Can Ethereum ‘Outshine’ Bitcoin and Become an ‘Institutional-Grade Asset’?

Key Insights:

  • Ether (ETH) price is up nearly 70% since mid-June price lows.
  • A recent report suggested that Ethereum could attract widespread institutional interest from investors in the future.
  • Data highlights that Ethereum outperformed in several adoption metrics over the last few months. 

The larger cryptocurrency market’s attention has been shifting towards the top altcoin, Ethereum, for quite some time now. It isn’t just the much anticipated upcoming Merge or the recent price appreciation ETH saw.

Notably, ether price is up nearly 70% since mid-June price lows. Furthermore, the top altcoin by market cap has outperformed the leading cryptocurrency bitcoin (BTC) by close to 40% over that span.

‘Booms, Busts, and Bitcoin’, a recent Bloomberg Intelligence report, suggested that Ethereum (ETH) could attract widespread institutional interest from investors in the future.

So, with ETH price outperforming BTC over the last couple of months, can Ethereum rise and shine from the bear market and emerge as a ‘global institutional-grade asset’?

Can Ethereum be the King?

The cryptocurrency market has had one king coin since its inception, with bitcoin leading the race as the top cryptocurrency by market capitalization. Ethereum has carved its niche over the last few years not only as an altcoin or cryptocurrency but also as a technology.

After ETH price gains outperformed BTC over the last month, speculation about whether Ethereum could continue outperforming bitcoin started to resurface. However, as the larger market seems to recover from the macro-bearish trend, the more crucial question is whether The Merge could keep ETH’s price going or would price need other catalysts on the way.

Interestingly the report published on August 3 presented that The Merge, scheduled for September 2022, could act as a possible catalyst transforming Ethereum into ‘a global institutional-grade asset.’

The data further highlighted that Ethereum outperformed in several adoption metrics such as active users, non-zero balance addresses, and transactions “in absolute terms to the last bear market and relative to Bitcoin.” The same meant that ETH not only performed better than it did over the last bear market but also outperformed BTC across the abovementioned metrics.

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Ethereum Fundamentals Dashboard | Source: Bloomberg Crypto Outlook

ETH Adoption Metrics Holding Solid

Bloomberg data further presented that ETH non-zero balance addresses were at an all-time high (3-year 100% percentile) – almost double that of the Bitcoin network as of August 2022. ETH active addresses were also flat year-on-year, noting a 5% rise.

Ethereum active addresses were 113% higher than three years ago, outperforming Bitcoin, which was down 30% over the same period. Furthermore, transaction count has remained firm YoY, with transfer volumes down only 7% despite a price fall of 29%.

One of the most pressing issues around the Ethereum network – its network fee, also came as a relief as price action picked up. Data from Kaiko’s research presented that the network recorded its lowest average transaction fees of $3 on August 4. The current levels were also the lowest transaction fees the network has seen since December 2020.

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Ethereum Transaction Fees | Source: Kaiko Research

This drop in transaction fees is a relief to the Ethereum network and its users, as the community in the past has often criticized the high transaction fee. Owing to the lower fees and glimmering adoption metrics, analysts believe that the same could drive the adoption in the decentralized finance (DeFi) and non-fungible tokens (NFT) space as well.

Short-Term Fate Still Shaky

Despite ETH’s price appreciating by nearly 64% from the June 2022 price lows, ETH’s press time price was still down 67.03% from its all-time high. At the time of writing, ETH traded at $1,598.45 after the coin faced considerable resistance at the $1600 support/resistance line from bears.

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ETH Daily Price Chart | Source: FXEmpire

A look at ETH’s daily chart suggests that the next immediate resistance sits at the $1,600 and the $1750 mark. As BTC notes a short-term price pullback, ETH’s price lacks the primary strength to push above crucial resistance marks because of the current market structure.

Nonetheless, amid anticipation of the upcoming Merge that marks the network’s transition into a Proof-of-Stake (PoS), analysts expect a solid recovery for the Ethereum ecosystem and ETH price.

However, the short-term and mid-short-term metrics still leave a doubt whether this recent price uptick was just a bear market rally or are fundamentals strong enough to push the market.

That said, for now, even though ETH’s long-term trajectory looks secured, speculating whether ETH would outperform bitcoin could be far-fetched thought. Furthermore, bitcoin’s market dominance, monopoly, and first-mover advantage could continue to give the edge to the king coin in the near and mid-term.

After Bitcoin’s Highest Monthly Gains in 9 Months, Is a Reversal Confirmed?

Key Insights:

  • Bitcoin, ETH, and major altcoins have made consecutive gains for the last two weeks.
  • On August 1, BTC’s price faced rejection at the $25000 mark as bears pushed the price lower over the day.
  • The $25000 mark can act as solid resistance as BTC’s Call option open interest remains heaviest around that level.

As a new week and a new month began, the larger sentiment around cryptocurrencies seemed to be tilting towards bullish. Bitcoin (BTC), ether (ETH), and major altcoins have made consecutive gains over the last two weeks as crypto bulls push for higher gains.

However, despite the long-term bullish price momentum, at press time, bitcoin’s price had fallen below the $23000 support mark. So, do reversal notions still stand, or will BTC price make another revisit to the lower support zones?

Bitcoin Starts August on a Low

After the gains made over the last couple of weeks, it made sense for BTC’s price to take a breather. As the global market cap reached the $1 trillion mark and optimism in the crypto market seemed renewed, bears still stood in the way of bitcoin and the $25000 level.

On August 1, BTC’s price faced rejection at the $25000 mark as bears pushed the price lower over the day. BTC’s price fell to as low as $22850 as a new month took off.

On a daily chart, BTC’s price has made a series of higher highs and lower lows for the most of July. However, on August 1, the top crypto’s price saw a pullback below the $23000 mark leading to considerable skepticism about BTC’s trajectory over this month.

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BTC Price Action | Source: FXEmpire

Additionally, bitcoin’s daily RSI presented a weakening buying pressure as RSI made a soft downward slope from July 31 onwards.

Even though bitcoin’s price is up by nearly 30% from the cycle low of $17664 made in June this year, the top crypto is still down 51% year to date.

That said, bitcoin dominance, which presents the BTC market cap relative to the rest of the cryptocurrency market, sat at 42% – a mere 2% jump from January 1 levels of 40%.

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Bitcoin Dominance | Source: Statistica

Macrotrend Remains Intact

As we advance, the $25000 mark can act as a strong resistance as BTC’s Call option open interest remains heaviest around that level. High Call option open interest presents the levels where bullish investors can accumulate more.

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BTC Options Open Interest By Strike Price | Source: Coinglass

Open interest by strike saw a notable change from last week as there was an increase in puts purchased at the $23,000 price level. Puts represent option but not an obligation to sell at a specific price.

The rise in puts at the aforementioned levels can be interpreted as traders buying downside protection if prices slump below $23,000. At press time, BTC was trading just below the $23000 mark, but on a one-hour chart, BTC’s price noted minor bullish momentum placing price above the key $22750 mark.

Confirming the macro-bullish trend, crypto trader and analyst Josh Rager presented that the most recent monthly close was the ‘first monthly close in green since March 2022.’

Lastly, the weekly RSI provided a bullish outlook, as the indicator finally moved outside its oversold region. RSI positive momentum further presents a deviation from the more significant bearish trend that has been shadowing the market.

However, the larger price structure still follows a bearish trendline that has been intact after BTC made an all-time high. A breakout from that more significant bearish line would be critical for the bullish reversal to be confirmed.

Everything you Need to Know About Ethereum Gas Fees

Key Insights:

  • Gas fee defines the amount of ether (ETH) required by the blockchain for a user to interact with the network.
  • To successfully conduct a transaction on the Ethereum blockchain, a gas fee is charged.
  • High Ethereum gas fees have often pushed users away from the network towards Ethereum killers. 

Apart from the larger bear market tunes, another phenomenon from the crypto space that has gained considerable recognition in the past is Ethereum’s gas fee. The debate around high gas fees and arguments about the Ethereum Merge solving the gas fee issue has surfaced regularly on crypto Twitter.

While understanding Ethereum’s gas fee isn’t rocket science, the sheer volumes of text available on the web to explain the relatively simple phenomenon can often confuse the masses.

In layman’s terms, considering the Ethereum blockchain to be a network, gas fee is a sum all users must pay to perform any function on the network. Over the last few months, amid anticipation of the Merge, analysts and researchers have debated whether the Merge could, in fact, reduce gas prices.

Before understanding how gas prices might be affected after the Merge, it is crucial to take a look at what Ethereum’s gas fees mean. This article shall cover everything you need to know about Ethereum gas fees before the Merge.

Ethereum’s Fuel – Gas Fee

Ethereum.org states,

“Gas is essential to the Ethereum network. It is the fuel that allows it to operate, in the same way that a car needs gasoline to run.”

Gas is the term used to define the amount of ether (ETH) required by the network for a user to interact with the network. More specifically, it refers to the unit that measures the amount of computational effort needed to execute specific operations on the Ethereum network.

A transaction on Ethereum requires gas to be completed successfully. Gas fees are paid in Ethereum’s native currency, ether. The chart given below shows the Ethereum Average Gas Price.

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Ethereum Average Gas Price | Source: Ycharts

At the time of writing, Ethereum’s Average Gas Price was at a level of 13.69, down from 15.79 a day before and down from 24.90 one year ago. This means that the Average Gas Price has seen a 13.32% pullback on the daily and 45.01% pullback on the yearly window.

The gas fees paid by users and developers are used to compensate Ethereum miners for the energy required to verify a transaction. These fees also add a layer of security to the network by making it too expensive for bad actors to spam the Ethereum blockchain.

As Ethereum transactions require computational resources, there is a fee associated with each transaction. To successfully conduct a transaction on the Ethereum blockchain, a gas fee is charged.

When talking about gas fees, the word gwei often pops up. Well, gas prices are denoted in gwei, which itself is a denomination of ETH – each gwei is equal to 0.000000001 ETH.

Gas Fee and Ethereum Upgrades

The way transaction fees on the Ethereum network were calculated before the London Upgrade of August 2021 has changed. The London Upgrade was implemented on 5 August 2021 to make transacting on Ethereum more predictable for users by overhauling Ethereum’s transaction fee mechanism.

Ethereum’s official website highlights that the benefits of the London Upgrade include better transaction fee estimation, quicker transaction inclusion, and offsetting the ETH issuance by burning a percentage of transaction fees.

Ethereum had fixed-sized blocks before the London Upgrade. When the network demand was high, these blocks operated at total capacity. This led to users waiting for high demand to reduce to get included in a block, which led to a poor user experience.

