulls will have to clear this hurdle to suggest that a bottom may be in place.
On the downside, $28,630 is the important support to keep an eye on because a break below it could result in a drop to the May 12 intraday low at $26,700.
Ether (ETH) dipped below the uptrend line on May 24 but the bulls bought at lower levels and pushed the price back above the uptrend line. This suggests that bulls are trying to defend the uptrend line with vigor.
However, the bears have not given up and they are again attempting to pull the price below the uptrend line on May 25. If bulls thwart this attempt, the ETH/USDT could rise to the overhead resistance at $2,159.
Contrary to this assumption, if the price breaks and sustains below the uptrend line, it will suggest advantage to bears. The pair could then decline to $1,903. A break and close below this support could pull the pair to the May 12 intraday low at $1,800.
BNB climbed above the 20-day EMA ($323) on May 24 but the long wick on the May 25 candlestick suggests that the bears are attempting to defend the overhead resistance at $350.
The flattish 20-day EMA and the relative strength index (RSI) near the midpoint do not give a clear advantage either to the bulls or the bears.
If bulls push the price above $350, the advantage could tilt in favor of the buyers. Such a move could clear the path for a potential rally to the 50-day simple moving average (SMA) ($368) and later to $413.
Conversely, if the price turns down and breaks below $320, it will suggest that bears are aggressively selling at higher levels. The BNB/USDT pair could then slide to $286.
The bulls are defending the immediate support at $0.38. Although Ripple (XRP) bounced off $0.39 on May 24, the bulls could not sustain the higher levels.
The bears are again attempting to sink the price below the support at $0.38 but the long tail on the candlestick suggests strong buying at lower levels. If the demand sustains at higher levels, the bulls will attempt to push the price above the downtrend line and challenge the 20-day EMA ($0.46).
On the contrary, if the price turns down from the current level or the downtrend line, the bears may again try to sink the XRP/USDT pair below $0.38. If they can pull it off, the pair could drop to the vital support at $0.33.
Cardano (ADA) has been trading in a tight range between $0.49 and $0.56 since May 19. This suggests that bulls are attempting to form a higher low but are facing stiff resistance from the bears at higher levels.
If the price rebounds off the support at $0.49, the ADA/USDT pair may remain stuck in the range for a few more days. The bulls will have to push and sustain the price above the 20-day EMA ($0.58) to indicate the start of a strong relief rally that may reach the breakdown level of $0.74.
Instead, if bears sink the price below the strong support at $0.49, the selling may intensify and the pair could slide toward the May 12 intraday low at $0.40.
Solana’s (SOL) attempt to rally on May 23 fizzled out at $54. The failure of the bulls to push the price to the 20-day EMA ($58) indicates that demand dries up at higher levels.
The bears are trying to sink the price below the immediate support at $47. If they manage to do that, the SOL/USDT pair could drop to $43 and thereafter to the critical support at $37. The downsloping moving averages and the RSI near the oversold territory indicate advantage to sellers.
Contrary to this assumption, if the price rebounds off $47, the bulls will try to propel the pair above the 20-day EMA and challenge the breakdown level at $75.
Dogecoin (DOGE) has been stuck inside a tight range between $0.08 and $0.09 for the past few days. The bulls tried to push the price above $0.09 on May 23 but failed. This may have attracted selling by the bears who are trying to sink the price below the immediate support at $0.08.
If they succeed, the DOGE/USDT pair could slide to the crucial support at $0.06. This is an important level for the bulls to defend because a break and close below it could resume the downtrend. The pair could then drop to $0.04.
On the contrary, if the price rebounds off $0.08, the pair may continue to trade inside the range for a few more days. The bulls will have to push and sustain the price above the psychological level of $0.10 to indicate that the downtrend may be weakening.
Polkadot (DOT) has been clinging to the $10.37 level for the past few days. The bulls pushed the price above $10.37 on May 23 but could not sustain the higher levels. This suggests that bears are selling on rallies to the 20-day EMA ($11.23).
