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Analyst Who Predicted Bitcoin Crash Far in Advance Forecasts Imminent Crypto Market Shift

The pseudonymous crypto analyst who predicted the current Bitcoin (BTC) bear market says digital assets will present excellent trading opportunities in the coming days. Crypto Capo tells his 406,500 Twitter followers that BTC will likely produce new lows before July, and for the first time in months he’s forecasting an imminent opportunity for traders to enter […]

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Are Small Cap Crypto Assets Rebounding A Sign Risk Appetite Returning?

The crypto market just saw some slight recovery, but the performances are upside down. Opposite to the way sellouts usually play out, the Bitcoin dominance dropped dramatically as the asset is underperforming the Small Cap index. From last November’s $3 trillion market cap, the crypto market is now down to around $800 billion: Smaller Altcoins Make A Strong Comeback Last week the crypto market saw its bottom, followed now by some slight recovery. As per Arcane Research’s latest weekly report, the smaller altcoins have also been seeing red numbers with the Small Cap index shedding 27%, but it has been the best performer overall. In contrast, Bitcoin had dropped 35%. Through this small window of relief during June, we have seen the blue-chip coin underperform all other indexes. As a result, BTC’s dominance in the market fell -1,51% this week to 43,5% while Ether fell -0,31. The latter has been declining since May from 19.5% to 15%. What’s Making This Crypto Winter Colder The report notes that the primary driver of this crypto crash has been the hedge fund Three Arrow Capital (3AC) collapse. Having invested over $200 million in Luna Foundation Guard’s token sale, 3AC’s liquidity ended up being wiped out and its margin call was the last straw for the already pressured market. Related Reading | How Long Will The CryptoWinter Last? Cardano Founder Provides Answers As per the Wall Street Journal, the crypto hedge fund hired legal and financial advisers to help work out a solution for its investors and lenders. The firm is looking for a way out, “including asset sales and a rescue by another firm”. The prognostic is not very positive at the moment, seeing the wave of liquidations and mitigations of losses by crypto exchanges that have followed the collapse. “We were not the first to get hit…This has been all part of the same contagion that has affected many other firms,” Kyle Davies, 3AC’s co-founder, said in an interview. Arcane Research explained that “In periods of insolvency, creditors unwind the most liquid assets first, which is likely the root cause of BTC and ETH’s relative underperformance in the last week.” The report adds that “illiquid altcoins are more challenging to sell at size, particularly during pressuring times, which explains why smaller coins have experienced less excessive selling pressure in the last week”. Meanwhile, Microstrategy CEO Michael Saylor described the events around this winter as a “parade of horribles” in which the consequences of lack of regulation in the crypto field have made it possible for wash trading and cross-collateralized altcoins to weigh down on Bitcoin. “What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure, and they are all cross-collateralized with Bitcoin.” “The general public shouldn’t be buying unregistered securities from wildcat bankers that may or may not be there next Thursday,” Saylor added, slamming at the recent collapses and suggesting that future actions by regulators could prevent the level of volatility that BTC is now experiencing. Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