The Upgrade introduced variable-size blocks to Ethereum, each block with a target size of 15 million gas. This time, however, the size of blocks will increase or decrease in accordance with network demand, up until the block limit of 30 million gas (2x the target block size).

Compared to the pre-London gas auction market, the currency transaction-fee-mechanism change causes fee prediction to be more reliable, according to ETH developers.

Gas Fee Post The Merge

Over the last couple of years, Ethereum’s high gas fees have received criticism and pushed many users towards Ethereum-killers. Rival layer-1 (L1) blockchains like Solana, Cardano, Avalanche, and others have seen a relative rise in DeFi TVL and higher adoption owing to the high gas fees on the Ethereum network.

However, many in the market believe that the upcoming Merge could change high Ethereum gas fees. Notably, the Merge is the most significant update to Ethereum since its launch in 2015.

The post-merge network – Ethereum 2.0 or Eth2, essentially refers to a set of upgrades that would make Ethereum more scalable, secure, and sustainable. Data from an Ethereum blog highlights that PoS is nearly 2000x more energy efficient, reflecting at least a 99.95% reduction in total energy use.

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Source: Consensys

Nonetheless, opinions have emerged presenting how the much-anticipated Merge might not reduce gas fees. DeFi researcher Vivek Raman shared in a recent Tweet that Ethereum’s high gas fees are because of the increased block space demand and not a function of the “consensus mechanism.”

Raman further added that the purpose of the Merge is to deprecate Ethereum’s proof-of-work consensus mechanism and replace it with proof-of-stake. He concluded that the network fees aren’t expected to come down; instead, users can use layer2 solutions for reduced costs.

Can Ethereum Rally to $2000, as BTC Price Reclaims $23,000?

Key Insights:

  • On July 19, the top cryptocurrency – BTC, jumped to as high as $23,500 on some exchanges.
  • The recent gains followed a volatile response across markets early in the week.
  • Ether, the second-largest cryptocurrency by market cap, is up by nearly 45% over the week, outpacing most of the top 100 crypto assets by market cap.

The larger cryptocurrency market finally seemed to recover from the bearish blues as macro conditions slowly turned to favor risk assets. The king crypto bitcoin (BTC) oscillated close to $22,000 on July 19; however, in the late trading hours of the same day, the top crypto jumped to as high as $23,500 on some exchanges.

As the July 19 candle approached a close, both bitcoin and ether (ETH) were up by 7.4% and 7.1% on the daily chart at the time of writing. While ETH has been the star performer of the week, charting nearly 45% gains on the weekly chart, bitcoin’s price has finally picked up the pace.

BTC Price Takes Off

This week, Bitcoin and the crypto market finally caught a breath of relief as the top asset rallied from $18,999 to the upper resistance range at $23,500. The recent gains followed a volatile response across markets early in the week, as US headline CPI inflation hit a forty-year high of 9.1%.

Over the last 24 hours, bitcoin price found support around the $21,600 mark and climbed above the $22,000 resistance. In the previous six hours from press time, BTC price broke the $23,500 resistance, briefly establishing above the 21 simple moving average.

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Bitcoin price action | Source: FXEmpire

As recovery continues, bears will defend the $24,450 mark with their might. That said, a short-term pull back to the $22,000 zone was seen, but dips were limited, and the price presented bullish momentum on both long-term and short-term charts.

At press time, BTC was trading at $23,428.68, noting an over 7% rise on the daily chart. Going forward, BTC’s bullish trajectory could provide ample scope for altcoins to rally.

Ethereum Rallies as The Merge Approached

Ether, the second-largest cryptocurrency by market cap, is up by nearly 45% over the week, outpacing most of the top 100 crypto assets by market cap. While there are quite a few speculations around ETH’s bullish run, the upcoming Ethereum merge is one of the primary catalysts of the price actions.

ETH traders are turning bullish as developers are inching close to the end of a multi-year, hyper-complicated upgrade. Amid the high social anticipation of the Merge, the total ETH supply in profit has now increased to 56%, after hitting lows of 41% before the current price rally.

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Source: Glassnode

Recent data from Glassnode also highlighted that over the last month, almost 7.8% of the circulating supply of ETH has transacted on-chain and changed hands.

ETH’s recently gained bullish momentum was also evident as the Number of ETH Addresses in Loss (7d MA) reached a 1-month low of 39,112,029 at press time.

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Source: Glassnode

That said, there is still considerable time for The Merge as the final steps that will effectively move Ethereum activity over to the Beacon Chain are planned for September this year. Ethereum educator, Superphiz.eth further highlighted in a Tweet that Goerli will be the last public testnet to run through the merge transition and should do so around August 11.

If everything goes well with Goerli, the mainnet merge is expected to float in the week of September 19.

ETH’s price has established itself above crucial resistance levels over the last few days. Over the coming days, the $1750 and $2000 levels could act as essential resistance zones for the top altcoin.

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ETH Price Action | Source: FXEmpire

That said, if the bullish momentum weakens, a pullback to the $1500 mark could be expected in the near term. However, looking at the larger market’s bullish momentum, a positive price action could be witnessed by crypto assets.

Cardano Price Prediction: Can ADA Rally Above $0.5, Amid Bullish Momentum?

Key Insights:

  • The Marco-market conditions still looked sluggish, but the crypto market cap noted a bullish bounce.
  • MATIC and UNI noted the highest gains among the top 100 cryptocurrencies by market cap.
  • For ADA to chart a true recovery, the coin’s price would need a strong push from bulls above the $0.50 mark over the weekend.

A spike in inflation rates and elevated uncertainty led to investors’ appetite for risk-taking dropping in June. Last month, the US annual inflation rate was raised from 8.6% to 9.1%, as opposed to the forecasted 8.8%.

Reportedly, this month’s FOMC meeting discussed concerns around the effect of rate hikes on the US economy. Minutes of the meeting further showed that members considered a 50-basis point rate hike more appropriate.

The Marco-market conditions still looked sluggish, but the crypto market cap noted a bullish bounce on Thursday. On Wednesday, the NASDAQ 100 fell by 0.15% after losing 0.95% a day before and continued the downwards trend at press time. While S&P 500 saw a 0.40% fall towards the end of June 14.

In a previous FXEmpire article, analyst Bob Mason presented that on Wednesday, investors poured $38 billion back into the market to take the crypto market cap up $14 billion for July. Seemingly, the crypto market cap’s upward momentum started to take off on Wednesday amid rising pressure from bulls.

MATIC, UNI Lead Gains as ADA Pumps 5%

As bullish market updates strengthened the crypto narrative, certain projects like Polygon and Uniswap garnered more attention than others. MATIC and UNI noted the highest gains among the top 100 cryptocurrencies by market cap at the time of writing.

MATIC price levels started gaining bullish momentum on July 14 after getting selected for the Walt Disney Company’s business development program. The coin’s price surged by over 22% to a high of $0.659 – its highest level in almost a month.

As bulls strength, the gains, MATIC’s price also climbed above its 50-day exponential moving average (EMA), which has acted as a crucial resistance since MATIC’s gains in January 2022.

On the other hand, DeFi token UNI noted a close to 20% surge in price over the last 24 hours after broker Robinhood Markets added the token to its crypto trading platform. UNI’s price gained momentum as social sentiment for the coin turned bullish on Thursday after Robinhood announced in a Twitter post.

Some tokens like Cardano’s ADA still took it slow, despite BTC and ETH’s 5% and 10% gains on the daily window, respectively.

Cardano (ADA) Price Analysis

At press time, ADA traded at $0.4436, noting a 4.52% rise on the daily price frame. However, the 8th ranked crypto by market cap was still down by 6.35% on the weekly window. Despite many cryptocurrencies providing a break-even opportunity, ADA’s price still risked a decline to the $0.40 barrier.

In the short term, a daily close above the $4.550 mark could ensure further gains above key resistance levels. For ADA to chart a true recovery, the coin’s price would need a strong push from bulls above the $0.50 mark over the weekend.

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ADA Price Action | Source: FXEmpire

On ADA’s four-hour chart, the relative strength index (RSI) presented a rise in buyers from June 14. A steady surge in buying pressure has favored ADA’s price. Thus, if buying pressure continues to dominate the market and RSI presents net domination from buyers, ADA price could see a healthy uptick.

Additionally, with the upcoming Vasil hard fork, development activity on the Cardano network has picked up the pace. Cardano saw higher Github commits than some competitors like Ethereum, Solana, and Avalanche.

Ahead of the hard fork, the technical director of open-source development at the Cardano Foundation revealed that the node, ledger, network, and consensus appear stable. However, can these positive developments in the larger market and developmental advances push ADA’s price?

ADA’s short-term price movement could be larger market-driven amid high volatility. That said, in the crypto market, nothing is certain it’s best to ‘do your own research,’ especially in a bear market.

Exclusive Interview with Camila Russo: The Intersection of NFTs and Hollywood

Key Insights:

  • Camila Russo is the author of The Infinite Machine.
  • The book will be adapted into a Hollywood feature film, this year. 
  • This will be the first Hollywood film to be made on the top altcoin – Ethereum. 

From Blockchain to Web 3.0 to cryptocurrencies, NFTs and DAOs – there are a lot of new buzzwords that give rise to skepticism. However, supporters of the blockchain and crypto space are focusing on innovation instead of FUDs amid the bear market.

Camila Russo, a Chilean journalist, based in New York, has been trying to warm up the mainstream masses to the crypto and NFT space. Russo founded The Defiant – a media outlet focused on decentralized finance (DeFi).

Being a journalist and storyteller, she is keen on telling another story – about the emergence of Ethereum, which is not only the most important cryptocurrency, after Bitcoin but also a platform for building various applications such as smart contracts.

The Defiant founder has told the story of Ethereum in her book titled The Infinite Machine. The book was also featured in The Wall Street Journal as one of the best in the crypto space.

Published in 2020, The Infinite Machine will be made into a film sometime by the end of this year. More details about the film’s director and team are awaited.

In this FXEmpire exclusive with Camila Russo, the author and executive producer of the film The Infinite Machine, speaks about her book, the upcoming movie, the recent bear market, and much more.

The Infinite Machine

You have written The Infinite Machine, the best-selling novel on Ethereum. Now it is going to be adapted into a Hollywood feature film; how does it feel?

Well, it feels surreal. First of all, writing a book that has had such great feedback and has been received so well by the community has been the most fulfilling thing ever. That was what had me up at night in the lead-up to publishing my book.

