21Shares Enters the US with new Crypto Product Launches

Key Insights:

  • 21Shares entered the US market this week, with the launch of two cryptocurrency exchange-traded products (ETPs).
  • Last week, the firm launched the first Bitcoin (BTC) and Ethereum (ETH) ETFs in Australia.
  • 21Shares built the first crypto ETP on the Six Swiss Exchange in 2018.

21Shares has enjoyed a strong European presence in recent years as the acceptance and adoption of digital assets gather momentum. ETP and ETF products have drawn plenty of investor interest.

In 2018, 21Shares rolled out the first crypto exchange-traded product on the Six Swiss Exchange.

Since then, 21Shares has evolved and currently offers 35 exchange-traded products available in CHF, EUR, GBP, and USD.

33 crypto exchange products are on offer to European investors, including The Sandbox ETP, Decentraland ETP, Crypto Basket Index ETP, and DeFi 10 Infrastructure ETP.

Among the 33 ETPs is also the Terra ETP, down 92% over the past 24-hours.

Despite the market angst from the TerraUSD (UST) de-pegging and the collapse of Terra LUNA, 21Shares continues to expand its product suite.

21Shares Launches Two US Crypto Index Funds Amidst Choppy Conditions

On Wednesday, 21Shares announced its entry into the US with the launch of two Crypto Index Funds.

The first fund offerings in the US will give accredited investors easy access to crypto. Accredited investors can invest into the Crypto Basket 10 Index Fund and the Crypto Mid-Cap Index Fund.

The Crypto Basket 10 Index Fund provides accredited investors with,

“An easy and efficient way to gain diversified exposure to bitcoin and other leading cryptocurrencies in a traditional private placement vehicle, which allows subscriptions and redemptions weekly and monthly, respectively.

The Fund seeks to track an index comprised of the top 10 largest cryptocurrencies based on market capitalization and available on US exchanges.”

At the time of writing, underlying assets included Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Polkadot (DOT), Avalanche (AVAX), Polygon (MATIC), Litecoin (LTC), Bitcoin Cash (BCH), and Cosmos (ATOM).

The Crypto Mid-Cap Index Fund,

“seeks to track an index comprised of the mid-cap portion of the cryptocurrency market based on market capitalization.”

At the time of writing, the underlying assets included Cardano (ADA), Solana (SOL), Polkadot (DOT), Avalanche (AVAX), Polygon (MATIC), Litecoin (LTC), Bitcoin Cash (BCH), and Cosmos (ATOM).

Both of the Funds have an expense ratio of 2.5%.

The latest product launch offering follows last week’s launch of two crypto exchange-traded funds in Australia and heightened volatility across the crypto market.

The Bearish Crypto Market Gives 21Shares and Investors an Entry Point

21Shares launched its Australian and US crypto products at a difficult time for the crypto market.

For May, bitcoin has tumbled 23.9% and by 38% year-to-date. From May 9 to May 18, bitcoin was down 15.8%, reflecting the impact of the TerraUSD (UST) de-peg and the Terra LUNA collapse.

21Shares CEO and co-founder Hany Rashwan said in an interview,

“We’ve been working on products in the US since we started, so we couldn’t be more excited to finally bring them.”

On the US debut, Hany has also said,

“Bear markets are wonderful times to consolidate, to build and to innovate, and we see this as a long-term investment.”

 

At the time of writing, bitcoin was up 1.04% to $28,965. A move through to $29,500 would support a breakout day ahead.

BTC finds support after early pullback.
BTCUSD 190522 Daily Chart

Weekend Market Wrap: Top Updates From the Cryptocurrency Market

Key Insights:

  • With BTC’s price above the $30,000 mark, market confidence seemed to return.
  • Most of the top altcoins were trading in the green on a renewed market momentum.
  • The recent short-term gains seem to be temporary as the market could see further downside.

Most cryptocurrencies traded higher as Sunday approached with a wind of fresh air for crypto investors. While it wasn’t a full-blown recovery, markets headed towards gains, as bearish sentiment waned.

Over the last six months, the cryptocurrency market reached as high as $3 trillion and dropped to as low as $1.2 trillion. In the last half a year, the cryptocurrency market cap has lost $1.9 trillion; these losses are bigger than those witnessed during the 2007’s subprime mortgage market crisis.

The high losses and higher trading volumes have propelled fears of crypto market risk spilling over across traditional markets hurting stocks and bonds. The same also indicates the increased correlation in the high-risk and traditional finance markets.

A return of short-term buyers, as the cryptocurrency market cap inches close to the $1.5 trillion mark, shows optimism in the market. However, the return of traders isn’t indicative of larger market recovery as technicals present limited upside in the short term.

Nonetheless, with the global crypto market cap returning to the $1.30 trillion mark at press time, noting a 4.73% increase over the last day, the same pointed towards a short-term recovery.

So, let us take a quick look at how the market reacted over the last week and where it could go, moving forward.

Bitcoin staging a recovery?

The bitcoin (BTC) price dropped to the lows last seen in late 2020, amid the COVID-19 crisis. Recently, after a storm of Federal Reserve interest rate hikes, the scaling back of its massive $9 trillion balance sheet, and a huge $18 billion stablecoin meltdown, the same brought down the larger crypto market cap and the top crypto asset.

Bitcoin’s price fell to as low as $25,800, but pressure from bulls ensured a short-term recovery back to the sub-$29,000 zone. At the time of writing, the top cryptocurrency, traded at $30,284, noting a 4.11% price rise, over the last day.

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

While the BTC gains instilled some confidence in the market participants, analysts believed that market gains wouldn’t sustain for long with volatility still high. Data analytics site, Glassnode, tweeted that Bitcoin dropped below $30,000, as inflation fears and the Fed’s readiness for “short-term pain” rattled markets.

Notably, BTC was down by 58% from its all-time high price, while SPX was down by 18%, NDX was down by 30%, and US bonds have fallen by 15% from their ATH.

Top market movers

Despite the larger bearish blues, some altcoins took advantage of BTC’s short-term gains as their prices took a bullish turn. At the time of writing, with BTC back above the psychological $30,000 mark, most of the top altcoins like ETH, BNB, XRP, ADA, SOL, and AVAX were trading in the green on their daily charts.

Ethereum traded at $2,079.78, noting 5.61% daily gains, while BNB was up by almost 9%, in the last 24-hours. Fantom’s price performance has also been decent in the last week. FTM traded at $0.3654, noting 19.87% gains, over the last day.

Privacy tokens like ZEC and XMR were up by 21.32% and 17% in the last 24-hours. Of late, privacy tokens have often charted bullish price trajectories when the larger crypto market is down.

That said, DeFi token MKR was one of the top gainers of the last week. At the time of writing, MKR traded at $1,575.27, noting 10.28% daily and 30.90% weekly gains. MKR had reversed the losses made in the first week of May.

FXempire, MKR, Crypto, maker
MKR Price Action | Source: FXEmpire

Top news from the crypto verse

A positive development in the crypto space came from Nigeria, where the nation’s Securities and Exchange Commission has released new rules to guide the issuance, custody, and exchange of digital assets and classify them as securities.

In other news, Chile was still considering whether to move forward with a central bank digital currency (CBDC), despite the earlier disclosed plans to have a proposal ready by early this year.

That said, the Terra ecosystem fall still stood as one of the top stories, in the last week. Earlier today, an FXEmpire article highlighted how Binance’s Changpeng “CZ” Zhao cleared the exchange’s name as rumors about Binance investing in Terra surfaced on crypto Twitter. CZ also questioned the idea of hard forking the Terra blockchain to revive the LUNA and UST ecosystems.

Crypto Weekly Review May 15 – TerraUSD Sinks LUNA

Key Insights:

  • It is a week for the crypto market to forget, with TerraUSD (UST) sinking Terra LUNA and the broader market.
  • The UST de-pegging from the dollar led LUNA out of the top ten to #206 on CoinMarketCap.
  • LUNA’s meltdown wiped out $700 billion from the market, causing regulatory ire.

