Bitcoin Crypto News Ethereum

Investors May Expect Downside For Bitcoin And Ethereum Market For The Next 3 Months

The crypto markets have accepted the depegging of UST and the subsequent downward spiral of LUNA, both of which impacted the price of Bitcoin and the entire digital asset spectrum. According to a recent report by the Glassnode team, the Bitcoin market has been trading lower for eight weeks, making it the ‘longest continuous series of red weekly candles in history.’ Even Ethereum, the most popular altcoin, painted a similar picture. Bearish fluctuations damage returns and profit margins directly or indirectly. To make matters worse, derivative markets forecast shows more declines in the coming three to six months. Derivative Markets Hint At More Pain For Bitcoin According to derivative markets, the prognosis for the next three to six months remains fearful of further fall. On-chain, the report stated that blockspace demand for Ethereum and Bitcoin has dropped to multi-year lows, and the rate of ETH burning via EIP1559 has reached an all-time low. Glassnode calculated that the demand side will continue to face headwinds due to poor price performance, uncertain derivatives pricing, and extremely low demand for block-space on both Bitcoin and Ethereum. The report explains: Looking on-chain, we can see that both Ethereum and Bitcoin blockspace demand has fallen to multi-year lows, and the rate of burning of ETH via EIP1559 is now at an all-time-low. Coupling poor price performance, fearful derivatives pricing, and exceedingly lacklustre demand for block-space on both Bitcoin and Ethereum, we can deduce that the demand side is likely to continue seeing headwinds. Both Bitcoin and Ethereum’s price performance over the last 12 months has been disappointing. Long-term CAGR rates for Bitcoin and Ethereum have been impacted as a result of this. Source: Glassnode BTC, the largest cryptocurrency, moved in a roughly 4-year bull/bear cycle, which was frequently accompanied with halving events. When looking at long-term returns, the CAGR has dropped from almost 200 percent in 2015 to less than 50 percent as of this writing. Related Reading | New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate Furthermore, Bitcoin had a negative 30% return over the short term, implying that it corrected by 1% every day on average. This negative return for Bitcoin is very similar to prior bear market cycles. Source: Glassnode When it comes to ETH, the altcoin performed far worse than BTC. Ethereum’s monthly return profile revealed a depressing picture of -34.9 percent. Ethereum likewise appears to be seeing diminishing rewards in the long run. Furthermore, during the previous 12 months, the 4-year CAGR for both assets has dropped from 100% to only 36% for BTC. Also, ETH is up 28 percent per year, emphasizing the severity of this bear. To make matters worse, the derivative market warned of future market declines. Near-term uncertainty and downside risk continue to be priced into options markets, particularly over the next three to six months. In reality, during the market sell-off last week, implied volatility increased significantly. Total crypto market cap stands at $1.2 Trillion. Source: TradingView The Glassnode analysis concluded by stating that the present bear market has taken its toll on crypto traders and investors. Furthermore, the Glassnode team emphasized that downturn markets frequently worsen before improving. However, ‘bear markets do have a tendency of ending’ and ‘bear markets author the bull that follows,’ so there is some light at the end of the tunnel. Related Reading | TA: Bitcoin Price Stuck In Key Range, Why Dips Might Be Limited Featured image from iStockPhoto, Charts from Glassnode, and TradingView.com

Crypto News

Solana (SOL) Could Register An Upswing, Thanks To This Pattern

Solana has been currently trading within a consolidation phase. Despite a recovery on charts, the coin is trading at the level it last traded in the month of August, last year. Over the last few days, the coin observed lateral price movements. Usually after a consolidated phase, it can be assumed that the altcoin could witness a change in the price movement. Technical outlook painted a positive price action for Solana on both its hourly as well as daily chart. Solana has recovered by over 40% from its lowest price which was recorded mid month, this year. At the moment, Solana has been trading between $44 and $58 price level. If the coin has to invalidate the bears completely, a jump above the $70 will be required. As the price of the asset started to note northbound movement, buyers regained confidence and started to re-enter the market. Solana Price Analysis: One Day Chart The altcoin was exchanging hands at $53 at the time of writing. Although, SOL was moving sideways, the technical pointed towards a possible bullish revival. Nearest resistance line for the coin stood at $60 and if the coin struggles too much to break past the aforementioned level then SOL could attempt to visit the next support line. The next price floor for SOL was at $44.85 and then at $34. Solana has visited these levels almost over ten months ago when the coin was on a bullish price action. Bullishness can be pointed out because SOL has just managed to bounce off the long standing support line (yellow) of $40 on the above chart. This particular price action can be attributed to a further upside movement. Related Reading | Solana TVL Sees Sharp Decline, Reaches 2022 Low One Hour Chart An ascending triangle has been formed on the one hour chart. This formation is tied to a bullish price action in the market. Solana could soon break past $53 price level and challenge the $60 mark. If the buyers are consistent in the market, this could happen even sooner. Volume of the coin was seen in the green which is again directly related to bullish strength in the market. It is possible that the coin might consolidate over the immediate trading sessions and then finally break past the sideways trading pattern. Technical Analysis Buying strength returned on the charts for Solana. As the coin regained some of its vigour back, investors are also back in the market. As seen on the Relative Strength Index, the indicator noted an uptick. Solana was not oversold anymore, however, the coin still witnessed more selling pressure compared to buying pressure in the market. Moving Average Convergence Divergence noted green signal bars after noting a bullish crossover. The green signal bars highlight a change in the price momentum along with depicting that selling pressure was declining. With decline in selling pressure, Solana would again attempt to move past its immediate resistance mark. Related Reading | LUNA Records 100% Growth In A Single Day. More Upside Coming?

