Analysts Remain Divided on Whether Bitcoin Price Will Drop Below $24,000 again

Audy Castañeda
-
0
Analysts Remain Divided on Whether Bitcoin Price Will Drop Below $24,000 again

Cryptocurrency market commentators have not had much encouraging news as risk assets face tough times as financial tightening continues.

The price of Bitcoin (BTC) hovered around $30,000 on May 18 after further comments from the US Federal Reserve sparked volatility.

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair consolidating within a range in place since May 12.

Analyst: Additional Fed Rate Hikes ‘Biggest Risk’

Fed Chairman Jerome Powell expressed his economic policy ideas during the Wall Street Journal’s Festival of the Future of Everything.

“I don’t know if financial conditions have gotten tighter than this in a long time,” he told the paper’s chief economics correspondent, Nick Timiraos, in an interview.

Powell seemed to confirm that interest rate hikes of 50 basis points would continue in the following meetings of the Federal Open Markets Committee (FOMC) of the Fed and could reach “neutral” levels in the fourth quarter. However, further hikes could continue if they are needed to further control inflation.

With traditional markets already anticipating this scenario, volatility was generally limited, so Powell avoided surprises.

The BTC/USD pair briefly dipped to $29,500 before recovering during Powell’s words. However, cryptocurrency market commentators have not had much encouraging news as risk assets face tough times as financial tightening continues.

“Angry reminder. This is the biggest risk to the markets,” macro analyst Alex Krueger responded in a series of Twitter posts about the possibility of continued rate hikes into next year.

Krueger further explained that, “each Fed official has a different view of what is ‘neutral.’ Estimates are between 2% and 3%. Futures markets are already priced at 3.25% for December.”

According to the CME Group’s FedWatch Tool, markets expect the target rate to be between 275 and 300 basis points at the December FOMC meeting.

It Would Make Sense for the Bitcoin Price to Hit $33,000

In the short term, some saw continued relief for BTC. “Bitcoin made a nice close above the $28,800 range low, as well as the $30,000 low that marked the initial wick to the downside in May 2021. The next resistance for HTF is the $33,000s zone. A test of that zone would make sense,” popular trading account Daan Crypto Trades summarized in its latest BTC-focused update.

El Salvador President Nayib Bukele met with a group of central bankers to discuss Bitcoin

Likewise, fellow account DonAlt highlighted the $34,500 level as a crucial breakout point for a more bullish outlook on BTC to enter. A post on Twitter highlights that, “this is what I’m looking at, we reclaim $34.5k and I think there is good reason to be bullish towards at least $44k. While we’re below $34.5k beartarding is allowed, above there less so.”

As Cointelegraph reported, a growing number of traders still favor a return below the lows of $23,800 seen last week at the height of the Terra LUNA and Terra USD (UST) implosions.

“Lows take time to form so don’t expect it in the next day or two,” Crypto trader Tony said on Twitter on the day.

Tony added that, “we are likely to find support, a bounce point to get some relief, catch the late shorts and then trend continues.”

Others, meanwhile, estimate that a pullback to the $20,000 level is unlikely.

By Audy Castaneda

May 18 Price Analysis of Top three Cryptocurrencies: BTC, ETH, BNB

Audy Castañeda
-
0
May 18 Price Analysis of Top three Cryptocurrencies: BTC, ETH, BNB

Weak stock markets continue to weigh on crypto prices and technical analysis suggests that BTC is at risk of falling below its recent low of $25,500.

On May 17, US Federal Reserve Chairman Jerome Powell told the Wall Street Journal that 50 basis point rate hikes would continue until inflation is under control. Powell’s emphasis on aggressive policy suggests monetary conditions are likely to remain tight in 2022, which could limit upside potential for risk assets.

On-chain market intelligence firm Glassnode said that historically, Bitcoin (BTC) has bottomed out when the price falls below the realized price. However, except for the 2019 to 2020 bear market, during previous bear cycles, the price of Bitcoin remained below the real price between 114 and 299 days. This suggests that if macro situations are not favorable, a quick recovery is unlikely.

While the current crash in the US stock and Bitcoin markets bears shows similarities to the March 2020 crash, the recovery may not follow the same trajectory because market conditions are different. In 2020, the Fed supported the markets with unprecedented stimulus, but in 2022 the focus will remain on reducing inflation and monetary tightening.

