Bitcoin May Finish a Brief Rebound but Is Unlikely to Go Below $10K

Bitcoin and Major Cryptos Changes in the Last 24 Hours

Bitcoin has been hovering around the 30K mark for a second day, forcing the rest of the crypto market to balance declines and gains. Ethereum has lost 1.2% in 24 hours but remains near 2,000. Altcoins from the top ten are mostly declining, losing between 0.7% (DogeCoin) and 3.8% (Polkadot). Tron is gaining 1.7% but has been little changed since the end of last week. Total crypto market capitalisation, according to CoinMarketCap, declined 1.1% overnight to $1.29 trillion. Bitcoin’s dominance index remained unchanged at 44.3%.

BTC Indicators and Technical Analysis

The Cryptocurrency Fear and Greed Index was up 4 points to 12 by Wednesday and remains in “extreme fear”. The index’s recovery from lows since 2019 is due to a waning selloff but not a market reversal to growth. Bitcoin has stalled at the psychologically significant 30K level and has also lost the momentum of the rebound at the 76.4% Fibonacci line from the downward move from late March to last Thursday’s lows.

BTC Future Scenarios and Price Forecast

This is a typical shallow counter-trend correction. The inability of the market to develop the offensive from the current levels would raise the question that the final target for the downtrend would be the 161.8% area of that move, which is near $11.3K.

Such a setback would cancel out all upside momentum from October 2020. So far, this scenario looks exceptionally pessimistic and needs to converge the disappointment of crypto-neophytes on top of an actual collapse of the global economy and stock market. Such a dip would leave Bitcoin’s price at only 16% of its peak, which has happened several times in its history.

Chart, histogram Description automatically generated

However, a significant drop below previous cyclical highs ($20K) would be unusual, although Bitcoin was previously repurchased on similar drawdowns. Perhaps a more cautious scenario would be a dip into the $20-23K area to close the gap at the end of 2020 or a return to the 2017 highs. The realist-optimistic scenario points to the possibility of cautious buying by long-term investors from current levels.

However, it does not suggest a new wave of explosive growth, as financial conditions and a return to the area at the start of 2021 are disappointing for those investors who have been buying cryptocurrencies as a way to make a quick buck. Moreover, inflation has weaned 10% off the dollar’s purchasing power over this period.

Crypto News

Among the news that caught our eye were: According to CoinShares, institutional investors invested $274 million in crypto funds last week, a record since the start of the year.

Following TerraUSD, another stable coin – DEI – lost its peg to the US dollar. According to the Congressional Research Service (CRS), the stable coin market needs strict regulation. Because of the speculative nature of cryptocurrencies, investors need more protection, or they could lose confidence in the markets, SEC chief Gary Gensler said.

The Portuguese authorities are considering introducing a tax on income earned from investments in digital assets. Dogecoin co-founder Billy Marcus called 95% of crypto-assets “trash” and suggested that 70% of investors don’t even understand the fundamentals of the crypto market.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

Crypto.com Expands Services With Shopify Offering 0 Transaction Fees

Key Insights:

  • Shopify will use Crypto.com Pay to enable crypto payments.
  • The facility will allow merchants to receive cryptocurrencies with 0 transaction fees.
  • Crypto.com is pushing adoption by recently announcing a five-year partnership with AFL.

In an announcement today, one of the world’s best-known cryptocurrency exchanges, Crypto.com, enabled Shopify merchants to receive payments in cryptocurrency with the help of Crypto.com Pay. 

Crypto.com Expands Merchant Reach

With this integration, Shopify merchants will be able to tap the market of customers who prefer to pay in cryptocurrencies and also open up opportunities for the current users who are looking to make use of this facility.

Crypto.com is even offering to waive the 0.5% settlement fee for the first month after integration on all transactions to incentivize Shopify merchants further. This will also help Crypto.com expand its payment services to other Shopify users as well.

Currently, Crypto.com enables users to make payments all around the world with 0 transaction fees, and they also incentivize individuals to make use of its native token, Cronos, with its payment platform. Users who pay through Crypto.com using Cronos receive a significant amount in crypto-cashback, which can run up to 10% during certain periods.

Going forward, Crypto.com users will be able to pay Shopify merchants using 20 cryptocurrencies ranging from Bitcoin to Apecoin, including Ethereum, Cronos, Dogecoin, and Shiba Inu as well.

Commenting on this announcement, Co-founder and Chief Executive Officer (CEO) of Crypto.com, Kris Marszalek, stated,

“Providing more customers and merchants the ability to engage in commerce using cryptocurrencies is a priority for Crypto.com. We are incredibly excited to integrate into Shopify, and to bring this capability to even more customers and merchants around the world.”

Crypto.com Furthers Its Partnerships

Marketing and advertising are the strongest suits of Crypto.com with brand ambassadors like Matt Damon. The exchange is thus building on it to reach a wider audience. 