Stablecoins and Terraform Labs became the center of a crypto market storm in the week. TerraUSD (UST) saw the dollar peg algorithm fail epically, leaving TerraUSD at a week low of $0.0437 before partially recovering.

TerraUSD depegs to leave bitcoin and the broader market in the deep red.
UST 1505 Daily Chart

The UST meltdown had far-reaching implications. Terra LUNA imploded, tumbling to close to zero and out of the crypto top 200 by market cap.

The TerraUSD depeg left Terra LUNA at close to zero.
LUNA 1505 Daily Chart

After the UST catastrophe on Monday, Tether (USDT) added to the market angst on Thursday, with a fall from parity. USDT fell to a week low of $0.9511. Fears of another stablecoin collapse sent the markets into another tailspin before a recovery to $0.99 levels restored market order.

Tether tested market nerves after UST meltdown.
USDT 1505 Daily Chart

The events of the week saw the correlation between the bitcoin (BTC) and the NASDAQ 100 weaken for all the wrong reasons.

Bitcoin correlation with the NASDAQ weakens amidst market turmoil
BTCNASDAQ correlation – Daily Chart 1505

Bitcoin (BTC) Shows Resilience Amidst Market Bedlam

A chaotic week saw bitcoin slide to a week low of $25,836 before finding support to bounce back to $30,000 levels.

News of Bitcoin Whales jumping ship, however, raises concerns over the near-term outlook for BTC and the broader market.

On Friday, FX Empire reported the news of Bitcoin whales jumping ship, with a slide across the US equity markets adding pressure on whales to reduce risk and cash out to meet possible margin calls.

Notably, the current bearish trend started back in November, with BTC sliding from an ATH of $68,979 to this week’s current week low of $25,836.

Market angst over Fed monetary policy and the economic outlook had hit the crypto market head of this week’s capitulation.

Near-term, a move through the 50-day EMA ($31,460) and the 100-day EMA ($33,857) would restore some confidence.

A renewed threat of a regulatory overhaul of the crypto market could test investor appetite, however.

Terra Lab Returns the Risk of a Crypto Market Regulatory Overhaul

In response to the UST stablecoin and the demise of LUNA, lawmakers stepped forward, calling for action.

On Wednesday, the UST and LUNA collapse drew the attention of US Treasury Secretary Janet Yellen. Treasury Secretary Yellen highlighted the risks of stablecoins to financial stability and the need for a framework.

Yellen followed Wednesday’s comments on Capitol Hill with further calls for crypto regulations while noting that dollar-pegged stablecoins have yet to reach a scale “where they’re financial stability concerns.”

The ex-Fed Chair was not alone, with SEC Chair Gary Gensler taking the opportunity to target digital assets. Gensler staked claim on digital assets, saying that,

“Most crypto tokens involve a group of entrepreneurs raising money from the public in anticipation of profits – the hallmark of an investment contract or a security under our jurisdiction. Most crypto tokens are investment contracts under the Supreme Court’s Howey Test.”

Bitcoin Fear & Greed Index Sees Lowest Level Since 2020

In the week ending May 15, BTC looks set to finish with a 14% loss, following on from last week’s 11.5% decline. BTC is on target for a seventh consecutive weekly loss, its longest losing streak since 2018. In May 2018, BTC saw red for six weeks out of seven.

Bitcoin set for a seventh consecutive week in the red.
BTCUSD 7-day chart 1505

The Fear & Greed Index continued to reflect investor sentiment, with the Index falling from 18/100 to a Saturday week low of 9/100. It was the lowest level since March 14, 2020, when the Index stood at 8/100.

A fall deeper into the “Extreme Fear” zone suggests more trouble ahead.

On Sunday, the Index climbed to 10/100, though this may provide little comfort to investors looking for an entry price.

The index sits deep in the extreme fear zone.
Fear & Greed Index May 15.

Things were no better for the rest of the crypto top ten.

The Broader Market Tracks Bitcoin into the Red

In the week ending May 15, Terra (LUNA) is heading for a 99% slump to $0.00032 levels.

At the time of writing, ADA (-29.9%), AVAX (-37.6%), SOL (-33.6%), and XRP (-26.1%) are heading for heavy losses.

BNB (-18.4%) and ETH (-20.2%) look set for relatively modest losses, however.

The total crypto market cap slumped from a start of the week $1,554 billion to a week low of $1,082 billion before partially recovering to $1,262 billion.

While TerraUSD and Terra LUNA grabbed the crypto headlines, there were other news worth events.

News Highlights of the Week

  • Nomura Bank announced its first bitcoin derivatives offering.
  • Aussie ETFs went live amidst crypto market turmoil.
  • Germany issues crypto tax guide.
  • NFT creator Dapper Labs raised $725 million for Web3 developer growth.
  • Bank of Israel found public support for a digital Shekel.
  • Binance was among exchanges to delist TerraUSD and Terra LUNA.
  • MicroStrategy stock plunged amidst crypto market sell-off.

Best Performing Altcoins of Last Week: BNB, TRX, MANA, MKR

Key Insights:

  • Bitcoin’s price faced strong resistance at the $31,000, while altcoins made attempts to recover. 
  • BTC’s recovery above the $27,000 mark pushed certain altcoins towards a short-term recovery.
  • BNB, TRX, MANA, and MKR were among the coins that got a decent upswing.

Bitcoin’s price attempted recovery above the $30,000 resistance level, but after facing rejection ahead of the $31,000 mark, its price oscillated close to $28,983 at the time of writing. BTC’s price jumped by almost 7% in a day, cutting its weekly losses to less than 18%, in tandem altcoins saw a short-term price push.

The world’s largest cryptocurrency by market cap was still down by over 50% from its all-time high made in November 2021 at around $69,000. After BTC’s recent short-term uptrend, most of the major altcoins faced the uphill task of recovering above their key support/resistance levels.

Altcoins short-term price surge

Certain altcoins that performed well over the last week in tandem with BTC’s recovery above the $27,000 mark were binance coin (BNB), Tron (TRX), Decentraland (MANA), and Maker (MKR).

In addition to that, two ethereum (ETH)-based altcoins called Chain’s XCN and FLEX Coin’s FLEX token charted notable weekly gains despite the widespread crypto meltdown.

The native token of the blockchain technology company chain, XCN, rose by more than 30% in price over the last seven days from a low of $0.071 to a high of $0.091.

On the other hand, Hong Kong-based futures exchange platform’s native token FLEX jumped by over 33% in the last week from a low of $3.72 to a high of $4.95.

Furthermore, many altcoins like DOT, AVAX, SHIB, MATIC, FTT, FTM, and APE were briefly in the green zone. Apecoin’s APE token rallied by 46%, breaking above the $9.00 level, while FTM, MANA, and GALA saw close to 50% gains over the last week.

BNB, TRX, MANA, and MKR see short-term price gains

Binance Coin’s BNB saw a bounce from the $200 support zone, rising to as high as $300 on May 13. However, the fifth-ranked coin by mark cap faced considerable resistance at the $315 mark and after making a high of $313 on May 13, it made its way back to the $250 level.

FXempire, BNB, Crypto
BNB Price Action | Source: FXEmpire

If bulls fail to ride the sell-side pressure, the price might correct lower, but dips could be limited below the $250 level. At the time of writing, BTC’s price pullback to the $28,900 mark brought BNB’s price down to the $279.36 level.

BNB’s price was down by 9.35% in the last 24-hours and almost 25.62% over the previous week.

Apart from BNB, Tron’s TRX token maintained its price above the key $0.067 mark despite the market-wide sell-off. TRX’s price made it close to the $0.084 mark but faced resistance at the higher level, which led to a pullback towards the $0.067 mark.