Could Bitcoin and altcoins resume their downtrend or will lower levels attract buying? Following is an analysis of the top three cryptocurrencies to find answers.

BTC/USDT

Bitcoin’s recovery failed to break above the 38.2% Fibonacci retracement level at $31,721, which suggests that the trend remains negative and traders are selling on minor rallies.

The BTC/USDT pair could drop to the immediate support at $28,630. If the price bounces off this level, the pair could consolidate between $28,630 and $31,721 for some time.

A breakout and close above the 20-day EMA ($32,979) will be the first sign of a possible trend change. Afterward, the pair could rally to the 61.8% retracement level at $34,823.

On the other hand, if the price breaks below $28,630, the bears will try to consolidate their position by pulling the pair below $26,700. If that happens, the negative momentum could increase and the pair could slide to $25,000 and then $21,800.

ETH/USDT

The failure of Ether (ETH) to break above the overhead resistance of $2,159 may have tempted short-term traders to book profits. That pushed the price below $1,940, but the bulls are trying to defend the level.

If the price bounces hard off $1,940, the ETH/USDT pair could rally back to $2,159. The bulls will need to push and hold the price above $2,159 to clear the way for a rally to the 20-day EMA. ($2,353). A breakout and close above this resistance will suggest that the markets have rejected the lower levels.

Conversely, if the bears sustain the price below $1,940, the pair could drop to the crucial support at $1,700. This is an important level to watch out for because a break below it could result in panic selling. The pair could then drop to $1,500 and then $1,300.

BNB/USDT

The bulls have not been able to push BNB above the overhead resistance at $320. This suggests that the bears have not given up and continue to sell higher.

If the price breaks below $290, the BNB/USDT pair could drop to $265. This level is likely to act as strong support, but if the bears pull the price below it, the next stop could be the critical level of $211. The bears will have to break this level to signal the start of the next leg of the downtrend.

Alternatively, if the price bounces off $265, it will suggest that the bulls are trying to bottom out. That could keep the pair stuck between $320 and $265 for a few days. A breakout and close above $320 could suggest that the pair may have bottomed out.

By Audy Castaneda

Bitcoin “Has Set a Bull Trap for Investors” and Will Return to the Dips

Audy Castañeda
-
0
Bitcoin “Has Set a Bull Trap for Investors” and Will Return to the Dips

Experts believe that the current environment precludes a further rebound.

Risk aversion strikes back in the stock markets that this Wednesday has again suffered significant sales after the statements of the president of the Federal Reserve (Fed), Jerome Powell, showing his determination to curb inflation.

Wall Street took a hard hit with a 4% drop for the NASDAQ -which lost its support of 12,100 dollars, which has affected Bitcoin and cryptocurrencies, whose evolution in the markets goes hand in hand with the New York Stock Exchange. However, these assets have withstood the downward pull, which entails serious risks, according to experts.

Where Bitcoin is at… Back in Decline

Satoshi Nakamoto’s brainchild is back below $30,000, “which may make some a little nervous,” says Oanda analyst Craig Erlam. The expert believes that “it is difficult for risk assets to take advantage of the upswing in the current environment in a significant way”. However, for some, this is encouraging as “we have not seen a sharp reaction to moving below such a key level”. “Of course, that could change quickly as underneath it seems to offer the path of least resistance” with a control zone at 25,000-26,500 and below $20,000.

In general, the activity in the digital currency market has continued to decline and this Wednesday there has been lower volatility than the monthly average, comment Rabobank experts. The total capitalization is lower than in previous days and settles at around 1.4 billion dollars. Looking at other tokens, Ethereum has broken out of the $2,000 level.

Experts’ Predicting “Major Leg Down”

In the context described above, there is no shortage of warnings from analysts who believe that the digital asset is simply waiting to start its next bloodletting. Popular Bitcoin critic Peter Schiff calls this a classic bull trap for investors. In one of his recent Twitter posts, Schiff mentions the following:

“I must admit that I’m surprised that Bitcoin has held up this well. But don’t get cocky, hodlers. The market never gives investors this much time to buy the bottom. It’s more likely this is a bull trap to lure in as many more buyers as possible before the next major leg down.”

He continues: “Rising food and gas prices will put more pressure on Bitcoin prices. That’s because groceries and gas stations won’t exchange their food or fuel for Bitcoins. So if Bitcoin hodlers want to eat and driving will soon be forced to sell their precious ‘stash’ in order to afford it.” This will ultimately mean that Bitcoin could crash even below $20,000.