Bitcoin Crypto News

Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?

Bitcoin for the past two months has been closing consecutive weeks in the red. The previous week had seen it close its seventh consecutive weekly candle for the first time in history, and although investors hoped that this would end with a reversal, the digital asset has gone on to mark another week in the red. This makes it the first time ever for bitcoin to see eight consecutive weekly closes, causing major panic among crypto investors. Eight Weeks Red Not Bad? Normally when a large digital asset such as bitcoin is closing multiple weeks in the red, it points towards a massive bear market on the horizon. Now, it can be safely assumed that the crypto market has successfully made its way into the bear market. This has been the reason for the low and negative momentum among investors over the last couple of months. But with bitcoin closing so many weeks in the red, it is expected to get worse. Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000 One thing that has been consistent when bitcoin has closed multiple weeks in the red has been the downtrend that has usually followed the market. Even though there are those who see this as a time to accumulate, the massive sell-offs triggered by these red closes have simply won out in the end. These types of consecutive negative weekly closes have become known as an unavoidable part of being in a bear market. BTC marks eight consecutive red close | Source: BTCUSD on TradingView.com However, the market has never seen anything like this. It would be natural to want to use historical context when something alarming occurs but with no point of reference, there is no way to tell where the market might go from here.  Bitcoin In For A Bear? Even though there is no historical context to compare the current market conditions to, the opposite has happened before. Last year, bitcoin had recorded eight straight weeks of green closes. What followed this was multiple bull rallies that saw the price of the digital asset eventually hit its all-time high of $69,000. If this were to be taken and compared to current market conditions, with the eight consecutive red closes, the digital asset is likely in for multiple dips and crashes that will likely send it back into the $20,000 territory. So it is very likely that the bottom of the market is not as many would like to believe. Related Reading | MicroStrategy Will Not Dump Any Of Its Bitcoin, CFO Reveals There are indicators that suggest otherwise though, such as bitcoin trading above its 5-day moving average. But this is only a good indicator for the shorter term as longer-term indicators remain bearish. Small investors are also picking up the pace when it comes to accumulating BTC. The number of Bitcoin wallets with more than 1 BTC on their balance had recently touched a new high, now sitting at 844,906. While this points to positive sentiment among these investors, in the grand scheme of things, these smaller investors hold too little to actually move the market. So if there is to be any recovery, the digital asset would need some movement from larger holders. Featured image from Unsplash, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… 

Bitcoin Crypto News

Bitcoin Taker Buy/Sell Ratio Approaches Bullish Cross

On-chain data shows the Bitcoin taker buy/sell ratio is now approaching a crossover with the “1” level, a sign that could be bullish for the crypto’s price. Bitcoin Taker Buy/Sell Ratio Observes Rise, Almost Reaches A Value Of 1 As explained by an analyst in a CryptoQuant post, signs may suggest that a local top could soon be coming for the crypto. The “taker buy/sell ratio” is an indicator that measures the ratio between the Bitcoin long volume and the short volume. When the value of the metric is greater than one, it means the taker buy volume is higher than the sell volume right now. This trend indicates that a bullish sentiment is dominant in the market at the moment. Related Reading | Bitcoin NUPL Touches Lows Not Seen Since COVID Crash, Rebound Soon? On the other hand, the ratio being below one implies the majority sentiment is bearish currently as taker sell volume is more than the long volume. Now, here is a chart that shows the trend in the Bitcoin taker buy/sell ratio over the last few months: The value of the indicator seems to have observed a surge recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin taker buy/sell ratio has been rising over the past month and is now approaching a crossover with the “1” level. In the past, an increase in the indicator’s value above this line has usually been a bullish signal for the crypto’s price. Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000 The quant also points out that the volume has been going up and is about to cross above a positive value. The below chart shows this trend. Looks like the BTC volume has been going up in recent weeks | Source: CryptoQuant The analyst believes that these two trends together (if they continue on and the respective crosses take place) may indicate that the price of Bitcoin could see an increase soon and form a local top. BTC Price At the time of writing, Bitcoin’s price floats around $30.3k, up 2% in the last seven days. Over the past month, the crypto has lost 24% in value. The below chart shows the trend in the price of the coin over the last five days. The price of the crypto looks to have observed a rise over the last couple of days | Source: BTCUSD on TradingView Bitcoin seems to have gained some footing above the $30k level in the past two days, but the coin has still been stuck in an overall trend of consolidation for a couple of weeks now. At the moment, it’s unclear when the coin may escape this rangebound market and show some real price movement. Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Bitcoin Crypto News