When writing my book, I was writing it in a way, hoping it would come alive. And adding color and making, making sure that descriptions were there so that people could imagine what was happening.

It crossed my mind back when I was writing that it would be amazing if this (book) actually was on film. I never really thought that it would happen, but now that it’s happening, it’s hard to believe. I feel grateful, happy, and lucky that this has played out.

When did you first decide to write a book, and what exactly was on your mind when you started writing this novel?

I decided to start writing this book in December 2017. I was at Bloomberg at the time; I was there for eight years, covering markets. In 2017, I was covering cryptocurrencies, and it had always been my dream to write a book. So I was on the lookout for what that story could be.

At the end of 2017, I decided that there was a kind of book material on crypto, and from there, I asked myself, “what’s the biggest and most important story to tell?” For me, it was clear that it was Ethereum. There had already been books about Bitcoin, and I felt there was a lot of information out there about the story behind Bitcoin.

However, there was nothing really on the story of Ethereum. Ethereum is the second biggest cryptocurrency, but it’s also the first smart contract platform. It also drove the whole ICO boom of 2017, so to me, it had already made history and changed the blockchain industry and even the tech industry.

So it was a story worth documenting – whether Ethereum kind of “won” in the long run or not. It was worth having the story of Ethereum’s foundation appropriately documented in a book. That’s how I decided to pitch the idea of writing a book on the history of Ethereum.

In late 2017, I pitched this to an agent and wrote a book proposal. And then April 2018, I ended up signing a deal with a publisher.

NFTs Paving Way for Unique Funding Methods

I also read somewhere that the film’s funding is done in a unique way. Can you tell me a little bit about that?

I was fortunate to be executive producer of the Infinite Machine. So that gives me influence on how the movie is funded. When we started having these conversations, I thought it was important to include the Ethereum community in the funding process. This being the first movie on the history of Ethereum, it just made sense to use Ethereum technology and to bring the Ethereum community on board.

So we created an NFT collection to raise funds for the movie. We aim to raise as much of the budget as possible via NFTs. While we’ll have to complement the funding with traditional methods, at least part of the movie will be funded with NFTs with the Ethereum community. That was just very important to me to do.

This NFT collection is a collection of over 10,000 NFTs; the number is linked to EIP 1559. We brought on 36 artists from emerging nations to design different versions of the Ethereum logo. We then made them into mosaics and combined these mosaics to make 10,000 plus collections.

Bear Market Blues to Last Long?

Recently, the NFT sales fell to yearly lows. What do you have to say about that? Looking at the current bear market, what does the future hold for the DeFi and NFT space?

I’ve been in crypto for a while, and obviously, the space has ups and downs. It’s a very volatile market. But with so much promise, sometimes investors and traders get ahead of themselves and bring in a lot of speculation and hype that overcomes the fundamentals in the space.

I think that was the case in the last couple of years. It happened in 2017; it happened in 2013. However, beneath this underlying hype, there continues to be real innovation and a technological revolution with blockchain technology at its core.

So I believe this space will continue growing and continually evolving. Prices will do what they have to do. It’s not just a crypto crash but a macro crash; there are many kinds of macro headwinds.

Also, reality caught up with the cryptocurrency space and dragged everything down, but projects with real fundamentals and substance will survive and continue to thrive past the bear market.

Do you think that with the internet machine becoming a Hollywood film, the perception of cryptocurrencies, blockchain, and Web 3.0 might change for the general audience in the long run?

That’s certainly my hope with the film; if I manage to do that, that would be like my dream come true. When I set out to write the Infinite Machine, it was with the mainstream audience in mind so that anyone could pick it up and enjoy it (the book), whether they had even heard of Ethereum or not.

I think movies have the capacity to reach an emotional side that maybe books can’t. Books sometimes appeal to a more rational side, and fewer people end up reading books, but movies have a mainstream appeal.

Movies can move people in a way that books can’t because it’s a different medium. So I’m excited to see whether the film, the Infinite Machine, can have this effect on people. I hope that it can bring this message across; you know, this is something that’s revolutionary and provides an alternative to how things have traditionally been done.

Many people say that “crypto is dead” as soon as the market goes down. What do you have to say to those people and that sort of FUD?

I would tell them there’s much more to crypto than prices. Luckily, real use cases and applications are working and delivering value with real users and volume. If you go to where builders are, if you go to conferences, especially hackathons, you will see that the crypto market is more alive than ever and continues to grow.

Builders indeed keep building even in bear markets; in fact, it’s a better time to build because there’s no distraction of prices going up and all this hype. Many times, the more valuable applications get built in the bear market because you’re forced to make something useful.

When money is flowing in, you can get rich by doing a random 10K NFT collection; then, you’re not forced to build something innovative and interesting; In the bear market, that changes. So it’s actually a time when crypto gets even more enjoyable. History is an indication what gets built now in the next few months of the bear market will be what fuels the next bull run.

Are Cryptocurrency Payments the Future of Travel and Retail?

Key Insights:

  • Cryptocurrencies have become increasingly popular for investment and transactions over the last two years.
  • Owing to the growing consumer interest in crypto, online merchants and retailers have started accepting payments in bitcoin and other cryptocurrencies.
  • Cryptocurrencies rose to fame as a payment method in the retail and tourism sector. Still, will the bearish blues hamper the future?

Over the last couple of years, the cryptocurrency sector has gone from being a speculative asset class to achieving massive mainstream adoption. Cryptocurrencies such as bitcoin (BTC), ether (ETH), Dogecoin (DOGE), and a few others saw a meteoric rise both in terms of retail and institutional adoption.

Investors’ risk appetite rose when the 2020 bull run took off; since then, cryptocurrency payments have also witnessed a sheer rise in number. As cryptocurrencies rose to fame, in 2021 amid high market euphoria, the top cryptocurrency bitcoin made an all-time high of $69,000.

Consequently, over the last two years, cryptocurrencies have become increasingly popular for investment and transactions. In fact, despite the recent long-drawn bearish market, crypto transactions and investments have become a standard part of the finance landscape.

On 14 January this year, Tesla started accepting Dogecoin as a mode of payment on select merchandise. However, it’s not just big institutions or retail that are inclining towards crypto payments; of late, tourism has also been touched by the crypto wave.

Retail x Cryptocurrencies

Cryptocurrencies have gained traction in the financial world in recent years. A growing number of traditional investors have allowed payments in crypto for consumers and clients.

Bitcoin and a few altcoins are becoming widely accepted as consumers, and online stores realize the potential of digital currencies. A report released by Goldman Sachs in January 2022 predicts that the digital economy is an $8 trillion-dollar opportunity.

It’s no wonder that online merchants and retailers have started accepting payments in bitcoin and other cryptocurrencies owing to the growing consumer interest in the space. This also allows these firms to position themselves as developing brands in the blockchain and Web 3.0 space.

Surprisingly, Microsoft was one of the early adopters of bitcoin in 2014 when it began accepting the cryptocurrency as payment to buy games, apps, and other digital content in the Microsoft Store for platforms like Windows Phone and Xbox.

Interestingly, modern digital payments giant PayPal began accepting bitcoin in September 2014 — three months before Microsoft boarded the crypto train.

Additionally, several retailers like Whole Foods, Home Depot, GameStop, Newegg, Starbucks, and AT&T now accept bitcoin and other forms of cryptocurrency in their retail stores.

Recent data shows that, as of 2022, an estimated global crypto ownership rates at an average of 4.2%, with over 320 million crypto users worldwide. Quite a few global brands, institutions, and retailers have now started to accept or are in plans to shift to crypto payments.

Tourism x Cryptocurrencies

While the retail sector often takes the limelight when talking about crypto payments, retailers aren’t the only ones showing interest in the space; Cryptocurrencies, Web 3.0, and blockchain technology now have use cases across industries, including tourism. Not only has the travel industry embraced digital assets, but the intersection of the two sectors has also given rise to a new genre of operations – crypto tourism.

Crypto tourism includes funded or booked trips using cryptocurrencies or going to crypto-friendly destinations. The phenomenon also includes traveling for crypto and blockchain events, seminars, and conferences which have increased significantly over the last few months after the pandemic subsided.

Interestingly, several airlines, tour operators, and travel aggregators have begun accepting crypto payments. Emirates Airlines had announced that it would soon accept bitcoin as a mode of payment. While Latvian carrier and Air Baltic already accept crypto payments.

Latvian airline airBaltic was the world’s first airline to accept bitcoin payments for its flight tickets in 2014. Now the company also accepts ether and Dogecoin. Moreover, airfare websites like Cheapair.com and Travala.com also accept crypto payments. In addition to that, tours and activity booking sites like GetYourGuide have also started accepting payments in Dogecoin.

In fact, nowadays, crypto geeks are traveling to several crypto-friendly tourist destinations where digital payments are widely accepted. Crypto-friendly destinations include places like the Bahamas, which has its own digital currency called the Sand Dollar.

Is the Future Bright?

Looking at the growth of cryptocurrencies as a payment method over the last five years presents optimism for the future. However, the recent bear market blues have significantly affected the sector, bringing the cryptocurrency market cap down to a low of $887.24 billion at press time from a high of nearly $3 trillion last year.

The bearish sentiment and rising interest rates have made investors skeptical of entering risky asset markets. Nonetheless, looking at the long-term growth, it can be said that cryptocurrencies could play a crucial role in shaping the future of payments.

Top 5 Cryptocurrency Pairs to Watch this Week: BTC, ETH, AAVE, QNT, RUNE

Key Insights:

  • Bitcoin and ether looked at solid weekly gains as the top two crossed crucial support levels.
  • Ether and Aave rallied on high social sentiment alongside renewed bullish momentum.
  • Quant and THORChain’s RUNE also saw gains, but can they continue over the next week?

Despite the recent short-term bullish momentum and BTC’s high daily gains, macro uncertainty still left investors skeptical of a true recovery. Nonetheless, the larger sentiment turned for the better over the last week despite a rise in US yields and Fed tightening bets on strong US jobs and service sector survey data.

US tech stocks posted solid gains over the last week. The Nasdaq 100 ended the week with nearly 4.5% weekly gains. Of late, top cryptocurrencies like bitcoin have formed a higher correlation with tech stocks and indices.

The last week, was relatively bullish for the traditional market as well as cryptocurrencies as BTC rebounded to as higher as $22,500. The total crypto market cap resumed its upward trend, but weekend blues pulled down BTC’s price and the global crypto market cap.

Over the last few months, investors have constantly been concerned that the US and the global economy is weakening towards recession. Thus, market participants are steering clear of risky assets.