FXempire, TRX, Crypto
TRX Price Action | Source: FXEmpire

While TRX’s price maintained its rangebound movement between the $0.067 and $0.084 mark, its price didn’t fall below the key support zone at the $0.065 mark which was noteworthy.

Defi token MKR was another coin that performed well amid high sell pressure in the larger market. On the other hand, Decentraland’s MANA gained up to 50% as the market saw a short-term recovery.

Maker Protocol’s MKR token recovered from the last week’s losses as the price pushed above the $1500 mark. At press time, MKR traded at $1,456.29, noting 1.71% daily and 9.55% weekly gains.

On a weekly chart, MKR’s price made a higher high for the last four days.

FXempire, MKR, Crypto
MKR Price Action | Source: FXEmpire

At the time of writing, data from CoinMarketCap highlighted that MANA was the top gainer in the top 100 assets by market cap.

FXempire, BTC, Crypto, Altcoins
Source: Coin Market Cap

The 33rd ranked coin by market cap traded at $1.14, noting 4.19% daily gains. Over the last two days, MANA’s price recovery above the $1.13 mark has instilled positive momentum for the coin.

FXempire, MANA, Crypto
MANA Price Action | Source: FXEmpire

If bulls push MANA above the $1.15 mark, further gains could be expected in the near term for the alt.

So, what do altcoins need to recover?

Most of the top altcoins have a high BTC correlation during bear markets. The top coin’s price movement and volatility provide ample opportunities for alts to rally.

Crypto analyst Rekt Capital notes that BTC would need a monthly close above the $35,000 mark for a bullish higher timeframe close and to keep losses at bay. While a monthly close above the $35,000 mark may seem unachievable, if volatility and buying pressure takes on the same could pan out in favor of the bulls.

BTC’s monthly close above the key resistance at $35,000 could aid positive momentum to altcoin trajectories. In the last week, BTC’s price has made some decent progress recovering above the range low of around $28,600, but a push from bulls above the $30,000 mark would be needed for altcoins to move upwards.

Analyst Rekt Capital also highlighted that for ‘BTC to develop some semblance of bullish momentum, it needs to keep $28600 as support for price to challenge $32000.’ However, a BTC weekly close below the $28600 mark would be bearish.

Bitcoin (BTC) Holds Tight as TerraUSD Woes Hit the Crypto Market

Key Insights:

  • Bitcoin (BTC) held on to early gains going into the afternoon session despite the broader market hitting reverse.
  • TerraUSD (UST) and Terra (LUNA) woes worsened this morning on news of Terra Lab seeking funding to stabilize UST.
  • Bitcoin (BTC) technical indicators flash red, with bitcoin sitting below the 50-day EMA.

Bitcoin (BTC) held onto early gains this morning despite TerraUSD (UST) and Terra (LUNA) continuing to freefall.

On Tuesday, BTC rose by 3.11%. Partially reversing an 11.6% slide from Monday, BTC ended the day at $31,013.

While the broader crypto market found some much-needed support, TerraUSD and LUNA continued to free fall.

TerraUSD and LUNA Continue to Tumble as Investor Uncertainty Grows

This morning, UST tumbled to an all-time low of $0.1977 before finding support.

Terra USD falls to sub-$0.20
USTUSD 110522 Daily Chart

At the time of writing, LUNA was down by 80.8%, with LUNA falling to a morning low of $3.23.

LUNA sinks to sub-$5.00
LUNAUSD 110522 Daily Chart.

Despite the market angst over UST, the Bitcoin Fear & Greed Index avoided another decline this morning.

Supported by bitcoin’s partial recovery on Tuesday, the Index climbed from 10/100 to 12/100. However, the Index remains deep in the “Extreme Fear” zone, reflecting investor anxiety over the threat of another sell-off.

BTC Fear & Greed 110522

For bitcoin and broader market crypto investors, several key drivers will be in focus today, which could test investor resilience.

Key Drivers to Dictate BTC and Crypto Market Sentiment Rise

The unrelenting UST and LUNA sell-off is likely to plague the broader crypto market. Immediate knock-on effects are evident in Anchor Protocol (ANC) and to a lesser extent, Avalanche (AVAX).

At the time of writing, ANC was down by 53.9%.

Anchor Protocol hit by TerraUSD sell-off and Do Kwon silence.
ANCUSD 110522 Daily Chart

The UST meltdown has already garnered the attention of US Treasury Secretary Janet Yellen. Other lawmakers are likely to jump in as the broader market reversal gathers pace.

Without the appropriate regulatory framework in place to protect investors, a lack of control may lead to lawmaker ire in the coming days.

To add more fuel to the fire, US inflation figures for April are due out later today. We expect plenty of market sensitivity to the numbers. Softer numbers would be crypto market positive, though much will depend on lawmaker chatter and news updates on UST and LUNA.

Terra Lab CEO and co-founder Do Kwon has been silent on Twitter since an early Tuesday morning post saying,

“Getting close… Stay strong, lunatics.”

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 1.96% to $31,623.

BTC avoids the red despite UST angst.
BTCUSD 110522 Daily Chart

Technical Indicators

BTC will need to avoid the $31,158 pivot to target the First Major Resistance Level at $32,483 and Tuesday’s high of $32,625.

BTC would need the broader crypto market to support a return to $32,000.

An extended rally would test the Second Major Resistance Level at $33,947 and resistance at $34,500 The Third Major Resistance Level sits at $36,736.

A fall through the pivot would test the First Major Support Level at $29,697. Barring another extended sell-off, BTC should steer clear of sub-$28,000 levels. The Second Major Support Level at 28,368 should limit the downside.

Avoiding the pivot would support a BTC return to $32,000. UST fails to spook BTC holders.
BTCUSD 110522 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. BTC sits below the 50-day EMA, currently at $34,507. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; BTC negative.

A move through the 50-day EMA would support a run at $37,500.

EMAs signal red, with BTC well below the 50-day EMA.
BTCUSD 110522 4-Hourly Chart

Bitcoin Stabilised but Has Trouble to Reverse Strongly

Bitcoin Price Action and Indicators

Bitcoin added a symbolic 0.1% on Tuesday, ending the day around $31K and adding another $500 this morning. Ethereum has been adding 0.2% in the past 24 hours. Other leading altcoins from the top 10 showed mixed dynamics, ranging from a 10.8% decline (Avalanche) to a 0.2% gain (Binance Coin). The total capitalisation of the crypto market, according to CoinMarketCap, declined 1.6% overnight to $1.42 trillion. The Bitcoin Dominance Index rose 0.4% to 42.2%. The Cryptocurrency Fear and Greed Index added 2 points to 12 by Wednesday, starting recovery from an area where it rarely lingered.

Chart, histogram Description automatically generated

BTC Price Forecast

Although Bitcoin managed to close Tuesday’s trading with a proper strengthening, a powerful offensive did not happen, as bull buying was choked again by stock market pessimism. It remains a situation where the stock or debt markets will determine whether we see another rebound from the critical $30K level or a failure of support and a complete surrender of the buyers. Cardano creator Charles Hoskinson has announced the beginning of new crypto winter. However, he does not see any factors that could trigger the market to rebound soon.

Crypto News

Cryptocurrency investment company Galaxy Digital reported a net loss of $111.7 million for the first quarter of this year. Galaxy Digital founder Mike Novogratz allowed bitcoin to decline further in the coming quarters due to the negativity on Wall Street. Meanwhile, last week saw an influx of institutional investors into crypto funds after four weeks of capital withdrawals.

MicroStrategy chief executive Michael Saylor said it has no plans to sell its cryptocurrency reserves. He said bitcoin would have to fall below $3562 for the firm to have insufficient assets to secure loans. El Salvador has bought another 500 bitcoins at an average of $30,744 amid a fall in the crypto market. Last autumn, the country’s recognition of BTC as legal tender was a landmark event for the global economy.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

Bitcoin at 30k, Back to the Bottom of the Long-term Range

Bitcoin Sell-Off on Monday

Bitcoin collapsed 9.5% on Monday and dipped temporarily below $30K in early trading on Tuesday, stabilising at $31.3K. Ethereum has lost 3.9% in the past 24 hours, while other leading altcoins in the top 10 have fallen from 8.7% (Solana, Cardano) to 12% (Avalanche).