As per that strategy, the most recent play was Crypto.com’s five-year partnership with Australian Football League, becoming the Official Cryptocurrency Exchange and Official Cryptocurrency Trading Platform for both AFL and AFLW.

But while it excels on the expansion front, it might not be doing so well on the investor front as Cronos holder try to recover from the devastating crash of May 9.

Although CRO is up by 16.64% over the week, it will be hard for the altcoin to counter the 43.35% plunge in price during the crash.

Cronos lost over 43% during the recent market crash

Your Crypto Brew: Bitcoin Dips Back Under $30,000 Amid China Growth Fears

Key Takeaways

  • After a positive weekend, cryptocurrency markets are giving back some gains on Monday, with BTC/USD back under $30,000. 
  • Weak Chinese data over the weekend have put fears about slowing global growth in the limelight.
  • US Retail Sales data and Fed Chair Powell’s speech, both Tuesday, will be key events for crypto markets this week.

State Of The Market

Cryptocurrency markets are seeing broad weakness at the start of the week following a weekend of stabilization. The total market capitalization of cryptocurrencies rallied to as much as $1.344 trillion on Sunday, up nearly 25% at the time from last Thursday’s multi-month lows under $1.1 trillion.

After closing out Sunday trade in the green for a third successive session, the longest positive run since March, the total market capitalization of cryptocurrencies has fallen a little more than 5.0% on Monday to around $1.26 trillion.

Data released out of China over the weekend showed steep declines in the YoY growth rates of both the nation’s Industrial Output and Retail Sales in April. Recent economic weakness in China comes as the country implements harsh lockdowns across major cities including financial hub Shanghai and the capital Beijing in order to contain the spread of Covid-19.

The latest data out of China, the world’s second-largest economy, highlights increased concerns investors have been having about slowing global growth as of late. These concerns, alongside concerns about central bank tightening, have weighed heavily on risk-sensitive assets such as equities and crypto in recent weeks.

Growth worries and central bank tightening fears will remain in focus this week with the release of April US Retail Sales figures followed by remarks from US Federal Reserve Chair Jerome Powell on Tuesday.

Markets expect the Fed to implement further 50 bps rate hikes at its next few meetings as it seeks to bring rates to a more neutral level amid persistently elevated US inflation. Against the backdrop of concerns about growth and tighter monetary policy, rallies in cryptocurrency markets may remain subject to being sold.

Bitcoin, Ethereum, Altcoins

In tandem with the recent swing in cryptocurrency market sentiment, bitcoin is back to trading just below $30,000 on Monday, down nearly 5.0% on the day, having rallied as high as $31,400 on Sunday. At current levels of around $29,000 per token, bitcoin’s market cap is around $570 billion, and its crypto market dominance is around 44.5%.

Similarly, ethereum is back to trading near the $2,000 per token level having gone as high as the upper $2,100s over the weekend. At current levels, its market cap is around $245 billion, and its crypto market dominance is around 19.3%.

Price action across most of the rest of the other non-stable coin cryptocurrencies in the top ten has been similar to that of bitcoin and ethereum over the past few days. On Monday, Ripple’s XRP was last trading lower by about 6.0% around $0.40 per token, and Binance’s BNB was last down around 5% and back to just below $300 per token.

Cardano’s ADA was last down about 4.5% to around $0.57 per token and Solana’s SOL was down just under 8.0% to around $54 per token. Popular meme coin DOGE was last down about 6.0% to just under $0.09 per token.

DeFi, NFTs

After last week’s LUNA-led rout that saw the market of major DeFi tokens collapse from near $100 billion to lows around $50 billion, sentiment has stabilized since the weekend. The market cap of major DeFi tokens is currently around $56 billion, little changed since Sunday.

In terms of the latest news regarding Terra’s LUNA, the market cap of the token native to Terra’s blockchain went as high as $3.0 billion over the weekend but has since dropped back to around $1.4 billion.

Ethereum founder Vitalik Buterin said he strongly supports a plan that would deliver “coordinated sympathy and relief for the average UST smallholder who got told something dumb about “20% interest rates on the US dollar” by an influencer, personal responsibility and SFYL for the wealthy”.

Meanwhile, questions have been rising about what happened to the Luna Foundation Guard’s (LFG) bitcoin reserves, with $1.2 billion reportedly still unaccounted for. The LFG is a non-profit set up to support the development of the Terra ecosystem and had been building a large bitcoin reserve to help back UST.

Separately, over the weekend a Bored Ape Yacht Club non-fungible token (NFT) worth over $200,000 was mistakenly sold for $200. Some speculated the sale could actually have been for tax evasion/avoidance.

Exchange Flows

According to Glassnode data, last week saw $19.4 billion worth of bitcoin flow into cryptocurrency exchange wallets versus $17.9 billion flow out. The net inflow to exchanges was thus around $1.5 billion worth of bitcoin, which isn’t too surprising given last week’s volatile/bearish conditions.