Bitcoin Investors Gripped By Fear, Any Sign Of Hope Remain?

Bitcoin is moving sideways after a major bear assault took it below its 2021 low. The first crypto by market cap seems to be displaying short-term low volatility and could see further downside, according to market participants’ expectations. Related Reading | Coinbase Is on a Downwards Spiral and Could Be Taking your Crypto with It At the time of writing, the first crypto by market cap trades at $30,400 with a 1.5% profit in the past 24-hours. The crash in the price of Bitcoin was triggered by a shift in the U.S. Federal Reserve (FED) policy. The financial institution has begun tightening its monetary policies after years of low-interest rates and high liquidity across the markets. According to a recent report from on-chain research firm Glassnode, Bitcoin entered bear market territory in 2021. At that time, expectations of higher interest rates from the FED saw an uptick. The firm believes that May and July 2021 selloff was the “genesis” of the current bear market. This coincides with a dropped in the Compound Annual Growth Rate (CAGR) for Bitcoin and Ethereum. This metric is used to measure returns and has been on a decline every year since BTC became a tradable asset. The recent dropped in BTC’s returns, the research firm said, is worse than when the cryptocurrency crashed from the mid-area around $50,000 to $42,000. As seen below, Glassnode claims this dropped in CAGR or returns coincides with the starts and ends of BTC bear markets. In terms of returns, May-July 2021 behaved similarly and even recorded a steeper decline than today’s negative 30% drop in this metric. If history is to repeat, Bitcoin should see some relief in the short term. This potential bounce might not mark the definitive bottom of the downside trend. Players Bet On More Future Bitcoin Downside Price Action Market participants are expecting this scenario. For the next two to three months, Glassnode noted, there is an increase in the number of put (sell) options for Bitcoin. The strike prices for these options stand at $25,000, $20,000, and $15,000. Call (buy) options, the research firm claimed, are lower with most bullish traders aiming for a bounce to $40,000 over the same period. Glassnode said: This suggests that at least out to the middle of the year, the market has a strong preference for hedging risk, and/or speculating on further downside price action. Related Reading | Bitcoin Reclaims $30K Territory After Recent Weeks’ Struggle – Analysts Weigh In Over the long term, the options market is bullish. By the end of 2022, players are setting their strike prices at around $70,000 to $100,000.

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Lido (LDO) Sheds 58% Of Its All-Time High TVL At $11 Billion

Lido TVL or total value locked, toppled over to new high lows seen in the third week of this month following the bearish movement of the DeFi market. LDO has shaved off over 58% of its TVL, which registered an all-time high of $20.4 billion on April 6 but dropped down to roughly $8.6 billion on May 22. Suggested Reading | Ripple (XRP) Plunges To $0.43 With Bears In Full Swing Lido, a liquidity staking solution, targets orienting people towards staking. It has zero minimum staking requirements which is a great feature, to begin with. The users can freely stake assets in exchange for daily rewards. A couple of applications and services connected with Lido comprise Anchor Protocol, Curve, MakerDao, 1inch, StakeEther, Ledger, and SushiSwap Onsen. Lido TVL Down 17% LDO’s TVL has been dramatically slipping due to the overall crypto market crisis going on for several months now. Its TVL on Ethereum was at $10.32 billion on April 6. After reducing investor interest, its TVL decreased 17% or equivalent to $8.47 billion on May 22. Meanwhile, its TVL on its all-time high on Terra was at roughly $9.66 billion. However, the figures dropped 99% on May 22, or approximately $14,870 in six weeks.    LDO TVL on Solana used to be hovering at $417.17 million, but it went down by nearly 70% or roughly $126.24 million on May 22. LDO total market cap at $395 million on the daily chart | Source: TradingView.com Lido TVL on Moonriver was at $2.57 million during the height of dApps popularity. However, when investor interest waned, the values also crashed by 27%, equivalent to $1.86 million seen in that same period. After crashing by more than $11 billion, LDO has been demoted from the ranks close to MakerDAO and Curve. LDO Still Superior In TVL On the flip side, despite Lido’s drop in terms of TVL, it still is superior in TVL compared to Convex Finance, JustLend, Aave, SushiSwap, Uniswap, Instadapp, PancakeSwap, Compound, and Just Lend. It opened on April 6, trading at $4.27. However, the coin dropped on May 12 at $1.23 and seems to be not going over the $1.33 mark today. Looking at those figures, this would give you as much as a 68% loss in LDO price in just six weeks. Suggested Reading | Bitcoin Reclaims $30K Territory After Recent Weeks’ Struggle – Analysts Weigh In Polygon Launch This Month Lido is currently the leading Ethereum liquid staking solution that comprises a large share of over 80% in that space. Moreover, assets staked on Lido are divided into 76,000 crypto wallets and worth $10 billion based on prevailing prices. Lido also promotes liquid staking on Terra, Kusama, and Solana blockchains. Lido’s launch this month on Polygon is in the works. Lido is governed by a DAO or equivalent to all the holders of Lido’s token, which collectively makes decisions in the blockchain. Featured image from BitRss.com, chart from TradingView.com