Crypto News

Dogecoin Mining Revenue Massively Fell In Past 12 Months

Dogecoin continues to plunge as it failed to retain support at the $0.08 level. The bad news is that the Dogecoin price can still fall further down as the bears appear to have bypassed the triangular structure that has latched ferociously around it the previous month. With the structure breached, the bears could pump in more capital to earn more from the DOGE plunge. The bearish candle is now falling head-first which boosts the confidence of many traders to go all-in with the bearish stance. Suggested Reading | Dogecoin Market Cap Shed $6-B Last Month – Will Bearish Pressure Continue The Pulldown? DOGE’s price currently sits at $0.075. And a pause is expected before it goes for a bull run at $0.072. However, the bearish outlook will remain until the liquidity at $0.068 is driven out. Another strong indicator of a bearish control is the DOGE price wasn’t able to get through the Relative Strength Index 40 level. Dogecoin Mining Revenue Down  Despite DOGE being down by 89.50% from its all-time high, it seems to have jumped up by 12.78% from the cycle low it has been lingering on at $0.07. Regardless of the little improvement, DOGE mining revenue is still down at 76.2% in the last year, making the popular meme coin one of the less profitable mining options around, according to crypto market data aggregation and analytics platform CryptoRank. Dogecoin is at the top of the list of the five least profitable mining alternatives. Source: CryptoRank. A drop of more than 70% in mining profitability is not impressive at all for traders – not one bit. So, does this hint trend exhaustion anytime soon? DOGE price significantly dropped by 3.48% in the past week and was also changing hands at roughly $0.077. In addition, after the meme token dropped sharply on May 11, DOGE has since been in tight trading range. Could this possibly indicate a move up? The indicators point towards a bearish trend. RSI has lounged under the neutral point or even appears to be southbound as of this writing.  DOGE total market cap at $8.10 billion on the weekend chart | Source: TradingView.com No Sign Of Trend Exhaustion Meanwhile, the volatility of DOGE is only at 88.28% in the past 30 days. All of these indicate that there is no trend exhaustion at least in the next coming weeks. Investors should look more at the volume before taking long bets. There has been a free fall following April 26 which indicates a low buying and selling activity. Investor interest has waned intensely for a couple of weeks. The social dominance metric hovers currently at 4.88% during press time which indicates that social media power is at play and that people continuously talk about Dogecoin despite the shivers of the crypto winter. Suggested Reading | Bitcoin Slides As CPI Report Hints At Soaring Inflation – More Bearish Pressure Ahead? Featured image from Zipso.net, chart from TradingView.com

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CPI Print Pushes Crypto Into Red Zone, Here Are 2 Potential Scenarios

The crypto market is retesting critical support areas as the U.S. Consumer Price Index (CPI) print surpasses expectations. The metric is used to measure inflation in the U.S. dollar, and it recorded an 8.6% increase year-over-year (YoY), the highest since 1981. Related Reading | TA: Bitcoin Bears Keep Pushing, Why BTC Could Still Nosedive This could turn the U.S. Federal Reserve (FED) more aggressive in its attempts to stop inflation. The financial institution began tightening its monetary policy which has translated into a reduction in global liquidity, and negative performance for risk-on assets, such as Bitcoin. The price of Bitcoin is back at $29,400 with a 3% and 3.5% loss in the last 24-hours and 7-days, respectively. The cryptocurrency made several attempts at returning to previous highs, but market conditions have contributed to an increase in selling pressure. A pseudonym trader presented two potential scenarios for Bitcoin in the coming months. The trader claims the market seems to have two targets in mind for the price of the number one crypto: either more downside to $20,000 or a push upwards to $40,000. As seen below, this trader believes Bitcoin could drop to $25,000 before returning to its current levels. This scenario contemplates Bitcoin forming a new range between its yearly lows and the low $30,000. The number one cryptocurrency, and the crypto market cap, might seem some relief later this year. However, rising inflation with a hawkish FED cast a long shadow over the bulls. The second scenario contemplates a longer BTC price range, but with less volatility. The trader said the following about these potential scenarios: These scenario’s would make for a painful and slow crab market throughout the summer. The space would end up feeling dead and empty. Right in time for some positive changes in terms of the macro landscape later on which could be the bullish catalyst for a breakout. Can Bitcoin And Crypto See New Highs In 2022? As inflation in the U.S. seems to spiral out of control, the U.S FED will continue to tighten by reducing their balance sheets and increasing interest rates. Consequently, the crypto market could experience steeper losses. Over the past months, as macro-economic uncertainty rises, Bitcoin dominance followed with an upward trend. As NewsBTC reported, this metric stood north of 40% in the past 7-days but could return to its 2020 levels. At the time, Bitcoin alone formed above 60% of the total crypto market capitalization. If the economic narrative turns its attention from reducing inflation to stopping a potential global recession, Bitcoin and the crypto market could see some relief. This scenario seems likely to play out by the end of the year. Related Reading | TA: Ethereum Holds Key Support, Why ETH Must Clear This Hurdle In any case, new highs seem unlikely for the crypto market. However, market participants should keep an eye out for a shift in narratives as they could signal potential bullish momentum.