In times of crypto market stress, it’s not unusual to see investors moving their crypto into their exchange wallets so they can sell.

Last week also saw a net inflow of around $979.5 million ethereum and $3.8 billion USDT (Tether USD) into exchange wallets.

In terms of exchange flows on Sunday, bitcoin saw a net outflow of just under $70 million, ethereum saw a net inflow of just under $50 million and USDT saw a net inflow of just over $70 million.

Crypto Adoption

Major global investment banks Goldman Sachs and Barclays invested in a $70 million funding round for Elwood Technologies, a crypto trading/portfolio management software company, marking a new bet on the longevity of the crypto space.

Meanwhile, reports over the weekend suggest that Japanese bank SIB Holdings will buy a 51% stake in crypto trading platform BITpoint Japan.

Grayscale Investments just listed its first exchange-traded fund (ETF) in Europe. The Future of Finance UCITS ETF will list on the London Stock Exchange, German Börse, and Italian Borsa Italiana and will offer investors exposure to companies including PayPal, Coinbase Global, Block, Robinhood Markets, and Argo Blockchain.

Finally, the CEO of major crypto exchange FTX Sam Bankman-Fried said that he doesn’t think bitcoin has a future as a payments system, but that it does have potential as a store of value.

Regulatory Landscape

The UK government on Monday confirmed that they will regulate stablecoins following the LUNA and UST collapse. They reportedly do not have any problem with stablecoins, so long as they aren’t algorithmic (like UST was).

Reports over the weekend suggest that South Korea is to launch an emergency review of cryptocurrencies in wake of the LUNA and UST crashes.

“32 central banks and 12 financial authorities (44 countries) will meet in El Salvador to discuss financial inclusion, digital economy, banking the unbanked, the #Bitcoin rollout and its benefits in our country”, El Salvador President Nayib Bukele tweeted on Monday. The meeting will take place on Tuesday.

Officials at India’s central bank warned a key parliamentary finance panel that the adoption of crypto in the country could result in the “dollarization” of the Indian economy and reiterated their recommendation for a complete ban. India may also soon ban crypto celebrity endorsements.

Finally, the Securities and Exchange Commission of Nigeria said in a new rulebook published over the weekend that all digital assets represent either an asset such as a debt or equity claim on the issuer, thus by default fall under their regulatory purview.

Cardano (ADA) Leads the Top 10 as the Market Moves on from TerraUSD

Key Insights:

  • It’s a bullish Friday, with Cardano (ADA) leading the top ten out of a hole.
  • Following Thursday’s jitters, Tether (USDT) approaches parity to the dollar, while TerraUSD and Terra (LUNA) fall into the abyss.
  • Cardano (ADA) technical indicators remain bearish but suggest a possible shift in sentiment.

Cardano (ADA) leads the morning change. While Tether (USDT) delivered stablecoin comfort, a bearish start to the week went from bad to worse for TerraUSD (UST) and Terra (LUNA).

The LUNA and UST implosion left the total crypto market cap at a Thursday low of $1,082 billion before support kicked in.

Binance delisted LUNA after a fall through 0.005UST to ‘almost zero,’ with UST floundering at sub-$0.14 levels, up modestly from a current-day low of $0.0437.

Crypto Market Moves on from Terra and Do Kwon Silence

A the time of writing, LUNA was down 99.7% to $0.000028. Any hopes of a rebound faded on news of Binance delisting LUNA and UST this morning.

Adding to the negative sentiment was a silent Do Kwon Twitter account.

On May 11, Do Kwon tweeted,

“Getting close… stay strong, lunatics.”

 

The Co-Founder and CEO of Terra Labs then tweeted a series of announcements on May 11 before going silent.

For investors, Do Kwon’s absence and lack of accountability will be a concern.

Stablecoins Provide Market Comfort Following a Thursday Termor

This morning, Tether (USDT) provided crypto market support, with a move back towards parity with the dollar.

After falling to a Thursday low of $0.9511, USDT currently sits at $0.9978.

Stablecoin Tether provides crypto comfort.
USDTUSD 130522 Daily Chart

By contrast, UST has fallen deeper into the abyss. At the time of writing, UST was down 63.8% to $0.1369. Through the early hours, UST slumped to a day low of $0.0437 before finding support.

Stablecoin TerraUSD continues to slide.
USTUSD 130522 Daily Chart

Despite the ongoing woes of LUNA and UST, the broader crypto market is in rally mode.

ADA and Crypto Top-Ten Support a Broad-Based Crypto Rally

According to CoinMarketCap, Cardano (ADA) leads the charge from the crypto top ten. Over 24-hours, ADA is up 37.7%, with Binance Coin (BNB) up 28.9%.

Dogecoin (DOGE) and Solana (SOL) rallied by 23.6% and by 23.4%, respectively.

Ethereum (ETH) and XRP trailed the front runners, with gains of 14.3% and 18.7%, respectively.