Total crypto market capitalisation, according to CoinMarketCap, fell 7% overnight to $1.44 trillion. Bitcoin’s dominance index rose 0.3% to 41.8% on more altcoin weakness.

The cryptocurrency Fear and Greed Index was down 1 point to 10 by Tuesday and remains in a state of “extreme fear”, touching a low point for the seventh time in the past year. An even higher level of fear in the last four years that we have only seen in March 2020 and September 2019.

Terra Fall and Reaction

Terra and TerraUSD continue to lose ground. Against this backdrop, the Luna Foundation Guard (LFG) has committed $1.5bn to protect the “stability of UST and the Terra ecosystem as a whole”. Stablecoin UST, designed to be as close to the value of the USD as possible, lost more than 30% at one point overnight. But at the time of writing, it is trading at a 14% discount to the US currency.

Chart, histogram Description automatically generated

Crypto Markets Analysis – The Bigger Picture

The current plunge is a retouch of the lows made in January and July last year for the first cryptocurrency. This could look like a last line of defence for the bulls, who may try to push back from the lower end of the trading range since early January.

However, many markets are on a similar informal frontier separating a correction from a potential collapse, so the situation in the crypto market could largely determine sentiment in the deeper debt and equity markets.

Judging by the dynamics of Stablecoin, the crypto market is undergoing one of its most massive tests of the entire market periphery, which could determine the credibility of the crypto market for many months or years to come. As we can see, Ether and Bitcoin remain resilient and robust enough to make them somewhat of a safe harbour within the stormy crypto sea.

At the same time, the collapse in quotations has not yet affected miners’ confidence in the cryptocurrency’s future, as the BTC network’s hash rate continues to grow.

Ray Dalio, the founder of Bridgewater Associates, one of the biggest hedge funds, said that bitcoin should be in investors’ portfolios. Still, the cryptocurrency itself is not a good competitor to gold in terms of inflation protection. But that could change in the next five to 10 years.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

Bitcoin Falls Below $35,000 as Tron Continues Its Rally

Key Insights:

  • BTC’s price fell to as low as $34,200, on May 8.
  • Fee reward ratio presented a dominantly bearish market-like situation for the larger crypto market.
  • However, Tron’s TRX token rallied on bullish sentiment.

Bitcoin (BTC) made lower lows, over the past four days, slipping past some of its crucial support zones as volatility and losses knew no bounds. As highlighted in a previous FXEmpire article, most top tokens like AVAX, LUNA, and AAVE registered losses on their daily and weekly charts.

Strangely, however, Tron’s TRX made a power-packed comeback, rallying even as the global crypto market cap continued its downtrend.

Tron rallies against odds

The Tron ecosystem has been on fire lately, which has ensured a bullish narrative for TRX even as the larger crypto market falls in heavy losses. Tron’s algorithmic stablecoin USDD went live last week and has since been listed on several platforms for decentralized finance (DeFi) protocols.

Tron DAO Reserve subsequently announced that it purchased 504.6 million TRX to back the algorithmic stablecoin, as the project aims to leverage a decentralized forex reserve similar to Terra’s UST reserves.

On Saturday, Tron’s founder Justin Sun revealed that the team behind the project had purchased 504,600,250 TRX at an average price of 0.07727 per unit. According to the Tron DAO Reserve, this buy aims to “safeguard the overall blockchain industry and crypto market.”

Notably, TRX’s price rose in tandem with the ecosystem-centric announcements. TRX’s price jumped by almost 47% since May 1 amid heightened positive social sentiment for the ecosystem and its native token.

At the time of writing, TRX traded at $0.09067, noting 7.77% daily and 32.64% weekly gains.

FXempire, TRX, Crypto, Tron
TRX Price Action | Source: FXEmpire

Notably, Tron following Terra’s UST reserve system for its USDD stablecoin has acted in favor of TRX’s trajectory. However, the question remains whether TRX gains could be sustained. Well, sustaining long-term gains could depend on the larger crypto market, so let us look at BTC and the larger trajectory.

Short-term holders trigger BTC losses

One of the reasons for the recent BTC losses could be short-term investors taking quick profits or exiting the market too soon. Looking at the exchange inflows for BTC, it was clear that inflows involved coins dormant for a maximum of three months and thus likely to be owned by more speculative investors.

Additionally, CryptoQuant analysts suggested that the Fee/Reward Ratio indicated that we are in a bear market. Miner’s Fee to Reward Ratio is usually high during the bull market, while at its lowest point during the bear market.

FXempire, Tron, Crypto
Source: CryptoQuant

After BTC registered $65,000 ATH, the Fees to Reward Ratio has dropped significantly, indicating a bear market and miners’ incentive to sell their reserves to cover their expenses.

Looking at the larger market’s bearish condition, it would be interesting to see how TRX’s rally pans out.

Top DeFi Token Price Analysis – LUNA, AVAX, UNI, and AAVE

Key Insights:

  • BTC’s over 10% fall ensured larger market sell-offs, over the last week.
  • DeFi tokens had a no different fate as most tokens saw double-digit losses.
  • While AVAX, LUNA, and AAVE saw the most losses, UNI maintained above the key support level.

It was a bearish week for the larger cryptocurrency market, as the global crypto market cap sunk below the $1.6 trillion mark. BTC’s fall below the critical support levels pushed the top coin by almost 10% to visit sub-$35,000 for the first time since February.

As highlighted in the FXEmpire’s Crypto Weekly Review, investor angst over inflation and Fed monetary policy hit the appetite for riskier assets, which affected the crypto market, triggering a fall for most top coins.

As bears took over the market, the broader market sell-offs saw $146 billion wiped out to leave the total crypto market cap at $1,571 billion on Sunday evening.

DeFi tokens, much like the rest of the market had a high correlation to Bitcoin facing the brunt of the larger market sell-offs. This piece shall delve into the price action of some of the top DeFi tokens like AVAX, LUNA, Uniswap, and Aave.

Terra (LUNA)

After gaining significantly in terms of price for the first quarter of this year, Terra’s LUNA finally took a break from gains. LUNA’s price fell under the $65 mark for the first time since Feb. 26, triggering major sell-offs for the token.

At the time of writing, LUNA traded at $65.74, noting a 10.43% price loss on the daily time frame and 17.35% losses on the weekly chart. LUNA started the year on a high note recording $91 as the daily price high on Jan. 1; since then, the coin has lost value, trading below $70, at press time.

FXempire, LUNA, Crypto
LUNA Price | Source: FXEmpire

While Terra’s ecosystem saw considerable strategic developments, over the last 48 hours, the same couldn’t do much for LUNA’s price. Notably, Terra increased the native stablecoin TerraUSD’s (UST) liquidity and utility across ecosystems. Additionally, the blockchain also welcomed a new Inter-Blockchain Communication Protocol (IBC) called Evmos, which is the EVM compatible hub of Cosmos.

That said, LUNA’s total value locked in DeFi saw one of the biggest drops falling by over 17% over the last day.

FXempire, LUNA, Crypto
Source: Defilama

Avalanche (AVAX)

The beginning of the last week brought decent gains for AVAX as many in the market anticipated a rally. Avalanche saw a strong rebound, over the last week, after testing a key inflection area as its support; however, the recent BTC fall to $35,000 pulled back AVAX’s price.

At the time of writing, AVAX’s price oscillated at $52.66, noting 7.75% daily and 11.37% weekly gains. AVAX was testing the crucial long-term support at $52, and a fall below the same could fuel further losses.