For now, however, the recent bullish momentum fetched decent weekly gains for the top crypto and a few altcoins. The crucial question remains whether the recent gains are, in fact, a recovery of another fakeout.

So, here are the top five cryptos to watch out for in this new week.

Bitcoin (BTC)

On July 7, BTC’s price broke above the crucial $21,400 mark, but bitcoin bulls could not keep up the bullish momentum above the higher $22,000 mark. Bitcoin’s price pullback from the $22,500 mark indicated that bears were still in control.

FXempire, BTC, Crypto, bitcoin
Bitcoin (BTC) Price Action | Source: FXEmpire

On a daily chart, BTC’s price saw a green candle for six consecutive days alongside a rising relative strength index (RSI). A rising RSI indicates buying pressure rising in the market as buyers dominate the scene.

Daily RSI highlighted that until July 8, buyers gained strength in the market, however, bears defended the $22,500 resistance with their might reversing the bullish momentum. This week, BTC’s trajectory could be crucial to watch as larger market gains would depend on the top coin’s track.

Owing to the recent gains, many in the market believed that BTC’s price bottom was in, however, CryptoQuant analysts cautioned investors and traders to ‘be careful.’

Notably, the High Leverage Ratio shows that the crypto market is still moving by futures market.

From the end of 2021, the Leverage Ratio rose for a certain period and then always fell sharply with the BTC price down. This situation kept happening until recent days.

Furthermore, Funding Rates are near zero. Usually, when BTC reaches the bottom, the funding rate drops and rises sharply. That didn’t happen at the recent low of $17,600.

FXempire, bitcoin, Crypto, BTC
Source: Crypto Quant

Additionally, the analyst said,

“We can’t ignore about possibility for Recession from Liquidity supply perspective. Even if BTC may rise a little more, we should also expect further BTC drop after that.”

Ethereum (ETH)

While the weekend saw decent profit-taking amid pre-macro event caution, ETH’s technicals presented a bullish scenario with the possibility of a breakout to as high as $1,700.

FXEmpire analyst, Joel Frank, in a recent article, presented,

“If Ethereum can muster a push above the $1,280 level, that would open the door for a swift rally towards its 50DMA around $1,440.”

At the time of writing, the top altcoin traded at $1,163.22 vs USD noting a 4.26% loss on the daily chart. However, ETH’s last week was fruitful as the coin was up by 10.65% on its weekly chart.

FXempire, ETH, Crypto, ethereum
Ethereum (ETH) Price Action | Source: FXEmpire

In the near term, if a push from bulls can place the coin above the $1200 mark, the same can ensure higher gains.

Aave (AAVE)

AAVE bulls led a recovery above the 50-day simple moving average just under the $80 mark on July 9. The rise in buying pressure indicated a likely change in trend.

With RSI in the positive zone alongside AAVE’s 36.46% weekly gains, it was evident that bulls are attempting to gain the upper hand in the market.
Over this week, the $85 and $93 mark could act as strong resistances for the token. A push from bulls above the said levels could point towards a solid recovery for the coin.

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Aave (AAVE) Price Action | Source: FXEmpire

Quant (QNT)

Quant’s native token QNT saw some amusing gains over the last week as larger market momentum picked up. QNT’s bullish trajectory indicates that a bottom may be in place.

After almost two months, a significant price uptick took the token above the $77 mark. As QNT bulls pushed their way, the coin’s price picked up, establishing above $76. Over this week, if bullish momentum continues, the next crucial price levels to watch will be the $89 and the $100 mark.

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Quant (QNT) Price Action | Source: FXEmpire

THORChain (RUNE)

RUNE traded at $2.27 at press time, with a 4.64% loss on the daily price window. However, the token was in the top 5 weekly gainers of the last week. As the week closed, the coin presented 25.94% weekly gains at press time.

The altcoin’s price presented a tight range bound movement between the $1.77 and $2.40 mark since June 12. A move above the $2.50 resistance in the short term could help the coin regain market momentum.

FXempire, RUNE, Crypto
THORChain (RUNE) Price Action | Source: FXEmpire

A rise in RSI presenting a higher buying pressure could indicate a change in trend over this week.

Does the Crypto Crash Affect Web3’s Future?

Key Insights:

  • Over the last two months, the crypto markets have witnessed massive corrections.
  • The global cryptocurrency market cap has shrunk to $930 billion, but traditional markets are taking a beating too.
  • The Web3 and blockchain market is anticipated to register a CAGR of 45.20% despite the recent crash.

American internet entrepreneur Chris Dixon has defined Web 3.0 as ‘the internet owned by users and builders orchestrated with tokens.’ While Dixon’s definition of Web 3.0 doesn’t describe the entirety of the same, it does, however, present a decent picture of what Web 3.0 is truly capable of.

More often than not, mainstream media and newbies put words like blockchain, NFTs, Web 3, DeFi, and many others under a more significant umbrella term – cryptocurrencies.

Over the last two months, crypto markets have witnessed massive corrections. News pieces and blogs have been filled with narratives of ‘crypto is dead.’ Amid the larger bearish undertone, a lot of critics and analysts have argued whether the recent crash would derail the future of Web 3.0 and blockchain.

So, Is Crypto Dead?

Well, while some say ‘crypto is dead,’ others believe that it could just be playing dead. Even though crypto market enthusiasts are desperately waiting for cryptocurrencies like bitcoin, ether, and altcoins to bounce back with their full might, it wouldn’t be wrong to say that a significant recovery could be a little optimistic for now.

The global cryptocurrency market cap has shrunk to $938.66 billion as of July 7, from the $3 trillion high it touched in November 2021. While numbers present a gloomy picture, it’s not just the crypto market that’s bleeding.

2022 has also been a year of losses for major indexes. High inflation, rising interest rates, and growing concerns about corporate profits and economic growth affect investors’ appetite for risk. The technology-heavy Nasdaq Composite Index is down over 25% through roughly the first six months of 2022, while the S&P 500 Index is down by nearly 20%.

The crypto market has been ravaged by weak global cues amid heightened inflation and interest rate hikes. Crypto investors and traders are now wondering whether the market will bounce back again this year.

While tension and panic continue to plague crypto investors, it needs to be kept in mind that macro market conditions haven’t been ideal. In fact, the higher correlation between cryptocurrencies and the traditional finance markets could be viewed as a positive move as this cloud mean that cryptocurrencies as an asset are maturing.

Innovation Stays Intact

While cryptocurrencies being an asset class, are prone to volatility and price change, pretty much like stocks, blockchain technology on which Dapps are made, and crypto functions is an ever-growing technology.

Notably, a May 5 report by Prophecy Market Insights presented that the global Web 3.0 blockchain market accounted for $1231.54 million in 2020 and is estimated to be $87761.35 million by 2030. The sector is anticipated to register a CAGR of 45.20%.

On the other hand, according to another report, the IT services market is expected to register a CAGR of about 10.36 % during the forecast period, 2022-2027.

Thus, numbers indicate a healthy growth graph for blockchain technology and the Web 3 market. Seemingly, innovation continues to take place even though the price trajectory was largely disappointing for the crypto crowds.

Crypto narratives in mainstream media have also been plagued by standalone events like Terra and Celsius’s collapse over the last few months. The marketwide sell-offs, lower open interest, and larger-scale lay-offs in the crypto market added to the space’s bearish pressure.

A Crypto Recovery Incoming

This isn’t the first time the crypto market is seeing a significant pullback; in 2015, 2018, and then 2020, during the pandemic – the global crypto market has seen its ups and downs. Over the many bear markets and long-drawn price pullbacks, the technology behind cryptocurrencies has only evolved.

Taking a look at the previous market cycles highlights that market volatility and macroeconomic conditions have often affected the price of cryptocurrencies pulling the larger market down. While bear markets give rise to lay-offs and selloffs in the market, portraying doom for the space, it’s only the tip of the iceberg.

As the technology and the Web 3.0 narrative grows, a certain market maturation silently takes place on the side. Nonetheless, critics of the space have long argued that using digital currencies for online interaction gives users a financial motivation to take actions previously freed of commercial incentives. The same could financialize online services and lead to interactions becoming a business.

However, crypto geeks and supporters of the space argue that crypto critics fail to reflect the highly diverse nature of online services.

That said, a lot of traditional finance giants like Amazon, Meta, Google, HSBC, and IBM have also embraced crypto and blockchain. A majority of institutions cite consumer demands and the larger adoption of Web 3 as a reason behind turning towards the space.

Nonetheless, the adoption narrative has received a beating due to the larger bear market. In fact, the bearish blues have slowed down the larger crypto adoption, especially since newcomers are cautious about their entry into the space. However, the crypto crash hasn’t derailed the crypto or Web 3 adoption, if at all, it has delayed the pace of growth.

Dogecoin (DOGE) and Shiba Inu (SHIB) Price Prediction – July 5

Key Insights:

  • The crypto market finally turned green after spending the majority of the last week in the red.
  • DOGE and SHIB had shown notable increases in network activity over the past few weeks.
  • Dogecoin and Shiba Inu prices still needed a strong push from bulls before calling it a recovery. 

Top cryptocurrencies saw a much-needed relief bounce as bitcoin (BTC) retested the $20,470 support/resistance mark. While most of the top altcoins, as well as meme coins, saw minor price gains, the bullish uptick didn’t last very long.

Dogecoin, Shiba Recovering from Weekend Blues?

The crypto market finally turned green after spending the majority of the last week in the red. In the late hours of July 4, the top cryptocurrency, bitcoin, briefly climbed above the crucial $20,000 psychological barrier.

Market hopes ignited briefly as the global crypto market capitalization climbed back above the $850 billion mark. However, with the larger market-facing consolidation after the short-term gains, the global crypto market cap stood at $886.75 billion, noting a 1.40% decrease over the last day.

While the recent gains were short-lived, CoinMarketCap data highlighted that on June 4, an inflow of $50 billion entered the market. These inflows reflected an over 5.78% climb in the last day, as the total crypto market volume made an over 50% increase over the same time.

At press time, BTC traded at $19,696, still struggling to make its way above the $20,000 mark. So, how can meme tokens perform with the market back in red?

Limited Gains for DOGE and SHIB

On July 1, data from blockchain analytics tool Santiment, highlighted that DOGE and SHIB had shown notable increases in network activity over the past few weeks. Even though on-chain data shows an uptick in address activity for meme coins DOGE and SHIB, price-wise, the picture doesn’t look too pretty.

DOGE and SHIB along with major altcoins, saw short-term pumps as the Fourth of July weekend drew to a close. Additionally, data from Cointrendz presented that despite the recent uptick in the network activity, Dogecoin, the leading meme token was not among the most mentioned coins on Twitter on July 6.