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Top Analyst Predicts Relief Rallies in Bitcoin (BTC), Ethereum (ETH) and One More Large-Cap Altcoin

A popular crypto analyst who continues to build his following with timely altcoin calls says that relief rallies are approaching for Bitcoin (BTC), Ethereum (ETH) and an additional large-cap crypto asset. The pseudonymous analyst known as Kaleo tells his 509,000 Twitter followers that Bitcoin is currently being greatly affected by sell-pressure in the equities markets. […]

The post Top Analyst Predicts Relief Rallies in Bitcoin (BTC), Ethereum (ETH) and One More Large-Cap Altcoin appeared first on The Daily Hodl.

Bitcoin Crypto News

Bitcoin Reclaims $30K Territory After Recent Weeks’ Struggle – Analysts Weigh In

Bitcoin recorded a significant positive divergence early Monday, following seven days of trading below $30,000. The crypto is trading at $30,536.93 at press time, a decrease of 2.5 percent from the previous week, according to Coingecko data. In the preceding 24 hours, the worldwide cryptocurrency market capitalization increased by almost 2 percent, reaching nearly $1.3 trillion. However, the total trading volume of cryptocurrencies was up by more than 28 percent to $62.13 billion. Bitcoin has struggled in recent weeks as the U.S. Federal Reserve has increased interest rates and inflation has remained up, increasing the likelihood of further monetary tightening. Suggested Reading | Cardano (ADA) Grapples At $0.524; Bullish Trajectory Coming Bitcoin No Longer A Hedge Vs. Inflation? In the past, Bitcoin was recommended as a hedge against inflation, but in recent months it has proven to be closely associated with risk assets, such as the Nasdaq 100, which has fallen in response to broader market volatility. Over the past 10 days, Bitcoin’s price has been trading flat, consolidating around $30,000. Bitcoin may find it difficult to recapture its former glory, since investors appear to be avoiding riskier assets in the present inflationary environment. According to Mudrex Co-Founder and CEO Edul Patel: “Despite a nearly 3 percent increase over the past 24 hours, Bitcoin was unable to breach the US$30,000 threshold. Over the last week, Bitcoin’s price remained unchanged, as it struggled to move beyond its support.” The Dow Jones Industrial Average (DJIA) has decreased for nearly eight consecutive weeks, and major indexes have followed suit. As the S&P 500 declined, a strong correlation between it and the crypto markets became clear. BTC ending the week at $30,000 represents its seventh straight weekly closing in the red territory, according to Darshan Bathija, CEO and Co-Founder of Vauld. BTC total market cap at $578 billion on the daily chart | Source: TradingView.com For his part, popular crypto analyst Lark Davis writes: “Bitcoin is exhibiting a massive bullish divergence on a daily scale. The last time something similar occurred was in 2021. Could this portend a massive rally?” Suggested Reading | Cosmos (ATOM) Skyrockets 12% Following Bitcoin And Ethereum Recovery Crucial Next Two Weeks For BTC Genesis Global Trading’s Noelle Acheson and Konrad Laesser said in a Saturday note that the price of Bitcoin will likely fluctuate between $29,000 and $31,000 over the next two weeks. Some economic-data releases, such as U.S. gross domestic product (GDP) or inflation figures, “may alter the narrative,” according to Acheson and Laesser. According to analysts at WazirX Trade Desk, BTC’s monthly trend has broken below the ascending channel pattern. Meanwhile, the next level of resistance for BTC is anticipated to be $40,000, while the nearest level of support is $24,000. Bitcoin’s monthly relative strength index is currently at 47, its lowest level in more than two years. The support level for the RSI is 43, according to analysts. Featured image from Al Bawaba, chart from TradingView.com