FXempire, Avalanche, Crypto, AVAX
AVAX Price Action | Source: FXEmpire

The relative strength index for AVAX was back in the oversold zone after making a recovery from the same on May 1. A push by bulls triggering an RSI reversal could be key to AVAX’s trajectory in the coming week.

Uniswap (UNI)

UNI’s daily chart presented a bearish outlook for the token as the coin traded at $7.21, noting a 3.98% daily loss in price. While UNI’s losses relative to the larger market were sustained, a persistent downtrend could be observed in the coin’s trajectory.

Notably, a price downfall was reinforced in late March when the coin’s rally halted around the $12 resistance mark. UNI’s price has continued the downtrend following the rejection at the $12 mark.

FXempire, Uniswap, Crypto
UNI Price Action | Source: FXEmpire

HOWEVER, the RSI for UNI was still battling at the border of the oversold zone. In the coming days, a push from bears can push the RSI in the oversold zone sending the token below $6 if sell-side pressure continues.

Nonetheless, since UNI’s daily gains weren’t as aggressive as some of the other DeFi tokens, the same could prove to be a turning point for UNI if buyers can push prices above the $10 zone in the near term.

Aave (AAVE)

At the time of writing, AAVE traded at $129.20, noting 6.14% daily and 8.61% weekly losses. The coin’s RSI had made lower lows since March-end presenting domination of sellers in comparison to buyers. However, despite the daily gains, the RSI had still maintained just above the oversold zone.

FXempire, AAVE, Crypto
AAVE Price Action | Source: FXEmpire

That said, AAVE’s TVL had fallen to the $10 billion mark after recording the high of $19 billion in October last year.

Price-wise, AAVE saw a brief rally following the interest rate hike announcement in the US. For now, the coin was testing the long term support at $129 mark, a fall below this level could cause further sell-side pressure.

Crypto Weekly Review May 8 – Bitcoin (BTC) Sinks to Sub-$35,000

Key Insights:

  • It is a bearish week for the broader crypto market, with Bitcoin (BTC) sliding by 10% to visit sub-$35,000 for the first time since February.
  • Investor angst over inflation and Fed monetary policy hit appetite for riskier assets, which spilled over to the crypto market.
  • Several cryptos bucked the trend in the week, including Algorand (ALGO), which ended the week up by 25%.

Bitcoin sinks to sub-$35,000 as bearish sentiment hit the crypto market in the week ending May 8, 2022. Risk aversion stemming from inflation and investor sentiment towards Fed monetary policy hit riskier assets.

The correlation between bitcoin (BTC) and the NASDAQ 100 strengthened in the week. As result, the NASDAQ sell-off sent the broader crypto market into a tailspin.

BTCNASDAQ 0605
BTC – NASDAQ correlation.

The broad-based crypto sell-off saw $146 billion wiped out to leave the total crypto market cap at $1,571 billion on Sunday afternoon.

Bitcoin (BTC) Sends the Crypto Market into a Tail Spin

In the week ending May 8, BTC is currently down 10%. Following a 2.49% loss from the previous week, BTC looks set to end the week at sub-$35,000. At the time of writing, BTC stood at $34,603. It will be a fifth consecutive week in the red for BTC.

BTCUSD 0805 Weekly

After recovering from a January sell-off, BTC bounced back to $48,000 levels in late March before the current reversal.

Reports of bitcoin whales selling bitcoin added to the market angst over the weekend, with the Bitcoin Fear & Greed Index sliding into the “Extreme Fear” zone.

Bitcoin Fear & Greed 080522

The Index was in the “Greed” zone, with a value of 60/100 on March 28 before sliding to 18/100 on May 8.

Bitcoin Fear & Greed Chart 080522

BTC wallet data suggests that the current downward trend across the global equity markets is causing BTC holders to reduce exposure to riskier assets and meet possible margin calls.

On Friday, CryptoQuant reported that the number of wallets holding between 10 and 10,000 BTC sent more crypto to exchanges than wallets holding between 0.01 and 10 BTC.

Things were no better for the rest of the crypto top ten.

The Broader Crypto Market Tracks Bitcoin into the Red

In the week ending May 8, Terra (LUNA) is down by 25.5% to lead the way down, with SOL sliding by 13.4%

LUNA 0805 Weekly

BNB (-8.9%), AVAX (-11.4%), and ETH (-10.0%) are also in the deep red, while ADA (-6.6%) and XRP (-6.3%) are seeing relatively modest losses.

For LUNA, several factors beyond bitcoin’s influence contribute to the heavy loss. These included LUNA sales to support the TerraUSD (UST) peg, a marked decline in total value locked, and investor sentiment towards the Luna Foundation Guard’s (LFG) latest $1.5bn in BTC purchases.

A number of cryptos managed to buck the trend, however, with Algorand (ALGO) rallying by 25.1% to grab the headlines.

ALGO 0805 Weekly

Algorand (ALGO) Sees Strong Staking Demand to Support a Breakout Week

According to Defi Llama, Algorand’s total value locked (TVL) increased by 19.4% to $187.36 million in the week.

Algo TVL 080522

Increased demand for ALGO as a staking crypto provided the upside in the week, with Algofi, a DeFi platform on the Algorand blockchain, seeing its dominance hit 61.22%. Users can lend ALGO on the Algofi protocol to earn ALGO.

ALGO is a popular staking crypto, as ALGO holders can stake as little as one ALGO to earn interest.

Early in the week, Algorand hit the news for an altogether different reason. On Monday, FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar.

Luna Foundation Guard Announces Purchase of $1.5bn in Bitcoin

Key Insights:

  • Overnight, Terra’s (LUNA) Luna Foundation Guard (LFG) announced a series of Bitcoin (BTC) purchases totaling $1.5bn.
  • The BTC purchases, reportedly over the last few days, came during a choppy time for BTC and the broader crypto market.
  • Technical indicators are bearish for LUNA, with LUNA sitting below the 50-day.

The Luna Foundation Guard (LFG) has been in bitcoin (BTC) purchase mode since it announced plans to hold $10 billion in BTC reserves for TerraUSD (UST). In February, the LFG created a BTC denominated reserve for UST.

UST is pegged to the USD. The pegging mechanism involves the issuance and burning of LUNA tokens. At times when the price of UST sits above $1, users can mint UST by burning LUNA. Burning LUNA then reduces the supply of LUNA, which increases the value of LUNA.

To reach its $10 billion BTC reserve target, the LFG has actively been purchasing BTC. This week, the LFG announced another sizeable purchase.

The Luna Guard Foundation Buys Bitcoin Reserves Totaling $1.5bn in BTC

Overnight, the Luna Foundation Guard (LFG) announced the purchase of another $1.5bn in BTC.

The LFG retweeted several tweets from the media on the latest series of BTC purchases.

According to CNBC,

“The Luna Guard Foundation has acquired $1.5 billion in bitcoin to bolster the reserves of its most popular stablecoin, known as U.S. Terra.”

CNBC went on to say,

“The reserve now holds about $3.5 billion in bitcoin, which puts the UST Forex Reserve in the top 10 bitcoin holders in the world. It also holds north of $100 million in Avalanche, another cryptocurrency.”

According to the report, the LFG purchased $500 million from Three Arrows Capital, a crypto hedge fund. The other $1 billion came from an OTC swap.

 

Do Kwon, co-founder, and CEO of Terra Labs, also announced the $1.5 billion BTC purchase on Twitter, saying,

“LFG acquired 1.5B worth of bitcoin over the last few days.”

 

Do Kwon went on to tweet,

“Worry not about #Bitcoin – it is a fungible freedom to counter fungible state violence in fiat.”

Adding,

“And its rise will be inevitable as long as humanity yearns to be free.”

News of the purchase had a muted impact on LUNA, which succumbed to broader crypto market forces.

LUNA Price Action

At the time of writing, LUNA was down 0.10% to $82.28.