While the crypto market is in rebound mode, regulatory chatter spiked in response to this week’s events.

There are growing calls for the rollout of stablecoin regulations to ensure the UST collapse is not repeated.

For the crypto market, a more rigid stablecoin regulatory environment may be well received. It may boil down to which agency takes responsibility to oversee stablecoins and the crypto market.

As the market licks its wounds from this week’s meltdown, investors will be hoping the current recovery is a sustainable one.

Cardano (ADA) Price Action

At the time of writing, ADA was up 25.0% to $0.5902. A mixed start to the day saw ADA fall to a low of $0.4681 before striking a high of $0.6061.

ADA broke through the First Major Resistance Level at $0.5496.

Cardano (ADA) on a breakout session.
ADAUSD 130522 Daily Chart

Technical Indicators

ADA will need to avoid the First Major Resistance Level and the $0.4711 pivot to target the Second Major Resistance Level at $0.6274.

ADA would need the broader crypto market to support a return to $0.60.

An extended rally would test resistance at $0.70 before any pullback. The Third Major Resistance Level sits at $0.7845.

A fall through the First Major Resistance Level and the pivot would test the First Major Support Level at $0.3932. Barring another extended sell-off, ADA should steer clear of sub-$0.39 levels. The Second Major Support Level sits at $0.3140.

ADA bulls eye a return to $0.70 as mood shifts.
ADAUSD 130522 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. ADA sits below the 50-day EMA, currently at $0.6460. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; ADA negative.

A move through the 50-day EMA would support a run at $0.70. A flattening of the 50-day EMA on the 100-day EMA suggests a shift in sentiment.

ADA 50-day EMA starts to flatten supporting further upside.
ADAUSD 130522 4-Hourly Chart

Your Crypto Brew: Stablecoin Woes, Unfavorable Macro Flows Weigh on Crypto

Key Points

  • Reports were doing the rounds on Thursday that Grayscale has met with the US SEC privately.
  • The crypto market decline has continued on Thursday as stablecoin woes and macro worries weigh on sentiment.
  • Bitcoin (BTC) hit its lowest level since December 2020, while stablecoin troubles seem to have spread to USDT.

Today’s daily Crypto Brew takes a deep dive into the latest news, themes, and developments driving crypto markets.

The total market capitalization of cryptocurrencies continued to fall on Thursday, at one point falling below $1.1 trillion for the first time since February 2021, but more recently stabilizing above $1.2 trillion. That still leaves losses at about 3% (over $40 billion) on the day and close to 21% (around $330 billion) on the week, at the time of writing.

According to CoinGlass, cryptocurrency future positions worth $1.26 billion were liquidated in the last 24 hours. Most of these liquidations continue to be of long positions as the crypto market declines.

Long liquidations on Wednesday were just shy of $700 million, not far below Monday’s more than three-month high of nearly $800 million.

State of the market

Cryptocurrency markets have continued to reel on Thursday as the collapse of Terra’s stablecoin UST triggers contagion across other stablecoin markets, with Tether’s USDT now looking to be in trouble. Stablecoin woes come against a still very unfavorable macro backdrop for the crypto market, with US stocks down sharply in wake of hotter than expected US inflation data.

April US Consumer Price Inflation (CPI) data released on Wednesday revealed a smaller than expected drop in the YoY rate of headline inflation (to 8.3% from 8.5% in March rather than the expected drop to 8.1%). Meanwhile, core price pressures were also hotter than expected, with the MoM jump in core prices exceeding expectations at 0.6% versus an expected rise to 0.4% from 0.3% in March.

Heading into the data release, traders had been hoping that signs of easing price pressures would facilitate a winding down of hawkish Fed bets. This could have given stocks and crypto a short-term boost.

But as it played out, the opposite happened and the Fed will look upon the latest CPI data with concern.

The latest data likely reaffirms their conviction to tighten monetary policy “expeditiously” back to so-called “neutral” (rates around 2.5%) by the end of the year and perhaps much higher in 2023, despite a slowing global growth impulse, which has been exacerbated in recent weeks by lockdowns in China and the Russo-Ukraine war.

It was thus not surprising to see US equities extend their recent run of losses on Wednesday, led unsurprisingly by the high-interest rate-allergic tech sector. The Nasdaq 100, with which the cryptocurrency market has had a close correlation in recent months fell 3.0% to below the 12,000 for the first time since November 2020.

Nasdaq 100 index future suggests the index is set to open Thursday’s session a further more than 1.0% lower in the 11,800s, meaning it is now down roughly 30% versus its record highs back in November 2021.

Bitcoin

Bitcoin was last trading down about 2% in the $28,500 area, having recovered from an earlier dip as lower as the mid-$25,000s, giving it a market cap of just over $540 billion, near its lowest since early 2021.

On the week, BTC/USD is down about 16.5% and, at current levels, the cryptocurrency trades lower by about 60% versus its all-time high printed last November just above $69,000.