In the early hours of July 6, DOGE’s trading volume rose by 20%, reaching above $360 million. However, weakening price action and BTC’s return below the $20,000 mark have led to pullbacks for altcoins.

Thus, it looks like the larger market consolidation could wipe away DOGE and SHIB’s weekend gains. At press time, DOGE traded at $0.0687, gaining 1.12% price over the last day. On the other hand, SHIB traded at $0.00001048, noting 2.01% gains on its daily chart.

Meme Coin Summer?

Meme tokens tend to catch the market off guard, with surprise, by tracing sudden gains. More often than not, price pumps for meme tokens are dependent on social sentiment and trade volumes.

Everyone wishes to catch meme coin rallies that make investors gain in double or triple digits; however, looks anticipations of a meme coin summer could be met with disappointment.

In the past week, DOGE prices dipped from around $0.078 to $0.062. While the $0.062 support was defended vigorously by bulls, this defense spurred a short-term upward move back to the resistance at $0.068 and $0.070.

FXempire, Dogecoin, Crypto, DOGE
DOGE Daily Price Action | Source: FXEmpire

Both DOGE and SHIB still oscillated below their crucial resistance levels; however, at press time, SHIB presented higher gains on the daily chart. Shiba Inu’s price was up by 1.67% in the last 24 hours, trading at $0.00001043 at the time of writing.

FXempire, Shiba Inu, Crypto, SHIB
SHIB Daily Price Action | Source: FXEmpire

In the short-term, if SHIB bulls can push the price above the $0.000011 mark, then a recovery above this crucial level could be expected. The $0.000009 mark could act as a solid support over this week.

That said, while fears of a prolonged crypto winter still dominate investor sentiment, many analysts are of the opinion that BTC accumulation trends could eventually lead the market upward.

Here’s what to Expect From Bitcoin and Ethereum in Q3 2022

Key Insights:

  • Bitcoin’s price saw a close to 56% drop in the second quarter of 2022.
  • The global crypto market cap and most of the top crypto assets saw significant pullbacks and rangebound trajectories over the last three months.
  • Largely stagnant futures and options markets and low trading volumes have been a bear market constant.

A long and cold winter in the crypto bear market has left participants looking at price charts to seek relief in patterns. Top crypto assets – bitcoin (BTC) and ether (ETH) have been rangebound around their lower support levels for over a month.

This stagnancy in the market has left investors and traders desperate for gains. As another quarter of 2022 begins, the crucial question remains whether the crypto markets could chart a recovery any time soon?

Another Quarter, Further Losses?

Bitcoin’s price action in the month of June was one of the worst monthly price performances in the coin’s history, with BTC price down by almost 38% over the month. The long-term and short term losses have expelled short-term holders and newcomers, leaving behind only the adamant HODLers.

Glassnode analysts, in a recent report, pointed out that last month’s price action by the top crypto competed only with the 2011 bear market for the crown of the worst month on record. For a sense of scale, BTC prices were sub $10 in 2011.

Bitcoin’s price consolidated over the last week coping with the month’s losses, and maintaining a rangebound momentum around the 2017 all-time-high price of $20,000.

Over the last week price traded down to brief mid-week lows of $18,741, before rallying to close at $19,139 as the week closed. At press time, bitcoin traded at $19,926 noting 4.20% gains on the daily price window.

With the top asset trading, 71.20% lower from its all-time high price of $69,000, the current price action still maintained in the tight higher $21,600 and lower $18,550 range.

FXempire, bitcoin, Crypto, BTC
BTC Daily Price Action | Source: FXEmpire

Can Bitcoin and Ether Losses Follow?

Despite the new quarter taking off, there weren’t any positive changes in the larger sentiment of the market. In fact, to the surprise of many newcomers, analysts believed that bitcoin and ether could be poised for further losses over the coming weeks.

After half a year, BTC and ETH were worse than they were a year ago. Both bitcoin and ether closed Q2 2022 with negative quarterly gains as the macroeconomic environment in the financial markets worsened.

The Federal Reserve continued to hike interest rates while aiming to curb inflation; however, this approach severely impacted the growth and market cap of risk-on assets like crypto. With recession worries on the rise, cryptos could face a tough time ahead.

Japanese financial services giant Nomura revealed in a note on Monday that major economies could enter recession ‘in the next 12 months amid tightening government policies and higher costs. Such recession narratives have also sparked fears among investors and traders.

Notably, bitcoin saw a quarter-to-quarter loss of over 57%, while ether dropped by more than 67% over the same time. Looking at the top two assets’ price action, it could be said that BTC and ETH could accelerate their losses over the quarter.

Historical price data shows that in the previous bear markets of 2011, 2014, and 2018, BTC dropped by 68%, 40%, and 2.8% in the third quarter of the year. This data reflects that the third quarter hasn’t always been pleasant for bitcoin and thus the larger market.

In the future, bitcoin and ether’s price performance and recovery would be dependent on macroeconomic conditions and strong hands in the market that could push the price towards recovery.

With Bitcoin Whales Accumulating, Can BTC Price Recover Above $20,000?

Key Insights:

  • Bitcoin price fell below the psychological support at $20,000.
  • BTC’s price fall led to larger market sell-offs as the global market cap tested the $850 billion mark.
  • While minor accumulation trends still spark optimism in the market, positive momentum still lacks catalysts for a solid recovery.

As the second financial quarter of 2022 ends, the global crypto market remains largely bearish, with a majority of the top 100 cryptocurrencies trading in red on their daily charts.

The top cryptocurrency, bitcoin (BTC), recently governed further market losses as BTC’s price fell below the psychological support zone at the $20,000 mark.

Bitcoin’s price fall on 29 June can be considered a significant move in the coin’s trajectory as it wiped out the short-term gains made by the king coin throughout the week.

Now, the crucial question remains whether a massive pullback awaits the market or will minor setbacks lead the way to an eventual recovery?

Support At $20,000

Bitcoin retested the $19,000 level in Asian afternoon hours after central bankers renewed inflation warnings at the European Central Bank’s (ECB) annual forum on 28 June. At press time, the king crypto traded at $19,068, noting 4.62% daily losses and close to 8% losses on the weekly chart.

With the recent pullback in play, BTC is on track for a record 40% monthly decline. The traditional market also reacted negatively to Jerome Powell’s comments at the ECB meeting. Notably, the US equity market futures declined as S&P 500 futures lost 1.59% while Nasdaq 100 fell 1.9%.

Bitcoin was down by over 55% this year alone and has fallen more than 70% from its all-time high of $68,990.90 made in November last year. Over the last month, the $20,000 mark has acted as a critical support for the top asset.

FXempire, Bitcoin, Crypto, BTC
BTC Daily Price Chart | Source: FXEmpire

After bitcoin’s price fell below the $22,800 support/resistance line, its price has moved in a rangebound trajectory with the $19,000 mark as support. The $19,000 level has acted as a solid long-term support.

Market analysts are of the opinion that the next price retracement could take BTC to the lower support level at the $12,000 mark. This, however, hasn’t deterred some cohorts from entering the market.

Bitcoin Whales and Shrimps Still Stacking

The buy the dip sentiment often echoes strongly when BTC price takes a big dip. However, during long-drawn periods of consolidation, participants are generally cautious about entering the market.

Recent Glassnode data highlighted a peculiar trend that Shrimps holding less than one BTC are stacking. Interestingly, whales or BTC holders with over 1K $BTC are also stacking up sats. On the other hand, miners were distributing.

FXempire, Bitcoin, Crypto, BTC
Source: Glassnode

Notably, small bitcoin holders or Shrimps have been adding to their balance at the most aggressive rate since March 2020. Shrimps are adding at 36.75K BTC/month, which is 0.2% of the circulating supply and 1.36x monthly issuance. This cohort now holds 1.12 million $BTC in total.

Whales are also adding to their balance aggressively, acquiring 140K $BTC/month directly from exchanges. On the other hand, bitcoin miners, who have been under immense income stress of late, are in distribution mode. Excluding Patoshi and Unknown miners (balance is flat), miners hold 65.2K $BTC in aggregate and are distributing 3K to 4K $BTC/month.

FXempire, Bitcoin, Crypto, BTC
Source: Glassnode

So, with Shrimps and Whales still accumulating, can BTC price see some gains? Well, for bitcoin’s price to recover, a price uptick above the crucial $19,500 and $22,000 support/resistance mark would be crucial in the short term.

However, with extreme macro-market conditions, it’s best to sit tight and watch the market unfold and, most importantly – Do Your Own Research (DYOR).

Can Dogecoin and Shiba Inu Recover After Support From Coinbase?

Key Takeaways:

  • Dogecoin was down by nearly 3.19% over the last 24 hours.
  • Similarly, Shiba Inu’s price was down by over 7% in a day.
  • After tracing decent gains over the weekend, these tokens are due for a pullback to their lower support levels.

Bitcoin and other major cryptocurrencies showed weakness in the early trading hours of Wednesday as the global cryptocurrency market cap slipped below the $900 billion mark at press time.

As another month approached its end, the larger crypto market continued to present bearish signals, with the top cryptocurrencies noting losses on their daily window. Meme tokens like Dogecoin and Shiba Inu charted some notable gains over the weekend, but the global market’s bearish momentum pulled DOGE and SHIB’s prices down.

BTC’s price fell below the $20,000 mark, which affected the short-term bullish momentum certain altcoins had gained over the last few days.

Nonetheless, market news kept the enthusiasm alive among meme coin HODLers as Coinbase Commerce announced adding Dogecoin and Shiba Inu to their platform for users.

Despite the recent uptick in positive social sentiment for the two meme tokens, DOGE and SHIB continued their downtrend. So, here’s how DOGE and SHIB’s price action could pan out amid higher sell-side pressure:

Dogecoin (DOGE) Price Analysis

Support from Tesla Chief Elon Musk and social anticipation isn’t always enough to push DOGE’s price up. Recently, Musk candidly admitted in an interview that it was not his idea to support DOGE, but that of his Tesla employees, who encouraged and invited him to support the meme coin.

However, the positive sentiment fueled by Coinbase and Musk wasn’t enough to keep DOGE’s price rallying.

Recently, Coinbase Commerce gave a push to Dogecoin’s utility by enabling users to make instant and free Dogecoin payments to merchants on the platform. Despite the support from Coinbase DOGE price slumped from a high of $0.078 to $0.0669 at press time.

Amid higher sell-side pressure, if bears manage to take control of DOGE’s price the coin could continue its downward trend towards the $0.061 lower support and then to the $0.055 support in the near term.