LUNA remains under pressure following Thursday’s 4.43% decline that reversed a 4.46% gain from Wednesday.

On Thursday, market jitters over inflation and Fed monetary policy left LUNA and the broader crypto market in negative territory.

LFG purchase has muted impact on LUNA

Technical Indicators

LUNA will need to move through the day’s $82.92 pivot to target the First Major Resistance Level at $87.27. LUNA would need the broader crypto market to support a breakout from $85.

An extended rally would test resistance at $90 and the Second Major Resistance Level at $92.15. The Third Major Resistance Level sits at $101.38.

Failure to move through the pivot would bring the First Major Support Level at $78.03 into play. Barring an extended sell-off, LUNA should steer clear of sub-$75. The Second Major Support Level sits at $73.69.

LUNA 060522 Hourly
Failure to move through the pivot will leave LUNA under pressure.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. LUNA sits below the 50-day EMA, currently at $84.89. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA; LUNA price negative.

A move through the 50-day EMA would shift near-term sentiment.

LUNA 060522 4 Hourly
Indicators are bearish with LUNA sitting below the 50-day EMA.

BTC and ETH Bears in Control, ALGO Aims Major Reversal

Key Insights:

  • Bitcoin (BTC) is facing a major hurdle near $39,150.
  • Ether (ETH) is struggling to rise above $2,875 and $2,900.
  • ALGO surged over 15%, but it must settle above $0.70 for upside continuation.

Bitcoin

Recently, the bitcoin price started an upside correction above the $38,000 level. The price climbed above the $38,500 resistance level and the 21 simple moving average (H1).

However, the bears were active near the $39,150 level. A swing high was formed near $39,150 and the price slowly moved lower. There was a break below the $38,800 level and the 21 simple moving average (H1).

Bitcoin BTC Hourly Chart
BTC Chart by FXEmpire

Bitcoin is now struggling to stay above the $38,150 support zone. A close below $38,150 might start a sharp decline towards the $37,500 and $37,200 levels.

Ethereum (ETH)

ETH also started an upside correction above the $2,800 level and the 21 simple moving average (H1). There was a move above the $2,850 level.

The bears appeared near the $2,875 level. The bulls made two attempts to clear $2,875 resistance but failed. The price started another decline and traded below $2,850. The price is now showing bearish signs below $2,820 and the 21 simple moving average (H1).

Ether ETH Hourly Chart
ETH Chart by FXempire

Immediate support sits near the $2,800 level and a connecting trend line on the hourly chart. The next major support sits near the $2,775 level, below which the price might take a hit.

Algorand (ALGO)

ALGO started a major decline from the $1.00 resistance zone. There was a nasty drop below the $0.80 and $0.70 support levels.

Finally, the price found support near the $0.55 zone. A support base was formed and the price started a recovery wave. It surpassed the $0.60 resistance. Today, it gained over 15% and spiked above the $0.70 resistance.

ALGO Daily Chart
ALGO Chart by FXEmpire

It even tested the 38.2% Fib retracement level of the downward move from the $1.00 swing zone to $0.55 low. ALGO is now attempting a close above a major bearish trend line with resistance near $0.70 on the daily chart. A close above the $0.70 level might start a strong reversal.

The next key resistance on the upside may perhaps be near $0.770 or $0.800. If there is no upside break, the price could revisit the $0.550 support zone.

ADA, BNB, and DOT price

Cardano (ADA) is still consolidating below the $0.800 resistance zone. If the bears remain in action, the price could decline towards the $0.750 level.

Binance Coin (BNB) is sliding and might revisit the $382 support. The next major support sits near the $375 level, followed by $365.

Polkadot (DOT) settled below the $15.00 level, which is now acting as a resistance. On the downside, the $14.00 level is a major support zone.

A few trending coins are AVAX, TRX, and NEAR. Out of these, TRX is gaining pace above the $0.070 level.

Can Ecosystem-centric Developments Push AVAX’s Price?

Key Insights:

  • The Avalanche ecosystem has been bustling with fundings and investments.
  • AVAX price still moved in a rangebound trajectory.
  • However, short-term gains fueled intraday trading volumes for the coin.

Ethereum-killers like Terra’s LUNA and Avalanche’s AVAX have had their moments of glory, rallying solo as the larger market consolidated. At press time, however, with the larger market heading towards oversold despite the recent short-term gains of bitcoin, an altcoin season doesn’t seem to be on most tokens’ cards.

Nonetheless, the ecosystem-centric growth for projects like Avalanche is notable. So, amid funding rounds, strategic investments, and high development activity, what will be AVAX’s fate in the near term?

Pumping Funds Into the Ecosystem

While AVAX didn’t make any remarkable moves this year on the price front, Avalanche’s ecosystem has been on a decent run. In early April, the Luna Foundation Guard (LFG) announced its intentions to buy $100 million worth of AVAX tokens from the Avalanche foundation.

Additionally, in April-mid, the Avalanche foundation raised $350 million in new financing at a $25 billion valuation. Furthermore, recently the firm also announced a strategic investment in Yeti Finance – a native decentralized borrowing mechanism.

Despite the recent developments, there hasn’t been any significant growth in the price of AVAX. The larger market’s consolidation and BTC’s price movement under the $40,000 mark overshadowed AVAX’s ecosystem growth.

Where is AVAX’s Price Headed?

AVAX has been trading between $65 and $80 for most of April. The coin’s price has maintained a rangebound trajectory since it broke the $74 support line.

At press time, AVAX traded at $69.56, noting a 1.32% rise on the daily chart and an 11.25% fall on the weekly. Nonetheless, with the asset’s price testing a crucial support line, buyers are expected to defend this level vigorously.

FXempire, AVAX, Crypto

For now, with AVAX trading above $68, the same level can act as a strong support. If AVAX bulls can push prices up, the next significant resistance would be at the $75 level for the coin.

AVAX’s market capitalization at the time of writing stood at $18.6 billion, presenting an over 25% decline from the market capitalization of $25.90 recorded at the beginning of this month.

Additionally, the lower trade volumes for the token signified a lowered retail interest in the coin. Trade volumes had dropped from around $1.74 billion at the beginning of the month to about $489 million at writing.

So, can the AVAX buyers step in at the lower support level, or will the bearish action continue to drive prices down?

Looking at the price action at press time, AVAX’s price still looked rangebound with a lower sloping Relative Strength Index (RSI). RSI’s downtrend highlighted that sellers still dominated buyers, and the larger market sell-offs didn’t spare AVAX.

Nonetheless, a push from bulls in the short-term could push the 10th ranked token towards its higher resistance at $80 if the market conditions are ripe for gains.

Bitcoin and ETH Near Breakout Zone, SOL Eyes Bullish Break

Key Insights:

  • Bitcoin traded below $38,000 before the bulls took a stand.
  • Ether (ETH) is attempting a recovery wave above $2,900.
  • SOL seems to be forming a base for a rally above $110.

Bitcoin

Yesterday, bitcoin price saw a bearish reaction from the $40,750 resistance zone. There was a sharp decline below the $40,000 support and the 21 simple moving average (H1).

It even traded below the $38,200 support, but the bulls took a stand near $37,800. The price started a decent recovery wave above the $38,200. There was a move above the $39,000 level and the 21 simple moving average (H1).

Bitcoin

On the upside, bitcoin is now facing resistance near the $39,300 level (the recent breakdown zone). A clear break above $39,300 could set the pace for another upward move.

Ethereum (ETH)

ETH also followed a similar pattern from the $3,030 resistance zone. There was a clear move below the $2,900 support level and the 21 simple moving average (H1).

It traded as low as $2,770 before there was a recovery wave. The price climbed above the $2,850 level and the 21 simple moving average (H1). It is now attempting a clear move above the $2,900 and $2,910 resistance levels.

Ethereum (ETH)

If the bulls succeed, the price could rise towards the $3,000 level. Conversely, there could be a fresh decline below the $2,850 support.