The percentage of bitcoin addresses in-profit dropped to a two-year low of 60.4% on Thursday, Glassnode data showed.

Alternative.me’s Fear & Greed Index for BTC showed that markets remain in a state of extreme fear with a score of 12. The index hit 10 earlier in the week, not far above the all-time worst score of 5 hit back in August 2019.

fear and greed index
Source: Alternative.me

Altcoins

Turning to etheruem (ETH), ETH/USD was last trading lower by close to 5.5% in the mid-$1,900s. The cryptocurrency has recovered from an earlier crash as low as the $1,700s for the first time since June 2021, where it tested a triple bottom in the $1,750 area from the middle quarters of 2021.

At current levels just under $2,000, the market cap of the world’s second-largest cryptocurrency stands at just above $230 billion and, like bitcoin, is around 60% down versus its record highs from last November.

Other notable layer-1 blockchain tokens in the top ten cryptocurrencies by market cap took a beating on Thursday.

  • Binance’s BNB is down around 10.4% in the last 24 hours, according to CoinMarketCap, at the time of writing.
  • Ripple’s XRP last down about 24% in the last 24 hours.
  • Cardano’s ADA is around 25% lower in the last 24 hours, whilst Solana’s SOL has shed about 28% of its value over the same time period.
  • Popular meme tokens Dogecoin (DOGE) and Shiba Inu (SHIB) were both down in the region of 30% over the last 24 hours. DOGE’s market cap fell under $10 billion for the first time since April 2021.
  • LUNA, the native token on the Terra blockchain, was last changing hands on exchanges for under 5 cents, meaning it has lost about 99.9% of its value from its record highs printed at the beginning of April near $120 per token since the de-pegging of Terra’s flagship stablecoin UST.

Stablecoins

Stablecoin trouble that originated over the weekend just gone with the de-pegging and subsequent collapse of Terra’s algorithmic stablecoin UST (which has resulted in the collapse of the Terra blockchain’s native LUNA token) has spread to Tether’s stablecoin USDT.

USDT/USD went as low as $0.94 on Thursday, according to Coinbase data cited on TradingView. It now trades closer to $0.99 again.

USDT is allegedly backed 1:1 with actual US dollars of liquid equivalents (short-term US debt instruments), according to Tether. But Tether has come under scrutiny and criticism in the past amid claims that USDT isn’t actually backed 1:1.

UST, meanwhile, continues to trade like an illiquid altcoin and continues to swing all over the place. It was last trading around $0.50, despite Terraform Labs announcing further measures to save the peg on Twitter.

Citadel Securities, BlackRock, and Gemini have all criticized social media-based conspiracy theories alleging that they played some part in the UST collapse.

For now, USD Coin (USDC), Binance USD (BUSD,) and Dai (DAI), the next major USD stablecoins, all continue to trade comfortably in line with their 1:1 pegs to the US dollar.

Flows, deals, and transactions

According to Glassnode, $3.3 billion in bitcoin was sent to exchange wallets on Wednesday versus $3.2 billion out, amounting to a net inflow of around $49.9 million.

That coincided with the 7-day moving average of Exchange Inflow Volume reaching an 11-month high of 3,372.517 bitcoins (per day) and bitcoin Balance on Exchanges reaching a 1-month high of 2,542,255.466 bitcoins on Thursday, according to Glassnode.

Traders moving bitcoin to exchanges in a higher number is usually a sign of an elevated intent to sell in the market.

Meanwhile, crypto investors reportedly moved $1.6 billion into exchanges on Wednesday versus $1.6 billion out, resulting in a net inflow to exchanges of just over $30 million.

DeFi tokens

According to CoinGecko, the market cap of DeFi tokens fell to $48.6 billion on Thursday. That marks a more than 57.5% collapse in just seven days and is mostly due to the demise of LUNA, the former largest of the DeFi tokens.

The total value locked (TVL) on all DeFi platforms continued its recent collapse and was last at just over $100 billion, down over 25% in the last 24 hours alone, data on DeFi Llama showed. Much of the recent collapse has been driven by the downfall of the Terra ecosystem, which now has a TVL of only about $2.0 billion versus close to $22.0 billion just one week ago.

  • Of the largest ten DeFi tokens, Lido Staked ether’s STETH (around -20% in the last 24 hours)
  • Chainlink’s LINK (around -25%)
  • Uniswap’s UNI (around -23%)
  • PankcakeSwap’s CAKE (around -27%)
  • Maker’s MKR (around -30%)

They are all performing poorly in tandem with the broader crypto market drop, at the time of writing.

DeFi stablecoins including Dai’s DAI, Frax’s FRAX, and Magic Internet Money’s MIM are all remaining broadly stable close to $1.0, as is their intended purpose.

Crypto regulation landscape

Australia’s first-ever bitcoin and ethereum Exchange Traded Funds (ETF) went live on Thursday, launched by ETF Securities and Cosmos Asset Management. Trading surpassed A$ 1 million in the first two hours, which market commentators said marked a strong start given broader market turmoil.