Nonetheless, an uptick in buying pressure on the one-hour price chart showed DOGE’s rebound from the $0.064 mark, which could play in the coin’s favor in the short term.

FXempire, Dogecoin, Crypto, DOGE
DOGE Price Chart | Source: FXEmpire

Shiba Inu (SHIB) Price Analysis

Since June 18, Shiba Inu’s price has risen by more than 55%; however, with the market’s short-term bullishness fading away, indicators suggest that SHIB, pretty much like DOGE, is primed for a spike in profit-taking.

As per Into the Block’s In and Out of Money indicator, SHIB faced a strong resistance at the $0.000012 mark, where almost 6,280 addresses had previously purchased over 31 trillion SHIB. Once the price nears this higher-level market participants could be tempted to sell their tokens. A rise in selling pressure can further push SHIB’s price down.

For now, the $0.000010 price level will act as the most critical support/resistance zone for Shiba Inu. SHIB’s price break below the $0.000010 level at press time has added to the bearishness for the meme token.

FXempire, Shiba Inu, Crypto
SHIB Price Chart | Source: FXEmpire

At the time of writing, SHIB traded at $0.000009882 and was down by 7.33% on the daily chart. Further correction to $0.000008 could be likely if SHIB’s price breaks below the $0.000009 mark.

Here’s What Happened With Celsius and What’s to Come

Key Insights:

  • Celsius has paused withdrawals and transfers on the platform since June 12.
  • The network’s management looked to avoid bankruptcy filing regardless of advisers and lawyers recommending filing for Chapter 11 bankruptcy.
  • Amid weakening market confidence Celsius’s position in the market remains shaky.

The eclipse on the crypto market has given way to unseen events that shocked market participants. First, the collapse of Terra’s LUNA and now the Celsius Network conundrum has given way to considerable skepticism in the cryptocurrency market.

Celsius Network LLC – a cryptocurrency loan company, had over $8 billion lent out to clients and $12 billion in assets under management (AUM) as of May 2022. However, in a surprising announcement, the firm announced on June 12 that it would stop withdrawals from its platform, citing ‘extreme market conditions.’

The revelation of Celsius halting withdrawals exacerbated the bearish market conditions in mid-June, briefly sending bitcoin’s price below $20,000. With the Celsius saga unfolding, many questions have spurred about the project, management, and the events surrounding the network over the last couple of weeks.

What is Celsius?

The Celsius Network is a centralized platform offering yields on various cryptocurrencies and digital assets, including bitcoin, ether, and stablecoins. The lending protocol has positioned itself like a bank but seems to operate more like a hedge fund.

Crypto lending is pretty much like savings accounts offered by traditional banks but with cryptocurrencies instead of fiat currencies. Like in a bank, for crypto lending protocols too, an investor opens an account, deposits cryptocurrency, and earns interest on the deposits.

Investors can either make deposits in bitcoin, stablecoins, or even lesser-known, more volatile cryptocurrencies. Protocols generally pay interest in the same currency deposited, which leads to varying profits.

Like other lending protocols, Celsius promises certain yearly returns that are subject to change; however, the protocol’s publicly advertised interest rates range from ‘up to 17% APY.’

The lending protocol allows users to borrow funds and use their crypto as collateral. Apart from Celsius, other protocols have also resorted to CeFi or centralized finance – an alternative to decentralized finance (DeFi), where users still work with a centralized intermediary.

Celsius promises a specific rate for users to deposit their funds on the platform. Over the last couple of years, the protocol attracted massive interest, and the company did exceptionally well.

Notably, the firm expanded its latest funding round to a massive $750 million in November 2021, reaching a valuation just above $3.25 billion.

The Celsius Saga

As the larger market battled the bearish blues, Celsius did the unthinkable – the network flat-out halted withdrawals and transfers, locking their users out of their money.

Interestingly, many in the market have compared Celsius Network to the Lehman Brothers, looking at the protocol’s failure that exacerbated a market crisis.

Celsius is rumored to be insolvent following a freeze on withdrawals since mid-June. The firm was founded in 2017 by Alex Mashinsky and S. Daniel Leon. As mentioned earlier, the lending protocol lent over $8 billion to clients per the company’s data.

After the recent withdrawal freeze, Coinbase, BlockFi, and Crypto.com have also announced job cuts. The happenings across the crypto-verse have added to the bearish waves in the market. Reportedly, Celsius has hired banking giant Citigroup, law firm Akin Gump Strauss Hauer & Feld, and management consultants from Alvarez & Marsal to explore potential financing options.

On June 28, Celsius’ management looked to avoid bankruptcy, regardless of advisers and lawyers recommending filing for Chapter 11 bankruptcy. A liquidity crisis has plagued the protocol for weeks as numerous rumors have surfaced around the network, of late.

Notably, crypto Twitter has been left bewildered by the Celsius Network continuing to pay weekly rewards despite pausing withdrawals two weeks ago. Apart from the short-term implications of the recent Celsius conundrum the overall trust in the network has also been affected.

Furthermore, Celsius’s position in the market can severely affect the crypto-verse. Celsius is one of the largest lenders in the industry, and if they start liquidating the same could lead to negative market momentum alongside bearish social sentiment.

Some participants and analysts have already speculated that the most recent declines and the rangebound market momentum could partly be because of the company selling.

For now, the larger market’s bearish momentum has added to Celsius’s tragedy, and it remains to be seen where the project would go from here.

Dogecoin (DOGE) and Shiba Inu (SHIB) Price Prediction – June 28

Key Insights:

  • DOGE’s market value appreciated by 20% in the last seven days.
  • Long-term RSI for meme tokens DOGE and SHIB saw a positive turn.
  • Amid a larger bearish market, Dogecoin and Shiba’s short-term gains ignited some optimism in the market.

As a larger bearish spell engulfed the crypto market with top tokens oscillating in a rangebound momentum, meme tokens turned to the market’s rescue flashing short-term bullish signals.

Entering the third week of June, DOGE/USDT and SHIB/USDT pairs presented a high demand owing to gains in RSI. Both the tokens made price gains above their key support levels with a significant bullish engulfing candle on each of the tokens’ charts, initiating a relief rally.

For the top meme token, DOGE, a price push from bulls, helped the coin gain almost 20% over the week. On the other hand, the top Dogekiller – SHIB, noted close to 35% weekly gains but saw price action weakening at press time.

The recent recovery rally pushed DOGE’s price 50% higher as the coin reclaimed the immediate resistance of $0.07 and hit the next higher resistance at the $0.77 mark. While DOGE’s recovery was notable, SHIB charted higher gains of close to 60% over the last week.

However, on June 28, around press time, the two meme tokens saw weakening momentum on their short-term charts, which makes it crucial to assess whether DOGE and SHIB could continue their uptrend.

Dogecoin (DOGE) Price Analysis

Despite the recent gains, DOGE price failed to surpass the overhead resistance at the 0.078 mark. There was a significant pump in trade volumes for the top meme token. However, the long-work rejection candle highlighted that bears cautiously defended the higher resistance levels with vigor.

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DOGE 1-hour Price Chart | Source: FXEmpire

In the early trading hours of Monday, Dogecoin broke higher, surpassing its 50-Day Moving Average for the first time since late April. DOGE/USDT pair traded close to $0.08, making it the best performing cryptocurrency in the top 50 cryptos by market cap.

Many market experts believe that the top meme coin has seemingly broken above a downtrend in play since mid-May. However, the larger market’s bearishness pulled down the price of the tenth-ranked crypto asset by market cap.

At press time, DOGE traded at $0.07262, noting a 2.03% drop in price over the last 24 hours. Notably, on a one-hour chart, Dogecoin has lost almost 8% price from the high of $0.078.

The top meme coins RSI presented that sellers were starting to gain dominance as buying pressure slumped. In the short term, a recovery above the $0.075 mark would be essential to DOGE’s recovery. Lowering social anticipation for the coin can further affect DOGE prices.

FXEmpire analyst Mohadesa Najumi highlighted that while ‘Dogecoin may have surged 55% recently, technical analysis shows that short-term sentiment on DOGE is neutral, with 16 indicators displaying bullish signals compared to 16 bearish signals at the time of writing.’

In another FXEmpire article, analyst Joel Frank presented that for DOGE, a clean break above the 50DMA sets the stage for further upside towards the critical $0.10 level.

Shiba Inu (SHIB) Price Analysis

Shiba Inu‘s price was trading around $0.00001115 at press time, up 34.95% in the last week. However, weakening buying pressure had pushed the coin’s price down by 5.77% over the previous 24 hours.

On a one-hour chart, SHIB was testing the $0.00001110 support resistance mark, staying above which would be crucial for the coin. In the near term, the $0.0000108 support could act as a line of defense that bulls need to guard.

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SHIB 1-hour Price Chart | Source: FXEmpire

That said, in the short-term, a recovery above the upper resistance at the $0.0000114 mark could play in favor of the bulls helping the meme token gain further market momentum.

SHIB bears protected the local resistance level at $0.00001297, and a u-turn from that mark led to considerable market losses for the top Dogekiller over the last day.

Nonetheless, trade volume for the coin remains high. If bulls can manage a daily candle close above the $0.000012 mark, a breakout might happen within the coming days.

Top 5 Indicators Traders can Use to Spot the End of a Crypto Bear Market

Key Insights:

  • Bitcoin fell below its previous cycle’s all-time high price triggering larger market sell-offs this weekend.
  • Looking at metrics and indicators can help provide insight into when a bearish drawdown might end.
  • Bitcoin’s SOPR recently made a multi-year all-time low.

The days of quick profits of off top cryptocurrencies, meme coins, and altcoins have gone as the dreadful bear market sets. The bear market took full shape as the top cryptocurrency, bitcoin (BTC), fell below its previous cycle’s all-time high price triggering larger market sell-offs.

The bear market has sent shivers down the spines of newcomers as well as seasoned traders and investors. With the global crypto market cap still below the $1 trillion mark, the larger market is still wondering how the king coin and the crypto market will return from this epic fall.

At this point, one question that plagues the crypto market is ‘how and when the bear market will end.’

While it is next to impossible to predict when the bear market will end accurately, looking at previous cycles and price bottoms can help understand how supply-demand dynamics pan out towards the end of bearish phases. Thus, looking at metrics and indicators can help provide insight into when a bearish drawdown might end.

Here are five metrics and indicators traders and analysts use to assess the bear market bottom and gauge how the market might behave.