Solana (SOL)

SOL started a major decline from the $140 level. It traded below the $120 and $115 support levels to enter a bearish zone.

The price even moved below $100 and the 21-day simple moving average. However, the price found a strong buying interest near the $94-$95 zone. It seems like SOL is now forming a base above the $94 level.

Solana (SOL)

On the upside, an initial resistance is near the $100 level. The first key resistance is near the $102 level and the 21-day simple moving average. There is also a crucial bearish trend line with resistance near $102 on the daily chart.

A close above the trend line resistance and the 21-day simple moving average could set the pace for a move towards the $110 level. The next target for the bulls may perhaps be $120. If there is no upside break, the price could dive below $94.

ADA, BNB, and DOT price

Cardano (ADA) is consolidating losses below the $0.855 level. To start a recovery wave, the price must clear the $0.855 and $0.862 resistance levels.

Binance Coin (BNB) settled below the $400 support. If there is no move back above $400, there is a risk of a drop to $380.

Polkadot (DOT) is struggling to stay above the $17.00 support. A downside break and close below $17.00 could set the pace for a move towards $16.20.

A few trending coins are AVAX, APE, and AR. Out of these, APE is gaining pace above the $19.00 resistance level.

Bitcoin Visits sub-$38,000 as Correlation with the NASDAQ Strengthens

Key Insights:

  • On Tuesday, Bitcoin (BTC) fell for the fifth time in seven sessions.
  • Risk aversion from the US equity markets hit the crypto market, with the broader market seeing heavy losses.
  • Bitcoin’s technical indicators continue to flash red, with Bitcoin sitting well below the 50-day EMA.

On Tuesday, Bitcoin (BTC) slid by 5.74%. Reversing a 2.46% gain from Monday, Bitcoin ended the day at $38,117.

A bearish session saw Bitcoin visit sub-$38,000, with a day low of $37,727. It was Bitcoin’s first fall to sub-$38,000 since March 14, 2022.

Bearish sentiment from the US equity markets spilled over the crypto market, with the crypto majors tracking the NASDAQ.

LUNA tumbled by 8.76%, with ADA and XRP sliding by 7.92% and 7.49%, respectively.

AVAX (-5.77%),  BNB (-4.53%),  ETH (-6.59%), and SOL (-5.22%) weren’t far behind.

The sell-off saw DOGE fall back out of the top 10 with a 12.90% loss.

Bitcoin Fear & Greed Index Hits Reverse

This morning, the Fear & Greed Index stood at 21/100. Despite Bitcoin’s brief return to $42,900 last week, the Index has continued to sit in the “Extreme Fear” zone

The Index has remained within the “Extreme Fear” and “Fear” zones since April 07.

The “Fear” and “Extreme Fear” zones reflect investor expectations of further price deterioration.

For the Bitcoin bulls, the Index will need to move back through to 46/100 to bring April’s high of $47,433 into play. At present, the Index reflects crypto investor sentiment.

Bitcoin Fear & Greed Index 270422

Bitcoin Correlation with the NASDAQ 100 Strengthens

For the US equity markets, it was a particularly bearish Tuesday session. The NASDAQ 100 tumbled by 3.95%, with the Dow and the S&P500 seeing losses of 2.38% and 2.81%, respectively.

For crypto investors looking to break away from Fed policy influence and traditional market forces, the correlation between Bitcoin and the NASDAQ has strengthened.

Crypto investor sentiment towards Fed monetary policy and fears of a recession has realigned with that of more traditional asset class investors.

The correlation between Bitcoin and the NASDAQ strengthened from February to April. The closer correlation coincided with the start of the war in Ukraine and a marked shift in Fed monetary policy.

BTCNASDAQ

At the time of writing, the NASDAQ 100 mini was down 16 points, while the Dow mini was up 106 points.

Bitcoin Price Action

At the time of writing, Bitcoin was up by 0.01% to $38,121.

BTCUSD 270422 Daily
A move through $39,500 would support a return to $42,000.

Technical Indicators

Bitcoin will need to move through the day’s $38,880 pivot to target the First Major Resistance Level at $40,038. Bitcoin would need broader market support to break out from $39,500.

In the event of an extended rally, Bitcoin could test the Second Major Resistance Level at $41,950 and resistance at $42,000. The Third Major Resistance Level sits at $45,023.

Failure to move through the pivot would bring the First Major Support Level at $36,968 into play. Barring another extended sell-off, Bitcoin should avoid sub-$36,000. The Second Major Support Level sits at $35,818.

BTCUSD 270422 Hourly
Failure to move through the pivot would bring sub-$37,000 into play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $39,943. This morning, we saw the 50-day EMA pull back from the 100-day EMA, delivering downside pressure. The 100-day EMA also pulled back from the 200-day EMA, BTC negative.

A move through the 50-day EMA would support a run at $42,000.

BTCUSD 270422 4-Hourly
Technical indicators suggest more downside to come.

0x Labs Raise $70 Million From Coinbase, Opensea and Jared Leto

Key Insights:

  • 0x Labs closed a $70 million Series B financing round.
  • Coinbase’s NFT marketplace also makes use of 0x’s technology.
  • Earlier in 2017, 0x Labs raised another $24 million in a ZRX token sale.

NFTs are slowly taking center stage, and some are in the bid of not only promoting but also being a central part of that growth. Coinbase is one such company that, after touching base with NFTs this month, is now helping others in this field excel.

0x Takes Another Giant Leap

According to a report from Forbes, 0x Labs has closed a $70 million Series B financing round with the bid led by the Greylock Partners.

However, they weren’t alone as others, including Pantera, Jump Capital, Ethereum NFT marketplace OpenSea, and Hollywood actor Jared Leto.

The San Francisco-based decentralized exchange infrastructure provider is a key player in the industry. 0x Labs’ technology was also used by Coinbase for its very own NFT marketplace Coinbase NFT. Coinbase itself was a participant in this $70 million investment.

This funding round, however, isn’t the first for 0x Labs. Earlier in 2017, through the sale of the ZRX token, 0x Labs had managed to raise about $24 million and then another $15 million in a Series A equity round, which was led by Pantera Capital.

The company has been building its name in the NFT marketplace industry after releasing a set of NFT swap features in the first quarter of this year.

This way, it enabled users to exchange digital collectibles across multiple blockchains such as Ethereum, Polygon, Fantom, Avalanche, Optimism, BNB Chain, and Celo.

In doing so, 0x Labs also claimed this facility to be 50% less expensive than what the other leading NFT marketplaces such as OpenSea and LooksRare offer.

How Did ZRX Do, Though?

Although the coin did open under $0.2 at the time of its launch in 2017, within a few months, it managed to mark an all-time high of $2.7. However, the downfall and fluctuations that followed since have not made it easy for investors.

Over the course of the last four months, though, the token has had trouble breaching the $1 mark, which it managed to after rising by almost 50% post the launch of Coinbase NFT.

0x ‘s token ZRX is still stuck trading at $0.8

But the broader market bearish cues led to the price falling back to trade at $0.8 at the moment.

Bitcoin (BTC) and the Broader Market Slide as Risk Aversion Bites

Key Insights:

  • On Sunday, Bitcoin (BTC) rose for just the first time in 5-sessions.
  • Market sentiment towards Fed monetary policy left Bitcoin and the broader crypto market on the defensive.
  • Bitcoin’s technical indicators continue to flash red, with Bitcoin sitting well below the 50-day EMA.

On Sunday, Bitcoin (BTC) rose by 0.05%. Following a 0.68% decline from Saturday, Bitcoin ended the week down 0.56% to $39,466.

Last week, Bitcoin came under renewed selling pressure with market sentiment towards inflation and Fed monetary policy testing support for riskier assets.

It was a mixed Sunday session for the broader crypto market.