“ETF Securities and Cosmos Asset Management’s cryptocurrency launch may go down in history books and put Australia’s ETF market in the running,” analysts at Bloomberg Intelligence wrote. Australia’s crypto market could hit $1 billion by the end of the year, with the country potentially acting as the Asia-Pacific’s gateway to crypto ETFs, they noted.

With Australia joining ranks with Canada as one of the few major developed economies where cryptocurrency ETFs have received approval, pressure on the US Securities & Exchange Commission to allow a US-based crypto ETF builds further.

Reports were doing the rounds on Thursday that Grayscale has met with the US SEC privately as it pushes for regulator approval of its plan to convert its Bitcoin Trust into an ETF.

Speaking of the SEC, two former SEC lawyers told The Block on Wednesday that the US regulator is likely already investigating what happened to UST over the weekend.

The SEC had already taken an interest in the Terra ecosystem, one of the lawyers said, noting the Mirror protocol that enabled crypto investors to buy digital assets whose value remains closely linked to traditional financial assets, though remains outside the regulatory purview.

Elsewhere, the High People’s Court in Shanghai declared bitcoin to be a legal form of virtual property that will be protected under Chinese law. This is despite the fact that cryptocurrency trading is banned in China.

Crypto Market Gets Crushed With Tether (USDT) Giving Up Dollar Parity

Key Insights:

  • Bitcoin (BTC) is the best of the worst today, falling by 10% to sub-$28,000 levels.
  • The rest of the crypto top ten are down by more than 20% over the last 24-hours.
  • Market angst over stablecoin pegs to the dollar weighed, with Tether (USDT) the latest to lose its peg.

There is no respite for the crypto market as stablecoin woes continue to hit investor sentiment. On the news front, there was little to provide investors with a shift in focus, with the crypto top ten hitting new 2022 lows. Tether (USDT) becomes the latest stablecoin to give up its peg against the dollar.

The crypto market has been so seismic that stablecoins are now a feature of the crypto top ten by market cap.

Bitcoin (BTC) is down 10% to $27,731, at the time of writing. Bitcoin last sat at sub-$28,000 in December 2020.

Stablecoins send the crypto market into a tailspin

This week, the TerraUSD (UST) peg with the US dollar imploded, with UST touching a Wednesday all-time low of $0.1977 before a partial recovery.

The knock-on effects of the de-peg are far-reaching, with Terra LUNA tumbling to a Wednesday low of $0.58. It is possibly the first time a top-ten crypto faces the prospect of “almost zero.”

Crypto market conditions have not improved this morning, with stablecoins still the area of market attention.

Today, USDT grabbed the headlines. Tether gave up parity with the dollar, falling to $0.986 levels.

In the wake of UST’s visit to sub-$0.20, market fear of a Tether plummet has investors scrambling.

Over the last 24 hours, the total crypto market cap fell by $268 billion to $1,116 billion before support kicked in.

With stablecoins drawing market attention, the de-pegging of TerraUSD has also drawn the attention of lawmakers.

The threat of a regulatory overhaul has added to the market angst.

Crypto top-ten are among the biggest losers over 24 hours

While bitcoin is down by 10% over 24 hours, losses are far more significant elsewhere.

Solana (SOL) and Cardano (ADA) are down 31% and 27%, respectively, at the time of writing.

Dogecoin (DOGE) and XRP were not far behind, with losses of 26% and 26%, respectively.

Ethereum (ETH) and Binance Coin (BNB) saw relatively modest losses. At the time of writing, ether was down 19%, with Binance Coin also down 19%.

Bitcoin sees sub-$28,000, with stablecoin Tether weighing.
Top10 Cryptos by market cap.

For those hopeful of a Terra LUNA revival, LUNA was down 97.1% over 24 hours. Once sitting in the top ten by market cap, LUNA ranked at #79 this morning, with a market cap of $556 million.

For the remainder of today, there remains very little for investors to consider. A re-pegging of the market’s major stablecoins will be a must to restore confidence.

This isn’t the first time stablecoins have lost their pegs against the dollar. UST’s demise and the issues behind restoring the peg remain a concern.

The fact that Tether has given up parity this morning adds fuel to the fire. On Wednesday, the markets were considering the end of algo stablecoins. A Tether collapse would have altogether different connotations for crypto market stability.

Bitcoin (BTC) Avoids Heavy Losses Amidst USDTerra Driven Meltdown

Key Insights:

  • Bitcoin (BTC) fell by a relatively modest 6.44% on Wednesday as the broader market took a hit.
  • TerraUSD (UST) and Terra (LUNA) dragged the majors into the deep red, with UST’s de-pegging raising the prospects of a regulatory overhaul.
  • Bitcoin (BTC) technical indicators flash red. This morning, bitcoin sits well below the 50-day EMA.