Assessing a Crypto Bear Market Bottom

One of the simplest ways to see whether a bear market is, in fact, coming to an end is to look at the larger market sentiment. The crypto fear and greed index provides an insight into the larger market mood.

Much like the rest of the financial markets, the crypto market behavior is very emotional. Investors tend to get greedy when the market rises, resulting in FOMO (Fear of missing out).

On the other hand, people often sell their coins in the irrational reaction of seeing red numbers or losses. The Fear and Greed Index works on two assumptions: extreme fear can be a sign that investors are too worried, and when investors are getting too greedy, the market is due for a correction.

The current sentiment of the Bitcoin market was largely bearish as the fear and greed index presented Extreme Fear, as seen below.

FXempire, bear market, Crypto, bitcoin
Source: Alternative me

The index is a meter from 0 to 100. Zero means ‘Extreme Fear,’ while 100 means’ Extreme Greed.’

Another good sign that a crypto winter or bearish period ends is when blockchain and web3-centric organizations begin to hire again, and new projects launch with notable funding announcements.

An uptick in hiring trends and investment announcements are indications that funds are beginning to flow back into the ecosystem and the bear market is in the past.

Bear Market Bottom Indicators

Apart from the general sentiment and mood, some technical indicators tell us about the market’s health in terms of demand, supply, development etc. Market analysts and traders have historically used technical and on-chain price indicators or metrics to point out market tops and bottoms.

Accurately pointing out the market bottom in a space as volatile as the crypto-verse is next to impossible; however, some metrics flash bullish recoveries and can be used to look at market trends reversing.

Bitcoin SOPR

The Spent Output Profit Ratio or SOPR is an indicator that provides insight into macro market sentiment, profitability, and losses taken over a particular time frame. It reflects the degree of realized profit for all coins moved on-chain.

SOPR is measured by considering only coins moved the timescale considered (daily, hourly etc), and taking the ratio between the fiat value at the time of UTXO creation, and the fiat value when the UTXO is spent.

Notably, SOPR values greater than 1 imply that the coins moved that day are, on average, selling at a profit. In contrast, values less than 1 indicate that the coins moved that day are, on average, trading at a loss.

SOPR trending higher implies profits are being realized with potential for previously illiquid supply being returned to liquid circulation. In contrast, the metric trending lower indicates losses are being realized and/or profitable coins are not being spent.

Bitcoin’s SOPR can be used on a longer time frame to point out market tops and bottoms. A recent Glassnode Tweet presented that Bitcoin Entity-Adjusted SOPR (7d MA) reached an all-time low (ATL) of 0.79772 on 21 June; the previous ATL of 0.79887 was observed on 18 March 2020.

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Bitcoin Entity-Adjusted SOPR (7d MA) | Source: Glassnode

While a-SOPR reaching a multi-year all-time low can indicate that the market bottom has arrived, it can’t be said for sure if the current short-term recovery is just a bull trap.

RSI and 200-week SMA

Historically, the 200-week simple moving average (SMA) has acted as a technical indicator that signals the end of a bearish period multiple times. In bitcoin’s cycles, when the price falls below the 200-week SMA and then climbs back above it, the same points towards a trend reversal for the top coin.

A noticeable price recovery above the realized price, which is the aggregate purchase price of all bitcoin, can also be used as a supporting indicator to point out market trend reversals.

Apart from that, the relative strength index or RSI is another technical indicator that can offer insight into when the lows of a bear market may be in. RSI helps assess the buying pressure vs the selling pressure. The indicator also presents the larger sentiment of the market and tells whether bulls or bears are in control.

In previous bear markets, BTC’s RSI dropped into oversold territory. It fell below a score of 16 around the time BTC established a low. Looking at longer time frames to spot RSI reversals can also be a reliable measure of market reversals.

Usually, a u-turn in weekly RSI can further confirm the end of a bear market.

Market Value to Realized Value (MVRV)

Market-value-to-realized-value is a ratio of an asset’s Market Capitalization versus its Realized Capitalization. By comparing these two metrics, MVRV can be used to determine when price is above or below “fair value” and assess market profitability.

Extreme deviations between market value and realized value can be used to identify market tops and bottoms as they reflect periods of extremes in investor unrealized profit and loss, respectively.

Low MVRV values and down-trends show that the market value of the coin supply is decreasing relative to the realized value (cost basis). Lower values indicate a smaller degree of unrealized profit in the system, which may signal undervaluation or poor demand dynamics.

A reversal in long-term MVRV can act as a strong sign of market recovery and help plot a market bottom.

Moving Average Multiplier

The two-year moving average multiplier tracks the 2-year moving average and a 5x multiplication of the 2-year moving average (MA) with bitcoin’s price. This metric has also been used to determine when the bear market is over.

Notably, every time the price of BTC fell below the 2-year MA, the market entered the bear market territory, on the other hand, when the price climbed back above the indicator an uptrend continues.

Furthermore, when the price climbed above the 2-year MA x5 line, the same signaled a full-on bull market and presented an opportunity to take profits. Analysts often use this metric to signal when it might be a good time for accumulation.

These metrics and indicators help analysts assess whether the bear market is coming to an end. However, no indicator or metric can accurately point out market bottoms, and it’s best to do your own research and stay safe in a bear market.

Top 5 Cryptocurrencies to Watch this Week: BTC, ETH, SOL, LTC, ETC

Key Insights:

  • The top cryptocurrency, bitcoin (BTC), was still below the crucial $20,000 support.
  • Volatile market conditions and BTC’s minor price upticks gave way to certain altcoin recoveries.
  • ETH, SOL, LTC, and ETC could be some altcoins to watch over the coming week closely.

While the global crypto market cap was still below the $1 trillion mark, there was some optimism in the market in the early trading hours of the Asian session on 20 June. The global crypto market cap stood at $899.00 billion, noting an 8.97% increase over the last day.

Bitcoin, the top cryptocurrency by market capitalization, traded at $20,379 noting a 9.81% rise in the 24-hour window. In tandem with BTC’s momentum, altcoins like ether (ETH), Solana (SOL), Litecoin (LTC), and Ethereum Classic (ETC) enjoyed decent gains in the short-term window.

Seemingly, top altcoins such as ETH, SOL, LTC, and ETC could be worth watching in the coming week.

Bitcoin (BTC)

On 18 June, bitcoin’s price fell below $20,000, which has acted as a historic long-term support. The $20,000 mark was also the all-time high price of the last cycle when BTC made a new all-time high at that price range in the year 2017.

Bitcoin’s price drop came alongside the larger market correction, which resulted in most cryptocurrencies trading deep into the negative territory. Bitcoin’s price fell to the lowest price level since December 2020.

At press time, BTC traded at $20,379, noting a 9.81% rise in the 24-hour window. However, over the last 24 hours, the asset tested lower $18,926 levels before rebounding marginally above.

Last week, the US stock market started to show a minor recovery as the three major US stock indexes finished higher, marking an end to their longest weekly losing streaks in decades. S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were closed higher, making investors optimistic.

From a price perspective, BTC’s current short-term trajectory favored bulls as the price established above the crucial $20,000 psychological support.

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BTC Price Action | Source: FXEmpire

BTC’s recent pullback below the $20,000 mark disproved the market theory about bitcoin’s price not falling below its previous cycle’s highs. The last cycle ATH theory held true during the 2018 drawdown but has now been disproven for the current cycle.

With the short-term relative strength index (RSI) noting a significant recovery, the same presented a rise in buyers. Higher buying pressure in the market could fuel BTC for gains in the near term.

However, looking at technicals, it could be said that the upside would be limited for BTC unless bulls take control and a price action like July 2021 takes place.

All in all, the top cryptocurrency’s price action would be crucial to watch in the coming week and could direct the larger market’s trajectory.

Ethereum (ETH)

The king altcoin, ether (ETH), was one of the top gainers in the top 20 coins by market cap at press time, noting close to 20% gains on the daily chart. In the bigger picture though, ETH’s price chart didn’t look pretty.

While ETH was still down 76.49% from its all-time high, the coin managed to push itself above the crucial $1000 mark over the last 24 hours. ETH’s price made a parabolic recovery above the $1000 psychological price barrier.

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ETH Price Action | Source: FXEmpire

As we advance, if bulls can push ETH’s price above the $1200 mark, a recovery could be confirmed from the lower lows. At press time, ETH’s price traded at $1,131.63 as the coin’s RSI presented a rise in buying pressure.

Solana (SOL)

In tandem with BTC’s price rise, altcoins, too, saw a decent price recovery on their short-term chart. Solana’s four-hour price chart presented the asset’s recovery above the $30 mark.

In the near term, if buyers are able to push SOL above the $35 mark and then above the $40 resistance, a recovery could be confirmed for the altcoin.

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SOL Price Action | Source: FXEmpire

That said, the market looked largely volatile, and a price push in either direction could be seen in the short-term depending on BTC’s price action.

Litecoin (LTC) and Ethereum Classic (ETC)

In a bear market, when shorter periods of bullish price action take place, generally, coins with a high correlation with bitcoin do well. Both LTC and ETC have been highly correlated with the top cryptocurrency.
Additionally, the two coins often see lower volatility swings in a largely volatile market.

Litecoin’s price tested the $55 resistance, trading above the level briefly. At press time, the coin traded at $54.83, noting a 23.16% rise on the daily and a 9.21% rise on the weekly chart.

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LTC Price Action | Source: FXEmpire

In the near term, if LTC bulls can push the coin above the $60 mark, the same could fuel further gains. On the contrary, a pullback to the $50 level could be expected if bears take control.

ETC’s price action could take some interesting turns if BTC bulls support bitcoin’s positive momentum in the coming week.

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ETC Price Action | Source: FXEmpire

In the short term, if buying pressure pushes ETC’s price above the $18.5 mark, further gains could be expected. Furthermore, a push to the $24 mark could reignite positive momentum for the coin.

While the downside for ETC looks limited, further downward momentum could bring the coin down to the $10 mark if another set of sell-offs follows.

GBTC Premium Hits all-time low as Bitcoin Price Lingers Around $20K

Key Insights:

  • Bitcoin’s price is down by more than 70% from its all-time high of $69,000.
  • The largest bitcoin investment vehicle – GBTC, also traded at its biggest ever discount to the spot market.
  • The recent price downturn has affected mining profits as well as miners’ sentiments.

2022 has been quite a rough year for the cryptocurrency market, with the top crypto assets oscillating over 50% lower than their all-time high prices. Bitcoin’s price plunged by more than 70% since its all-time highs and is currently trading at $20,623.

With the fall in BTC’s price, the largest bitcoin investment vehicle – the Grayscale Bitcoin Trust (GBTC), also traded at its biggest ever discount to the spot market.