According to César Nuez, an analyst at Bolsamanía, the graphs point to a bleak outlook. “The double turn drawn around $64,000 could be giving us the shape of a double top. This formation has terrifying consequences for the coming months and that is that the figure’s fall target could be quietly at $8,000”.

The Fate of Bitcoin Price

Craig Erlam, an analyst at Oanda, comments that, “Bitcoin price is trading close to the oversold zone as suggested by the RSI on both the daily and weekly timeframes.”

Albert Salvany, strategic consultant at Belobaba CryptoFund, emphasizes that the crypto asset pool has suffered a stampede and the circle of trust in crypto assets has refocused on the irreducible ones who will either succeed or die with it. He adds that “the dominance of Bitcoin is at its highest and the market rotation is completely fired.”

The fate of Bitcoin price is another of the great unknowns to clear up in this new equation. The technical analysis is clear: the great support is at $20,000, however, Palacios anticipates that there will be a long consolidation before reaching these price levels. For Salvany, the destination is $18,000.

By Audy Castaneda

The Founder of Terraform Labs Is Heartbroken at the Collapse of UST

Alexander Salazar
-
0
The Founder of Terraform Labs Is Heartbroken at the Collapse of UST

Kwon talked to various community members about the crash of LUNA, which was trading at nearly USD 120 in early April. The developer believes that decentralized economies deserve decentralized money but warned that UST would not serve that purpose.

Do Kwon, the creator of Terra (LUNA), recently said on Twitter that he was heartbroken at the loss in value of his creations. Besides founding Terraform Labs, the South Korean developer created the LUNA governance token, the TerraUSD stablecoin, and other cryptocurrencies.

Over the last few days, Kwon called various community members to talk about the loss in value of the tokens. LUNA, trading at nearly USD 120 in early April, crashed dramatically this week.

The South Korean cryptocurrency developer tweeted that he believes decentralized economies deserve decentralized money. However, he warned that UST would not serve that purpose in its current form.

Kwon indicated that his reactivation plan envisages distributing ownership among UST and LUNA holders on the network. In addition, he acknowledged that it is impossible to recover the stablecoin of Terra as it stands.

The ECB Introduces a Digital Euro Although the Public Opposes It

The European Central bank (ECB) published another working paper on the digital euro. The report gives an extensive technical analysis of the potential CBDC and its position in the financial system.

The document aims to study financial intermediation, payment options, and privacy in the digital economy. In that way, it arrives at many conclusions based on algebra.

The study indicates that the ECB prefers an anonymous CBDC to traditional digital payments like bank deposits. However, it states that digital currencies or payment tokens issued by technological giants can replace them.

The ECB continues promoting its CBDC project, although Europeans seem not to welcome a digital euro.

Despite a Crypto Boom, the Argentine Central Bank (BCRA) Has other Plans

Argentina is amid a cryptocurrency boom, as millions of users entered the market and stablecoins grew sixfold. The country occupies 10th place in the cryptocurrency adoption index published by Chainalysis.

The conditions for adopting Bitcoin are 58% inflation, devaluation of the Argentine peso, and lack of access to US dollars. Many Argentines consider that cryptocurrencies are the best way to protect their savings.

Last week, Banco Galicia (GGAL) incorporated the option to trade cryptocurrencies on its platform. In addition, the national digital bank Brubank started offering similar services. Both financial institutions seem to be taking a significant step toward widespread cryptocurrency adoption in Argentina.

However, just days after those announcements, the BCRA banned those institutions from offering services with unregulated digital assets. That means that banks can no longer facilitate the trade of cryptocurrencies, which led Banco Galicia to suspend it.

Even though the decision of the BCRA has not directly affected Argentine crypto exchanges, they are nervously looking for signs. Besides, there arose confusion among many stock markets, which have registered high growth rates over the last three years.

By Alexander Salazar

An investor who Lost at Least $2 million in Terra Invaded Founder Do Kwon’s Home

Jenson Nunez
-
0
An investor who Lost at Least $2 million in Terra Invaded Founder Do Kwon’s Home

The investor highlighted that he lost that amount for having invested in the Terra ecosystem coins and urged the founder of the project, Do Kwon, to give a public apology for the more than 200,000 investors who went through this nightmarish situation.

The crash of Terra left a panorama filled with significant losses for many investors who saw in this investment a sea of opportunities; what happened led many investors to express their frustration in different ways. Recently, an investor who fell victim to this crash personally appeared at the house of the founder of the project to make him explain what happened.