Bitcoin (BTC) fell by 6.44% on Wednesday as TerraUSD and the NASDAQ 100 influenced. Reversing a 3.11% gain from Tuesday, bitcoin ended the day at $29,017.

A choppy session saw bitcoin find early support before succumbing to market forces. Bitcoin hit a late morning intraday high of $32,136 before sliding to a late day low of $28,087.

Market sentiment toward TerraUSD (UST) and Terra (LUNA), coupled with a NASDAQ 100 sell-off, left bitcoin deep in the red.

Bitcoin’s loss was modest relative to the broader crypto market that struggled throughout the day.

Investors Turn to Stablecoins Amidst USDTerra Fueled Meltdown

On CoinMarketCap, stablecoins became a feature of the top 10 cryptos, with Tether (USDT) and USD Coin (USDC) sitting behind bitcoin and Ethereum (ETH). Binance USD (BUSD) moved into the number 8 spot, leaving little room for the altcoins.

Binance (BNB), Ripple (XRP), Cardano (ADA), Solana (SOL), and Dogecoin (DOGE) formed the remainder of the top ten, with Terra LUNA tumbling to the number 37 spot.

UST faired better, recovering to $0.78 levels to rank at #11.

Crypto Market Sell-off Sees $300 Billion Market Cap Wipeout

Performance-wise, the losses were unprecedented. LUNA ended the day with a 94% loss.

Terra LUNA slumps by 94%.
LUNAUSD 120522 Daily Chart.

Anchor Protocol (ANC) slumped by 33%, with Avalanche (AVAX) down 32%. Things were no better for SOL (-24%) and XRP (-19%), with ADA (-15%), BNB (-16%), and ETH (-11%) also seeing heavily losses.

The total crypto market cap ended the day at $1,264 billion, down $149 billion and $290 billion for the current week.

Bitcoin Correlation with NASDAQ 100 Adds to Crypto Woes

On Wednesday, the NASDAQ tumbled by 3.18% as investors responded to April inflation figures from the US. While softer than in March, the numbers were strong enough to support a more aggressive Fed rate path trajectory.

In April, the annual rate of inflation softened from 8.3% to 8.0% versus a forecasted 7.7%.

Both bitcoin and the NASDAQ succumbed to the numbers after an initial move northward.

BTC-NASDAQ Correlation.
BTC-NASDAQ Daily Chart.

Bitcoin Fear & Greed Index Slides to

Today, the Fear and Greed Index held steady at 12/100. The lack of movement came despite the bitcoin and broad-based crypto sell-off.

This morning’s value remained above the most recent low of 8/100 on March 14, 2020. On Wednesday, the Index had also avoided a decline despite the market angst over TerraUSD and LUNA.

For bitcoin investors, the “Extreme Fear” zone relays investor anxiety over the threat of another sell-off. Further fallout from the TerraUSD and LUNA events could bring sub-10/100 into play.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.39% to $29,130.

The NASDAQ 100 and TerraUSD leave BTC in the red.
BTCUSD 120522 Daily Chart.

Technical Indicators

BTC will need to move through the $29,749 pivot to target the First Major Resistance Level at $31,401 and resistance at $31,500.

BTC would need the broader crypto market to support a return to $31,000.

An extended rally would test the Second Major Resistance Level at $33,794 and resistance at $34,500. The Third Major Resistance Level sits at $37,845.

Failure to move through the pivot would test the First Major Support Level at $27,358. Barring another extended sell-off, BTC should steer clear of sub-$25,000 levels. The Second Major Support Level at $25,701 should limit the downside.

A Bitcoin return to $30,000 to shift sentiment.
BTCUSD 120522 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 $33,777. 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 $35,500.

Signals are bearish, with BTC below the 50-day EMA.
BTCUSD 120522 4 Hourly Chart.

Gucci Goes Crypto with US Stores to Start Accepting Crypto Payments

Key Insights:

  • On Wednesday, Gucci announces plans to begin accepting crypto in US stores later this month.
  • Gucci has been a trailblazer in the digital asset and virtual space.
  • Five US stores will accept payments in more than 10 cryptocurrencies, including DOGE and SHIB.

Gucci and the fashion industry have been long-standing advocates of digital assets and virtuality.

Fashion brands have ramped up Web3 activity in 2022, with some big names filing Metaverse-related trademark applications.

While some fashion houses play catch up, Gucci has been a Web3 trailblazer. News of Gucci making a move to begin accepting crypto payments aligns with the brand’s Web3 position.

Gucci to Launch Polit Program to Accept Crypto Payments in US Stores

On Wednesday, news hit the wires of Gucci launching a pilot program to begin accepting in-store crypto payments.

According to Vogue Business, Gucci will begin the pilot scheme at the end of May. Stores will share QR code links to shoppers via email to enable payments from crypto wallets.