GBTC at a Heavy Discount

On-chain analytics site Coinglass shows that GBTC shares are down 34% versus BTC/USD on major exchanges as of June 17. The numbers for GBTC show that not just smaller investors but institutions have also failed to avoid the BTC downswing.

As the already underperforming GBTC hits new lows, bigger investors’ market sentiment comes out as heavily bearish. Amid the current market collapse, economist Peter Schiff compared BTC to Gold, pointing out that in May 2019 Grayscale launched its ‘drop gold campaign,’ pumping bitcoin’s price and the price of GBTC up to $17.40 at that time.

On June 16, GBTC hit $12.60 – 79% below its high, at a 34% discount to NAV. Schiff further added that ‘over the same three years while GBTC is down, gold is up by over 30%.’

At press time, GBTC premium traded at 34.26% cheaper than the Bitcoin spot price, also known as net asset value, or NAV. The drastic price loss accompanied a similar dip on spot markets as BTC/USD tested the lower $20,000 support twice.

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Source: CoinGlass

GBTC is a financial vehicle that allows investors to invest in trusts that, in turn, hold large amounts of Bitcoin. While GBTC doesn’t mean BTC itself, as the price of bitcoin rises or falls, shares in these trusts tracking the value of the cryptocurrency are also affected.

Analyst Dylan LeClair commented on the discounted GBTC price, saying that ‘the lower the discount, the more GBTC siphons potential institutional demand away from the spot market.’

Many investors prefer investing in GBTC for several reasons, such as the fact that the Securities and Exchange Commission regulates investments in the asset.

Bitcoin Whales Activated

The largest cryptocurrency in the market has shed more than 70% of its value since hitting its all-time highs. With the total crypto market cap below the $1 trillion mark, it can only be imagined where the larger crypto market will be headed over the coming weeks.

Notably, the recent price downturn has severely affected mining profits as well as miners’ sentiments; however, one cohort is undeterred by the current market collapse – BTC whales.
According to data from the cryptocurrency analytics platform CryptoRank, mining Bitcoin is no longer profitable for miners.

CryptoRank data stated,

“Due to a significant drop in BTC price over the past months, mining has become less profitable. It might even be unprofitable for some bitcoin miners at the moment.”

As recessionary fears loom and organizations undergo operational problems and insolvencies, the larger market continues to move southward.

Nonetheless, data reveals that crypto whales have taken advantage of the chance to acquire bitcoin at a discounted price. Notably, when the top crypto asset came close to plunging below the critical support level of $20,000, BTC whales saw increased activity.

Crypto analyst by the name of Crypto Rover tweeted on June 15, ‘Bitcoin whales sell into strength and buy into weakness.’

Bitcoin Mining Profitability Dips Majorly Amid BTC Price Pullback

Key Insights:

  • BTC tumbled to a new 18-month low, dragging altcoins with it.
  • Bitcoin’s fall below the crucial $20,000 support could assist further downward price momentum.
  • Bitcoin mining profitability has dropped by over 75% from the market top.

A larger bearish sentiment took over the traditional finance market as well as the cryptocurrency space. Bitcoin’s price had been on a downtrend since June 9.

Still, in European hours Wednesday, the world’s largest cryptocurrency fell as much as 7.8% to $20,289, its lowest since December 2020.

BTC Below Crucial Psychological Support

On June 15, BTC tumbled to a new 18-month low, dragging altcoins with it and deepening a market meltdown sparked by crypto lender Celsius this week, freezing customer withdrawals.

The top cryptocurrency has lost over 31% in the last week and more than half its value this year. BTC’s price has slumped by over 70% from its all-time high price of nearly $69,000 made in November 2021.

Bitcoin’s fall below the crucial $20,000 support could assist further downward price momentum. A fall in BTC’s price below the crucial psychological support levels of $25,000 and $22,500 has spread distress across crypto and traditional markets.

FXempire, Bitcoin, Crypto, BTC
Bitcoin (BTC) Daily Price Chart | Source: FXEmpire

Shockingly, the price of the largest cryptocurrency by market value has been in a downtrend for nine straight days – a record losing streak in pricing data going back to the early 2010s.

After a minor recovery wave was seen in the early hours of Wednesday as bitcoin price saw a fresh round of selling from $22,000. The price declined and broke the $20,500 support, leading to further sell-offs in the market amid extreme fear.

The top crypto asset traded close to the $20,000 level and settled below the 21 simple moving average. For bitcoin bulls, a push in price aimed at a recovery above the $21,000 level would be critical.

Notably, BTC price faced a significant resistance near the $21,600 level and the 21 simple moving average, as highlighted in a recent FXEmpire article.

The next major resistance for bitcoin is at $22,800; however, looking at the market a revisit of the under $20,000 zone could be expected in the near term.

Bitcoin Mining Profitability Suffers

Data from Glassnode highlights that bitcoin mining profitability has dropped by over 75% from the market top and is currently at its lowest since October 2020.

Bitcoin Miners to Exchange flow rose to a seven-month high of 9,476. This meant that miners sent an abnormally high volume of BTC to crypto exchanges amid the recent price downturn.

The rise in exchange flows presented that miners are currently selling their BTC, expecting the asset’s price to go down further. Miners liquidating could also be due to the net realized losses of the BTC network.

The miner Netflow to exchanges also turned positive. When the metric turns positive, it signifies that more coins are being sent to exchanges than are to private or cold wallets. Miner Netflow turning positive would indicate that miners are bearish on the price and are under pressure to sell.

Notably, bitcoin supply in loss (7d MA) reached a two-year high of 8,501,301.765 BTC, indicative of the network and holders in pain.

FXempire, BTC, Crypto, Bitcoin

While volatility and bearish spells are a constant in the market, BTC price has never fallen below the all-time high of the previous cycle. Over the last decade, BTC’s price has seen numerous bull cycles followed by a significant decline from the all-time highs.

However, with BTC’s current price trading very close to its 2017 all-time high price of $19,783, any further sell-off from this point could push the cryptocurrency to the 2017 territory.

Data from Santiment presented that traders were reacting to the major price drops this week, and the 4.5-year high in bitcoin’s daily token circulation indicates how polarized the market was.

Around 497k unique BTC were moved to start the week, the highest amount since December 6, 2017.

‘Deadly Red Candle’ Engulfs Bitcoin: Here’s Why Price Fall Could Continue

Key Insights:

  • The bitcoin price closed with its 10th red candle in eleven weeks.
  • Bitcoin’s RSI ‘has never been more oversold on the weekly time frame than now.’
  • Despite the many macro valuation metrics continuing to flag oversold conditions, bitcoin price remained correlated with traditional markets. 

Bitcoin and digital assets have experienced yet another chaotic week of price losses. BTC’s price, after losing the open of $31,693 and trading down to a new multi-year low of close to $20,800.

In the larger financial landscape, macro headwinds remain a large-scale driver, with the latest US CPI print of 8.6% is higher than expected and another 2year-10year US Treasury Bond yield curve inversion occurring in the early hours on Monday.

BTC Highly Oversold

As bitcoin price closed with its 10th red candle in 11 weeks, the top cryptocurrency’s price hit as low as $20,816 on Bitstamp. The $20,816 mark is the lowest BTC’s price has gone since the week of December 2020.

Market analysts like Michaël van de Poppe said the recent BTC price candle was a ‘deadly red candle.’

The S&P 500 was down on the daily chart by nearly 3.9%. In comparison, the Nasdaq Composite Index lost 4.7% ahead of critical comments from the US Federal Reserve on its anti-inflation policy.

Notably, a larger market sell-off that triggered before the weekend paced after Monday’s Wall Street opening bell as BTC and other digital assets fell in tandem with United States equities.

Even though the larger financial landscape looked bearish, the worst effect was seen on top crypto assets. At the time of writing, while bitcoin’s price had stabilized at the $22,449 mark, it was still down by 24.95% (close to 25%) on the weekly chart.

Renowned crypto trader and analyst Crypto Rover pointed out on Twitter that bitcoin ‘has never been more oversold on the weekly time frame than now.’

FXempire, BTC, Crypto, Bitcoin
Source: Crypto Rover Twitter

That said, looking at bitcoin’s daily RSI, it was evident that the metric saw a freefall from June 7 to June 14, trading in an extremely oversold zone. A major fall in RSI indicates selling pressure taking over the market.

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BTC Daily Price | Source: FXEmpire

Trading firm QCP Capital noted that the BTCUSD pair was ‘uncomfortably close’ to falling below the $20,000 mark, representing the all-time high from its previous halving cycle, which had never happened before.

Is the BTC Bottom In?

Glassnode’s weekly report highlighted on Monday that throughout last week, bitcoin network utility continued to languish, with macro metrics like the RVT entering the uncharted bearish territory.

Even though, until Monday, there was a continued accumulation across Shrimps (< 1BTC) and Whales (> 10K BTC) alike, price support was far from established. Additionally, despite the many macro valuation metrics continuing to flag oversold conditions, bitcoin price remained correlated with traditional markets, as BTC price and market cap continued to take a beating.

Moreover, the Glassnode report said that the market was ‘entering a phase-aligned with the deepest and darkest phases of previous bears.’ Notably, the market, on average, is barely above its cost basis, and even long-term holders were now realizing losses.

FXempire, BTC, Crypto, btc price, bitcoin price
BTC Liveliness | Source: Glassnode

Looking at the liveliness metric for BTC, it could be noted that the indicator has been in a structural downtrend since August 21. Liveliness helps understand the market preference for HODLing or distributional behavior by defining the balance between aggregate Coin Day Destruction and Coin Day Creation.

Looking at BTC, it could be said that it was firmly within a regime of aggregate Coin Day Creation as HODLing dominates. However, with only the HODLer class remaining, their demand-side remains too light to contain the current action sell-side.

There Could Be More Price Downside

Despite BTC’s price stabilizing near the $22,000 price range, many in the market anticipated further price fall for the top asset. CryptoQuant analysts highlighted that the ‘price reduction is not over yet’ looking at the SOPR metric for BTC.

The SOPR (Spent Output Profit Ratio) indicator provides insight into macro market sentiment, profitability, and losses taken over a particular time frame. It reflects the degree of realized profit for all coins moved on-chain.

SOPR value less than 1 implies that the coins moved that day are, on average, selling at a loss or that the price sold is less than the price paid. Notably, a comparison of SOPR metrics with previous bottoms shows that the values are more than previous bottoms. This could be a signal that prices may fall further.

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BTC SOPR | Source: CryptoQuant