Affected Investor Went to the Founder of Terra’s Property

This information got highlighted by a report issued by the Seoul officials, which presented that one of the individuals who tried to break into Do Kwon’s house was an investor who got harmed by the crash of the Terra system. The man expressed that he lost at least 3 billion won, which is approximately USD 2.3 million, and that he intended to share direct words with Kwon to receive an explanation about what happened with Terra.

The report also highlights that the person whose name got kept secret appeared at the complex based in the eastern part of Seoul last week, even going to ring the bell of the Kwon’s property. The wife of the leader of Terra let the authorities know about the incident.

In an interrogative procedure yesterday, the investor disclosed his situation and why he decided to do what he did. He alleged that he manages a transmission channel through social media. In those digital groups, there were people who, as a result of concern, decided to speak about suicide, this action in response to the monetary losses due to what happened to Terra’s ecosystem.

The investor even urged Kwon to give a public apology to more than 200,000 investors who lost their savings due to the fall of UST and LUNA.

Many Victims after the Fall of Terra

Beyond the Korean investor who intended to break into Do Kwon’s home, many more got harmed by the situation. They shared their experiences through forums and social networks, highlighting their frustration about what happened to their investments.

Investors reveal their experiences after the crash of LUNA and UST

The fall of the Terra ecosystem came in light of the sudden decline that affected the LUNA and UST tokens. The latter was especially noteworthy given that it is a stable coin.

That coin lost the particular parity that it had to remain attached to the US dollar and crumbled down to lows near USD 0.09 per unit.

An atmosphere filled with uncertainty led to high sales volumes to reduce losses, which further made the price of both tokens decline in the main markets, with the project’s native currency losing more than 99% of its price.

Despite the crash, Kwon himself presented a strategy to recover the Terra ecosystem in which he proposed a total restart of the network. New tokens will get distributed among users affected after the crash, and a good part will remain treated as a reserve within the treasury.

By: Jenson Nuñez

The DeFi Market Crumbles Down to Levels Registered a Year Ago

Jenson Nunez
-
0
The DeFi Market Crumbles Down to Levels Registered a Year Ago

Funds locked in DeFi went from $231 billion in April to $110 billion in May. The bear market of bitcoin and the fall of Terra could be the cause of this decadence.

After a year of unstoppable growth, funds housed in decentralized finance protocols have approached levels registered a year ago. The bear market in digital assets and the decadence of Terra emerged as the main reasons that triggered this situation.

On May 16, DeFi collected a total value locked registered at USD 110.77 billion. July 2021 was the last time this amount reached that position, after operating for two months and proportioning that value, according to information collected and brought by media outlets.

Regarding the reasons that may have caused this decadent situation, two leading causes appear to have a protagonist role: The first of these reasons get linked to specific market conditions. As the price of significant digital assets such as bitcoin and ether crashes down, dollar deposits in DeFi also crumble without hesitation. Although the housed crypto-assets remained the same, their price decreased, and they collected less TVL.

The previous year, precisely in May, the most prominent digital asset was facing a correction process after its April all-time high peak. That downward behavior continued until July when both the BTC price and the DeFi TVL started to show evolution in their rate.

The Terra case, also noteworthy for DeFi

Another fact that affected the journey of DeFi this year is the subsequent decline of the Terra network. This situation adds its terra USD and Terra currencies and the rest of its environment, adding the DeFi Anchor protocol.

This event could get labeled as the heaviest cause that triggered the current situation of DeFi, whose figures started to decay visibly on May 7, just hours after the phenomenon with UST and LUNA started to burst.

Currently, Terra counts USD 392 million locked in its networks, an amount quite far from the USD 28.67 billion it highlighted during the first week of May. The network came to reign over 14% of the decentralized finance spectrum but now only approaches 0.46%.

Ethereum Appears to be Safer than other Platforms

The main reason Ethereum still reigns as the most famous blockchain for dApps probably relies on its capacity for decentralization.

A specialist has opened up about the subject and shared some of his thoughts. Evan Van Ness, the co-creator of the “Week in Ethereum News, says that people believe in Ethereum because it is the most decentralized platform. If something represents the digital environment, it is the value of decentralization, which is something that not all blockchains can bring to ordinary people.

By: Jenson Nuñez

1...794795796...1,654Page 795 of 1,654