The bears may try to pull the price to the immediate support at $9.22. If this support cracks, the DOT/USDT pair could drop to $8 and thereafter to $7.30. The bulls are expected to defend the zone between $8 and $7.30 aggressively.
On the upside, the buyers will have to push and sustain the price above the 20-day EMA to indicate that the sellers may be losing their grip. The pair could then rally to the breakdown level at $14 where the bears may again mount a strong defense.
Avalanche (AVAX) broke below the pennant formation on May 24 but the long tail on the day’s candlestick shows that bulls bought the dip. They tried to push the price back into the pennant but failed.
The bears are trying to build upon their advantage and pull the price below the immediate support at $26.87. If they do that, the AVAX/USDT pair could slide to the crucial support at $23.51. This is an important level for the bulls to defend because if they fail to do that, the downtrend could resume. The next support on the downside is $20.
To invalidate this bearish view in the short term, the bulls will have to push the price above the pennant and the 20-day EMA ($37.23).
Shiba Inu (SHIB) attempted to break above the immediate resistance at $0.000013 on May 23 but the long wick on the day’s candlestick shows that bears continue to sell at higher levels.
The failure of the bulls to push the price higher could attract selling by aggressive bears who will try to pull the SHIB/USDT pair below the immediate support at $0.000010. If they manage to do that, the pair could slide to the May 12 intraday low at $0.000009.
Alternatively, if the price rebounds off the support at $0.000010, it will suggest that bulls are buying on dips. That could keep the pair stuck inside the $0.000010 to $0.000014 range for a few more days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
Record Investment Outflows of $423 Million Led to Crypto Bloodbath
Last week saw record outflows of $423 million from crypto assets, according to CoinShares.
The report found that the outflows last weekend were likely responsible for bitcoin’s decline to $17,760. Analyst James Butterfill said: “The outflows were solely focussed on bitcoin, which saw net outflows for the week totaling US$453m.”
BTC outflows bring down institutional investments
Therefore, if bitcoin is removed from the calculations, Ethereum contributed an inflow of around $11 million while other alts also added minor positive flows, aggregating inflows to the extent of $70 million.
This was Ethereum’s first inflow after 11 consecutive negative sessions according to CoinShares.
In the past week, the BTC market has slid under the $20,000 level twice. Short-bitcoin saw inflows of $15 million due to the launch of the first U.S.-based short investment product in the week in question, the report noted.
Benefits of a crypto bear market
Similar wide margins were last seen in the previous negative peak, in terms of outflows, in Jan at $198 million.
However, in relative terms, Butterfill remarked that the week did not witness the largest negative flows against total assets under management (AuM).
“This record occurred during the bear market in Feb 2018 where outflows representing 1.6% of AuM were witnessed, while the outflows last week were the third largest on record, representing 1.2% of AuM,” the report noted.
But despite the bearish sentiments, some crypto bosses are optimistic about the results of a market downturn. Charlie Silver, founder of Permission.io told Insider: ” There are hundreds of firms that are built on hype and not substance. It will be good for the industry to have them go away.”
“Bear markets are healthy because it resets valuations to reality and flushes out the bad actors. There are many cryptos that are true Ponzi schemes, that pay investors only with new investor money. When the new money dries up the project falls apart,” Silver added.
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Uzbekistan warms up to Bitcoin mining, but there’s a catch
The executive order spares all the mined assets from taxation and bans mining anonymous currencies.
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The National Agency of Prospective Projects (NAPP) in Uzbekistan announced its demands toward crypto mining operators. It would only allow the companies that use solar energy to mine Bitcoin (BTC) or other cryptocurrencies.
The normative act on the government page, dated June 24, describes the confirmation of “Guidelines on the registration of the crypto assets mining,” and sets the finalization date on July 9. The second article of the document offers an uncompromising wording:
“Mining is being carried out only by the legal entity with the use of electric energy, provided by a solar photovoltaic power plant.”