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Ethereum Merge reminding me of COVID lockdowns

ethereum-merge-reminding-me-of-covid-lockdowns

Ugh. Not a good couple of weeks for Ethereum investors, as the DeFi King has dipped down below $1700, now trading 55% below its open of $3722 back on New Year’s Day. BTC Dominates Of further concern for fans of Vitalik’s creation will be the underperformance against Bitcoin over the last month or so. While… More

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Crypto News

How The Crypto Winter Has Impacted The DeFi Sector

The crypto market trends to the downside as major assets are unable to break above local resistance. As per usual, the dominant trend picks winners and losers and unfortunately, the altcoin markets have been amongst the latter. Related Reading | As Bitcoin Slumps, BTC Miners Sell Of Their Tokens Creating Panic In The Market In particular, decentralized finance (DeFi) protocols have been severely impacted by the crypto downtrend. Some of the most popular protocols in the Ethereum DeFi sector, perhaps the biggest ecosystem in the space, record as much as 92% in losses. Jack Niewold, founder of Crypto Pragmatist, set out to dig deeper into the effects of the crypto winter in the DeFi sector. One of his objectives was to determine if DeFi protocols can stay profitable in this downtrend. As seen below, protocols like MakerDAO, SushiSwap, Compound, and others saw a decrease in the price of their native tokens and an even more steep decline in their revenue. This evidence put into question the idea that DeFi and crypto, as Niewold said, “really reached an inflection point”. There is evidence of maturity in the space, institutional adoption, and resistance to overall market declines in larger cryptocurrencies. However, most of the DeFi sector has been unable to retain its revenues. Niewold noted: To be fair, most DeFi tokens have drawn by more than their fee rev, which is interesting–from a ‘fundamental’ perspective, stuff is trading at a discount. I think that’s the first takeaway for me, that projects with real product market fit are trading at a relative discount. Additional data provided by DeFi Pulse indicates the total value locked (TVL) across DeFi protocols has been trending to the downside with revenues and token prices. This metric returned to its February 2021 levels and stands at around $50 billion. Crypto Bleeds As Ethereum Dominance Rises The current downtrend is more palpable across the entire layer-1 ecosystem. While Solana (SOL), Avalanche (AVAX), and others experience a dropped in their prices and network activity, Ethereum (ETH) benefits. The downside trend has translated into a decrease in Ethereum fees. These are currently priced at 2 Gwei or $0.13 for a fast transaction after averaging 100 Gwei or more during network congestion. As Niewold said, L1 networks such as Solana and Avalanche benefited from a rise in Ethereum transaction fees, as these declines, users return to this network. Niewold said: (…) in a period of decreased demand, it makes Ethereum a lot more attractive relative to alt-L1s (…). Alt-L1s do not benefit from this fee reflexivity, as their competitive advantage dies down in periods of lower activity. As NewsBTC noted yesterday, Bitcoin, Ethereum, and stablecoins USDT and USDC, form 77% of the total crypto market cap. BTC and ETH dominance has been on the rise during this downtrend and hints at an overall de-risking behavior from crypto investors. Related Reading | Ethereum Market Cap Cut By Over $100 Billion Last Month At the time of writing, ETH’s price trades at $1,800 with a 2% profit in the last 24-hours.

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Altcoins in Danger of Getting Wrecked As Bitcoin Forms Bottom, According to Top Crypto Analyst

A popular crypto strategist is highlighting one key metric to determine whether or not Bitcoin (BTC) will outshine altcoins in the coming months. The pseudonymous trader Rekt Capital tells his 312,300 Twitter followers the Bitcoin Dominance chart (BTC.D) seems poised to rise and complete a wedge pattern dating back to early 2021. “BTC Dominance is […]

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Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit

Latest data from Glassnode shows Bitcoin long-term holders currently own around 90% of the total supply in profit. Bitcoin Supply In Profit Share Of Short-Term Holders Declines According to the latest weekly report from Glassnode, dominance of long-term holders has observed rise recently. The relevant indicator here is the “supply in profit,” which measures the total number of coins that are currently holding a profit in the Bitcoin market. The metric works by checking the on-chain history of each coin to see what price it was last sold at. If this previous price was less than the current one, then the coin has now accumulated some profit. Related Reading | Bitcoin Bullish Signal: 1k-10k BTC Holders Have Been Buying Recently On the other hand, the last selling price being more than the latest value of the crypto would suggest the coin is holding a loss at the moment. The supply in profit indicator naturally only measures the former type of coins. Now, here is a chart that shows what percentage of this supply in profit is owned by the long-term holders (LTHs): Looks like the value of the indicator has observed some rise recently: Source: Glassnode’s The Week Onchain – Week 23, 2022 LTHs only include those investors who have held their Bitcoin since at least 155 days without selling or moving them. The cohort that has been holding since days less than this threshold are called the “short-term holders” (STHs). As you can see in the above graph, it seems like in the last few weeks the percentage of the supply in profit owned by LTHs crossed the 90% mark. This means that the share of STHs shrunk below 10%. Related Reading | Bullish: Bitcoin Marks First Green Weekly Close After Two Months In The Red Such values of the indicator have also been seen a few times before in the history of the crypto. Usually, those previous instances have taken place during late-stage bear market periods. The report notes that at these values the short-term holders are nearly at a peak pain level as they hold almost no unrealized profits. If this past trend is anything to go by, then the current LTH supply in profit of around 90% may be a sign that the crypto has started to enter into a late bear market. BTC Price At the time of writing, Bitcoin’s price floats around $29.5k, down 6% in the last seven days. Over the past month, the crypto has lost 18% in value. The below chart shows the trend in the price of the coin over the last five days. The price of the crypto seems to have observed a sharp plunge down over the past day | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

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Short Position Piling Up, Could This Hint At The Next Bitcoin Move?

Bitcoin is still unable to break above or below its current range. Yesterday, BTC’s price was seeing a trading session in the green until a surge in negative news contributed to an increase in selling pressure. Related Reading | New Study Shows 37% Of People Want Governments To Legalize Bitcoin Traditional markets also tumbled and added to the downside price action as Bitcoin approached a major area of resistance at $32,000. At the time of writing, Bitcoin (BTC) trades at $29,800 with a 6% loss in the last 24-hours. Trading desk QCP Capital published a market update highlighting the rise in Bitcoin dominance as altcoins, such as Ethereum, continue to underperform. This metric is used to measure the percentage of the total crypto market capitalization comprised of BTC alone and currently stands at 47%. As seen below, the last time this metric was at its current levels was in November 2021 when the market took a final move to the upside before a major crash on December 3 that year. After that, Bitcoin dominance trended to the downside and moved sideways until mid-May 2022. If the upside trend in Bitcoin dominance continues, the altcoin market could experience more pain as BTC’s price remains rangebound. However, the short-term seems ready for some relief. QCP Capital noted an increase in the number of short positions across the market. The trading desk said the following in its report: If this an indication of overall market positioning (i.e. market is directionally short), spot prices might have formed a base here and we could see more spot upside in the short-term. In a separate report, QCP Capital also noted BTC and the crypto market’s capacity to remain “robust” despite the “massive wipe-out” and general selling across the global market. The firm believes this is a “mark of maturity for crypto as a trading and investment asset class”. Bitcoin In The Short Term, The Road To $34K In the same report, the trading desk highlighted what could be the biggest headwind for Bitcoin and the crypto market in 2022. The nascent asset class saw unprecedented growth from 2019 to 2021 on the back of the U.S. expanding its money supply. As QCP Capital said, the U.S. money supply has gone from expanding to contracting. As the chart below shows, the U.S. money supply recorded its firm monthly contraction since 2011 and hints at more pain for Bitcoin and other risk-on assets. The trading desk added: This draining of liquidity will only be exacerbated by the upcoming QT balance sheet unwind as well, beginning 1 June. We expect these factors to weigh on crypto prices. Related Reading | Bitcoin Market Cap Shed Over $120-B Last Month – How Much More Can It Lose? On the short-term horizon for Bitcoin, a pseudonym trader believes there are good conditions for a rally to $34,000. The number one crypto by market cap is signaling oversold on certain metrics and was able to maintain to remain rangebound on key indicators. #Bitcoin– OBV still chopping, good sign we didn't break the chop. Just a little correction to an over inflated pump. #Stock futures caused the sell off, and they'll save it. pic.twitter.com/1tBbs6Qrkc — IncomeSharks (@IncomeSharks) June 7, 2022

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Institutional Investors Flock to Safety of Bitcoin As Altcoins See Almost No Capital Flows: CoinShares

A leading digital assets manager says that institutional investors are converging toward the safety of Bitcoin (BTC) as altcoins see very little capital flows. In the newest Digital Asset Fund Flows Weekly report, CoinShares finds that the top crypto asset by market cap saw total inflows of $126 million last week, bringing its total inflows […]

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