Crypto Market Daily Highlights – June 14 – BTC and ETH See Red

Key Insights:

  • Crypto market conditions calmed on Tuesday, with the broader market ending extended losing streaks.
  • Ethereum (ETH) bucked the trend, falling for an eighth consecutive day, with bitcoin (BTC) also seeing red.
  • The choppy session saw the total crypto market cap fall by $69 billion to a new current-year low of $858.7bn before late support kicked in.

It was a mixed session for the crypto market on Tuesday. While the broader crypto market ended an extended losing streak, the bitcoin (BTC) fell for an eighth consecutive day.

The eighth day in the red saw bitcoin fall to a new current-year low of $20,838 before a partial recovery to $22,000. Bitcoin last stood at sub-$21,000 in December 2020.

Helium (HNT) was a front runner, while Monero (XMR) and Tron (TRX) saw heavy losses.

Dip buyers delivered much-needed support ahead of the Fed’s monetary policy decision on Wednesday, which has weighed on the crypto market.

Crypto Market Cap Slides to sub-$900 Billion

Following Monday’s $130.6 billion wipeout, the total crypto market cap fell by just $3.6 billion on Tuesday.

Significantly, however, the market cap fell to a new current-year low of $858.6 billion before returning to $900 billion. Tuesday’s decline marked the eighth consecutive daily fall.

Crypto market cap falls again.
Total Market Cap Daily Chart 150622

For June alone, the total crypto market cap is currently down $379 billion, following a $380 billion tumble in May and a $375 billion slump in April.

While the crypto market found support on Tuesday, downside risks remain as the market looks ahead to the Fed monetary policy decision on Wednesday.

The markets have priced in a 50 basis point rate hike. A hike in line with expectations would leave investors to focus on the Fed’s inflation, GDP, and interest rate projections.

Investor fear of a more aggressive rate path trajectory has hit riskier assets. An upward revision to the March projections will likely further test the appetite for riskier assets.

Other market considerations include plans to roll out more stringent regulatory measures and the stability of stablecoins.

On Tuesday, TRX came under selling pressure as investors reacted to algorithmic stablecoin USDD losing its dollar peg. TRX slumped by 12.9% on Tuesday, following a 16.1% slide on Monday.

From the top ten cryptos, ADA (+3.88%), SOL (+3.46%), and XRP (+3.41%) led the way.

BNB (+0.09%) and DOGE (+2.69%) also found support.

BTC slid by a further 1.58% to lead the way down, however, with ETH ending the day with a 0.02% loss to buck the broader market trend.

From the CoinMarketCap top 100, Monero (XMR) joined TRX in the deep red, with a loss of 10.83%.

Total Crypto Liquidations Eased but Remained Elevated

Following Tuesday’s spike, total liquidations eased going into the Wednesday session.

According to Coinglass, 24-hour liquidations stood at $578 million, down from $1,070 million levels on the day prior. While down from Tuesday levels, however, 24-hour liquidation levels remained elevated.

Crypto liquidations ease.
Total Crypto Liquidations 150622

One-hour liquidations pointed to a steadying in market cap conditions, with one-hour liquidations at $7.7 million.

Crypto Daily News Highlights

  • Bank of England Governor Andrew Bailey took another swipe at the crypto market.
  • Crypto investors prep for the Fed monetary policy decision and projections.
  • Tron (TRX) took a hit in response to algorithmic stablecoin USDD losing its dollar peg.
  • Ripple general counsel Stuart Alderoty took aim at the SEC over a muddied regulatory environment.
  • BlockFi was fined $943,000 for failing to register securities in the State of Iowa.
  • While the crypto winter takes its toll on crypto platforms, Ripple Labs, Binance, and Tron announced upbeat plans.
  • CEO and co-founder of Terraform Labs Do Kwon denied cashing out $2.7 billion.

Bitcoin and ETH Resume Downtrend, AVAX At Risk of Sharp Drop

Key Insights:

  • Bitcoin is gaining pace below the $40,000 level.
  • Ether (ETH) traded below the key $3,000 support zone.
  • AVAX is signaling a major downside break below $75.

Bitcoin

After facing a strong selling interest, bitcoin price started a fresh decline from the $43,000 zone. There was a clear move below the $40,950 support zone.

There was a break below a key bullish trend line with support near $41,900 on the hourly chart. It even traded below the $40,000 support and settled below the 21 simple moving average (H1). The current price action is bearish and seems like the bears are aiming a test of $39,000.

Bitcoin

The next major support is near the $38,550. Any more losses could send the price towards the $38,000 level in the near term.

Ethereum (ETH)

ETH also followed a similar pattern and started a fresh decline from the $3,165 resistance zone. There was a move below the $3,100 support zone.

Ether declined below a major bullish trend line with support near $3,020 on the hourly chart. It settled below the $3,000 level and the 21 simple moving average (H1). The next major support is near the $2,930 level.

Ethereum (ETH)

A downside break below the $2,930 support could push the price lower towards $2,840. On the upside, the previous support at $3,035 and the 21 simple moving average (H1) might act as a strong resistance.

Avalanche (AVAX)

AVAX attempted a major upside break above the $100 resistance. However, the bulls failed to gain strength above the $100 level.