As a further complication, the miners should own the solar photovoltaic power plant that they will use for energy.
The executive order also obliges any mining operator to obtain a certificate and register in the national registry of crypto mining companies. This procedure demands a brief list of documents, and should take no more than 20 days from submitting to the final decision to the licensing body. The certificates would be valid for one year after the registration.
All the currency generated from mining activities would be spared taxation, though the mining farms would face the special tariffs on the consumed energy set by the Uzbekistan government. But, the trade operations with mined assets would have to be conducted only on the exchange platforms that are registered in Uzbekistan. The mining of anonymous cryptocurrencies would be prohibited.
In April 2022, the freshly-restructured NAPP became Uzbekistan’s exclusive crypto regulator with the mission to adopt a special crypto regulation regime in the country. This move came in a row of initiatives launched by the Uzbekistan President Shavkat Mirziyoyev to provide the regulatory framework for crypto. In September 2018, Mirziyoyev signed a law prohibiting local firms from launching their crypto exchanges in Uzbekistan. The law only offered legal status to crypto exchanges established by foreign legal entities.
Celsius denies allegations on Alex Mashinsky trying to flee US
Celsius CEO Alex Mashinsky wasn’t trying to leave the U.S. last week but has continued to work on recovering liquidity and operations, the company has claimed.
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Troubled crypto lending firm Celsius is putting their best foot forward to recover operations alongside CEO Alex Mashinsky, who currently stays in the United States, the company has claimed.
A spokesperson for Celsius has denied rumors that the company’s CEO tried to flee the U.S. last week amid the ongoing liquidity crisis of the Celsius Network.
The representative told Cointelegraph on Monday that the firm continues working on restoring liquidity, stating:
“All Celsius employees — including our CEO — are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the U.S. are false.”
Celsius’ statement came shortly after Mike Alfred, co-founder of the crypto analytics firm Digital Assets Data, took to Twitter on Sunday to claim that Mashinsky attempted to leave the country last week via Morristown Airport in New Jersey.
Citing an anonymous source, Alfred alleged that Celsius’s CEO was trying to go to Israel. “Unclear at this moment whether he was arrested or simply barred from leaving,” he added.
Alfred’s claims followed a massive GameStop-like “short squeeze” of Celsius, with Celsius’ native token Celsius (CEL) jumping 300% in one week by June 21. CEL price also abruptly rallied more than 600% on June 14, with analysts attributing the event to an exchange glitch or liquidation of short traders.
At the time of writing, CEL is trading at $0.741, down around 5% over the past 24 hours, according to CoinGecko. Celsius’ native token is still up more than 160% over the past 14 days.
Some industry observers in the crypto community have expressed skepticism about Alfred’s tweets about Mashinsky, with many considering his allegations as FUD.
If @Mashinsky attempted to leave the country this week, why are you reporting it now exactly when the CEL price is going down? Seems very coincidental Mike Alfud. And why no mainstream media or crypto media is reporting this? #CelShortSqueeze https://t.co/ynJbzWib9o
— Otis — #CelShortSqueeze ©️ ⚡️ (@otisa502) June 27, 2022
As previously reported by Cointelegraph, Celsius officially announced that it would be “pausing all withdrawals, swaps and transfers between accounts” on June 13. United States regulators subsequently started an investigation into Celsius as multiple accounts on the network were frozen.
According to some analysts, Celsius’ liquidity issues should be attributed to shortcomings of the existing crypto lending model in general, as other lenders in the market have faced similar problems recently.
Celsius has been working hard to fix the consequences of the platform’s liquidity crisis, reportedly onboarding advisers and restructuring consultants to help the platform handle potential filing for bankruptcy. On June 18, Celsius’ lead investor BnkToTheFuture and its co-founder Simon Dixon offered to assist the network by deploying a recovery plan.
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