LUNA joined Bitcoin in positive territory, rising by 0.95%. It was a bearish session for the rest of the majors, however.

AVAX and SOL declined by 1.84% and 1.41%, respectively.

ADA (-0.11%), BNB (-0.52%),  ETH (-0.39%), and XRP (-0.93%) saw relatively modest losses.

Bitcoin Fear & Greed Index Hits Reverse

This morning, the Fear & Greed Index stood at 23/100. Despite Bitcoin’s brief return to $42,900 last week, the Index has remained within the “Extreme Fear” and “Fear” zones since April 07.

The “Fear” and “Extreme Fear” zones reflect investor expectations of further price deterioration.

For the Bitcoin bulls, the Index will need to move back through to 46/100 to bring April’s high of $47,433 into play.

Bitcoin Fear & Greed Index 250422

Across the global financial markets, the NASDAQ 100 mini was down 102.25 points this morning, with the Dow mini sliding by 267 points.

Last week, the NASDAQ 100 slid by 3.83%, with a 2.55% tumble on Friday doing the damage.

Earnings and Fed policy sank the US majors in the week, which spilled over to the crypto market. From the top 10 cryptos, LUNA bucked the market trend, rising by 16.8%.

This week, sentiment toward Fed monetary policy will continue to leave the crypto market under pressure.

News updates on China’s latest COVID-19 lockdown measures and the war in Ukraine are the key drivers as the global financial markets fret over supply chain disruption.

On the economic calendar, there are several key US stats to consider. On Tuesday, consumer confidence figures and Q1 GDP numbers on Thursday will draw attention ahead of inflation numbers on Friday.

Ultimately, the question will be whether the markets have been overly hawkish on the Fed’s interest rate trajectory to curb inflation.

Bitcoin Price Action

At the time of writing, Bitcoin was down by 0.93% to $39,101. A bearish start to the week saw Bitcoin slide to an early morning low of $38,753.

Bitcoin fell through the First Major Support Level at $39,026 before finding support.

BTCUSD 250422 Daily
Bitcoin kicks off the week testing support early.

Technical Indicators

Bitcoin will need to move through the day’s $39,482 pivot to target the First Major Resistance Level at $39,922. Bitcoin would need broader market support to break out from $39,500.

In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $40,384. The Third Major Resistance Level sits at $41,282.

Failure to move through the pivot would bring the First Major Support Level at $39,026 into play. Barring an extended sell-off, Bitcoin should avoid sub-$38,000. The Second Major Support Level at $38,586 should limit the downside.

BTCUSD 250422 Hourly
Failure to move through the pivot would leave support levels in play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $40,366. This morning, we have seen the 50-day EMA pull further back from the 100-day EMA, delivering downside pressure.

A move through the 50-day EMA would support a run at last week’s high of $42,997.

BTCUSD 250422 4-Hourly
BTC sits well below the 50-day EMA, with resistance at $40,000 now key.

Broader Crypto Market Hits Reverse

Elsewhere, XRP slid by 2.97% with ADA (-2.60%) and ETH (-2.03%) close behind.

AVAX (-1.96%), BNB (-1.20%), SOL (-1.91%), and Terra (-1.47%) also struggled, however.

Binance.US Adds Terra UST Stablecoin As Base Pair for Cryptocurrencies

Key Insights:

  • Binance.US officially listed UST as the base trading pair for Bitcoin today.
  • The stablecoin has had everyone’s attention ever since the $10B Bitcoin reserve announcement.
  • LUNA is nearing a new all-time high once again.

Terra, LUNA, and UST, these three words have been noticing a lot of attention from investors, developers, analysts, and traders for a while now in the crypto space.

The bullish storm that the DeFi chain has created will not slow down anytime soon. Especially not after today’s development.

UST Becomes a Base Pair

Being a base pair, other cryptocurrencies will be trading against UST as they currently do with USD, provided the option is available for them.

Earlier this month, Binance announced this development as it also announced that it would be delisting the UST/BTC trading pair closing all open trading orders. Currently, UST is only available as a base pair for Bitcoin.

However, Binance isn’t the first to do this since, at the beginning of this month, OKX, one of the top 20 cryptocurrency exchanges in the world, also added UST as a base pair for Bitcoin, Ethereum, Solana, and Avalanche.

TerraUSD has gained prominence in the space owing to its CEO Do Kwon’s statement about creating a $10 billion+ UST reserve in Bitcoin.

At its current value, $10 billion worth of Bitcoin translates to about 253183.79 BTC, which, if acquired by Terra, would make it the biggest holder of Bitcoin then, even higher than MicroStrategy’s current holdings, which is approximately 129,218 BTC.

LUNA, at the Moment

Terra’s native cryptocurrency LUNA is currently the best performing asset of the year, which gains between February to April, reaching 142.22%, marking a new all-time high of $119.5 at the same time.

Although trading at $93.5 LUNA is below forming a new ATH, it is on the way to breaching the $120 level gradually, thanks to the 23.5% rally observed three days ago.

LUNA is climbing the charts again after marking a new ATH this month

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.

FED Chair Powell Spooks Cryptos with Rate Hike and Recession Talk

Key Insights:

  • A bearish Thursday session left Bitcoin (BTC) down 2.14% to end the day at $40,491.
  • Fed Chair Powell sank the U.S equity and crypto markets with talk of a recession and a 50-basis point rate hike.
  • Technical indicators are bearish, with BTC tumbling through the 50-day EMA.

On Thursday, Bitcoin (BTC) fell by 2.14%. Following a 0.31% loss on Wednesday, BTC ended the day at $40,491.

A bullish start to the day turned sour as the markets responded to a scheduled Fed Chair Powell speech at the IMF.

Bitcoin had hit a day high of $42,997 to test resistance at $43,000 before tumbling to a day low of $39,865.

Elsewhere, AVAX (-4.00%), BNB (-3.25%), ETH (-3.03%), LUNA (-4.84%), and SOL (-3.63%) struggled.

ADA (-2.88%) and XRP (-2.53%) saw relatively modest losses.

Fed Chair Powell’s Speech Pummels Riskier Assets

On Thursday, Fed Chair Powell spoke at the Annual Economic Policy Conference National Association for Business Economics.

There were two key takeaways from the Powell speech. Firstly, the prospect of a fifty-basis point rate hike.

Discussing restoring price stability, Powell said,

“If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or in meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”

Secondly, Powell talked of the challenges of bringing down inflation without bringing down the economy.

Concerning growth, Powell said,

“I hasten to add that no one expects that bringing about a soft landing will be straightforward in the current context – very little is straightforward in the current context. My colleagues and I will do our very best to succeed in this challenging task.”

The combination of a more rapid move to policy-neutral and possibly beyond and the threat of recession weighed on riskier assets.

On Thursday, the NASDAQ 100 tumbled by 2.07%, with the futures in the red this morning to pressure the crypto markets further.

Bitcoin Price Action

At the time of writing, Bitcoin was down by 0.50% to $40,287.

BTCUSD 220422 Daily
Failure to return to $42,000 could leave Bitcoin under heavy selling pressure.

Technical Indicators

Bitcoin will need to move through the day’s $41,114 pivot to make a run on the First Major Resistance Level at $42,369. Bitcoin would need broader market support to return to $42,000 levels.

In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $44,252. The Third Major Resistance Level sits at $47,382.

Failure to move through the pivot would bring the First Major Support Level at $39,240 into play. Barring another extended sell-off, Bitcoin should avoid sub-$39,000. The Second Major Support Level sits at $37,985.

BTCUSD 220422 Hourly
Failure to move through the pivot would leave support levels in play.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $41,065. This morning, the 50-day EMA pulled back from the 100-day EMA, testing support. The 100-day EMA pulled back from the 200-day EMA, BTC negative.

A move through the 50-day EMA would support a return to $42,000 levels.

BTCUSD 220422 4-Hourly
A move through the 50-day EMA would bring $42,000 back into play.