A high was formed near $104 and the price started a major decline. There was a downside break below the $88 support level and the 21-day simple moving average. The price declined below the 50% Fib retracement level of the upward move from the $65 swing low to $104 high.

Avalanche (AVAX)

AVAX is now attempting a close below a crucial bullish trend line with support near $75 on the daily chart. If the bears succeed, the price could nosedive towards the $65 support. Any more losses may perhaps call for a test of the main $55 support zone in the coming days.

ADA, BNB, and DOT price

Cardano (ADA) is down 5% and traded below the $0.90 support level. The key support is near the $0.865 level, below which it could test $0.85.

Binance Coin (BNB) is slowly moving lower towards the $402 and $400 support levels. If there is a downside break below $400, the price might slide towards the $382 level in the near term.

Polkadot (DOT) is down over 5% and there was a move below the $19.00 level. It seems like the price might continue to move down towards the $18.00 support level.

A few trending coins are GMT, AMP, and LEO. Out of these, AMP is showing positive signs above the $0.0234 level.

Grayscale Investments Includes 25 New Cryptos Under Its Radar

Grayscale Investments, which manages cryptocurrency investment funds and a subsidiary of the Digital Currency Group, has added 25 new digital assets to its “under consideration” list.

The crypto investment giant said Monday that the addition is a part of the “exploration” of the crypto sector. These “assets under consideration” include tokens for a number of DeFi, metaverse, and NFT projects.

Some of the digital assets include Algorand (ALGO) and Convex (CVX) for DeFi projects, The Sandbox (SAND), Axie Infinity (AXS), and Enjin (ENJ) for metaverse protocols.

Some of these assets would either join the range of single-asset products like Grayscale Bitcoin Trust or the Grayscale Ethereum Trust, or the multi-asset product Grayscale Digital Large Cap Fund.

Grayscale views the addition of new digital assets as its “responsibility to introduce investors to the diversity in this space.”

“Assets under consideration lists some digital assets that are not currently included in a Grayscale investment product, but that has come to our attention as part of our exploration of this sector,” the company announcement noted.

Earlier this month, Grayscale rebalanced its DeFi fund quarterly, adding the Flexa’s amp (AMP) token and excluding Universal Market Access (UMA) and Bancor (BNT).

Assets Currently Active

Grayscale already lists an array of 23 cryptocurrencies under its “Grayscale’s Product Family.” This includes Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Solana, Cardano, among other digital assets.

Despite a more complicated market, Grayscale’s desire – to diversify its offer and remain a leader in the smart money segment – remains unchanged.

The asset manager has clearly indicated that the new addition of crypto assets are only hypotheses under study and that Grayscale will not integrate every asset under consideration into its product catalog.

“Grayscale may explore additional assets other than those included in the Assets Under Consideration table for inclusion in Grayscale Products. Similarly, assets could be included in the Grayscale Product family without first being listed on this table,” the firm added.

Grayscale Tiptoes Into Crypto Space

Grayscale Investments announced last week, its partnership with Bloomberg to launch a new crypto-based index dubbed – Bloomberg Grayscale Future of Finance Index (BGFOF).

The index aims to track 22 companies associated with several crypto-linked equities as well as other financial institutions in the fintech space.

Grayscale Investments applied to the Securities and Exchange Commission (SEC) in October, asking to convert GBTC into an ETF, but regulators have delayed a decision on a spot bitcoin exchange-traded fund (ETF) proposal from Grayscale.

This followed a written letter from Grayscale to the SEC, saying that the regulator is “breaking the law”. In the letter, Grayscale lawyers argued that the SEC’s preference for BTC futures ETFs over a Bitcoin spot ETF seems to be “arbitrary and capricious.”

AMP Shows Signs Of Life Again, Rallies Above $0.0550

AMP Managed To Get Out Of Recent Consolidation

AMP has recently gained strong upside momentum and is up by roughly 13% in the last 24 hours.

AMP is a digital collateral token used by Flexa network, which provides a digital payments platform. AMP is used as collateral to guarantee payments and serves as a kind of insurance for Flexa transactions.

Just like many coins, AMP made several attempts to gain sustainable upside momentum in November, but found itself under pressure and pulled back. Today, AMP is moving higher amid general crypto market strength, which was triggered by Bitcoin‘s recent move above the important $50,000 level.

AMP Settled Above 20 EMA And 50 EMA

amp december 27 2021

AMP gained strong upside momentum after it managed to settle above the 20 EMA at $0.0510 and the 50 EMA at $0.0525. Currently, AMP is trying to settle above the resistance level at $0.0565. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If AMP settles above $0.0565, it will move towards the next resistance level which is located at $0.0590. A move above this level will push AMP towards the resistance at $0.0610. In case AMP gets above $0.0610, it will move towards the resistance at $0.0625.

On the support side, a move below $0.0565 will push AMP towards the support level at $0.0550. In case AMP declines below the support at $0.0550, it will head towards the next support level at the 50 EMA at $0.0525. A move below the 50 EMA will open the way to the test of the 20 EMA at $0.0510.

amp h1 december 27 2021

Taking a look at H1 chart, we can see that RSI is in the extremely overbought territory, so the risk of a short-term pullback is increasing. Most likely, AMP will need to go through a consolidation phase to push the near-term RSI back into the moderate territory, which will provide it with an opportunity to continue its upside move.

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