Stores will accept crypto payments in more than 10 cryptos, including Bitcoin (BTC), Bitcoin Cash (BCH), Dogecoin (DOGE), Ethereum (ETH), Litecoin (LTC), Shiba Inu Coin (SHIB), Wrapped Bitcoin (WBTC), and five USD pegged stablecoins.

Five stores will reportedly form part of the pilot scheme, these being Gucci stores on Wooster Street (New York), Rodeo Drive (Los Angeles), Miami Design District (Miami), Phipps Plaza (Atlanta), and The Shops at Crystals (Las Vegas).

Gucci plans to extend the pilot scheme to all North American stores by the summer.

It is not Gucci’s first foray into the virtual space. In February, Gucci purchased LAND in The Sandbox (SAND). Based on Gucci Vault, attendees can buy and use fashion items in the Metaverse.

On Gucci Vault, the fashion house also launched a Discord and the Gucci Grail, and the SuperGucci NFT collections, available on OpenSea.

The relationship with Web3 started much sooner, however. In 2021, Gucci and Roblox hosted the Gucci Garden, a virtual version of a real-world installation in Italy. Gucci Garden consisted of themed rooms in commemoration of Gucci’s centenary.

For the crypto market, the increased adoption of Web3 continues to support cryptos, including SAND.

The Sandbox Price Action

At the time of writing, SAND was down 0.86% to $2.41. A bearish morning session saw SAND fall to an early morning low of $2.40.

Gucci and other big names deliver SAND price support
A move through to $2.5 would give the bulls a look at $3.0 near-term.

Technical Indicators

SAND will need to avoid the day’s $2.34 pivot to target the First Major Resistance Level at $2.55. SAND would need broader market support to return to $2.50.

In the event of an extended rally, SAND could test the Second Major Resistance Level at $2.67 and resistance at $2.70. The Third Major Resistance Level sits at $3.00.

A fall through the pivot would bring the First Major Support Level at $2.22 into play. Barring an extended sell-off, SAND should avoid sub-$2.20. The Second Major Support Level sits at $2.00.

SANDUSD 050522 Hourly
Steering clear of the pivot would support another bullish session.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SAND sits below the 100-day EMA, currently at $2.47. This morning, we saw the 50-day EMA narrow to the 100-day EMA, delivering support. The 100-day EMA flattened on the 200-day EMA; SAND neutral.

A move through the 100-day EMA would support a return to $2.60.

SANDUSD 050522 4-Hourly
A move through the 100-day EMA would bring $3.0 levels into play.

APE Joins DOGE to Take Cues From Crypto Influencer Elon Musk

Key Insights:

  • On Wednesday, Elon Musk briefly changed his Twitter profile image to a Bored Ape Yacht Club image, driving APECoin (APE) into a frenzy.
  • Musk has a similar impact on Dogecoin (DOGE) and Shiba Inu Coin (SHIB), and even Bitcoin (BTC).
  • The Elon Musk influence brings into question the ethos of decentralization.

Elon Musk, the world’s richest man, is no stranger to cryptocurrencies. In January 2021, the Tesla (TSLA) CEO showed his power over the crypto market by simply changing his Twitter account description to #bitcoin.

On Jan. 29, the Bitcoin (BTC) response was evident, surging from a day low of $31,996 to a day high of $38,632 before easing back.

Elon Musk Hits BTC via Twitter
Hourly chart shows the influence of Elon Musk.

In February of last year, Musk delivered further BTC price action with news of Tesla acquiring $1.5 billion in BTC. Once more, the Musk influence was evident, with BTC responding to the news.

Tesla news delivers BTC spike
BTC spikes on news of Tesla purchasing $1.5bn in BTC.

Since then, Musk has continued to show his influence on the crypto market, with DOGE, SHIB, and now APE at the mercy of Musk’s Twitter account.

Musk Twitter account causes APECoin frenzy

On Wednesday, Elon Musk flexed his crypto muscles via his heavily influential Twitter account. By simply changing his Twitter profile picture to a Bored Ape Yacht Club NFT image, APECoin surged from $14.51 to a day high of $17.64, before easing back. APE holders enjoyed a 21% breakout within a 45-minute time span.

Elon Musk fueled price action
Musk Twitter account hits APE

APE joined a growing list of cryptocurrencies that have fallen under Elon Musk’s spell. Dogecoin (DOGE) and Shiba Inu Coin (SHIB) have long been under the influence of Elon Musk.

APE joins DOGE as an Elon Musk dependent

Over the last 12-months, Musk’s influence on DOGE and SHIB has been unquestionable. Last month alone, DOGE investors faced heightened volatility as the global financial markets responded to Musk’s Twitter purchase.

On April 5 and April 25, two spikes were evidence of the Musk Spell. The April 5 breakout came in response to news of Musk taking a $3 billion stake in Twitter.

The April 25 breakout came in response to renewed talk of Musk buying Twitter, which briefly took DOGE into the crypto top ten by market cap.

Elon Musk and Twitter News
Price spikes driven by Musk news updates.

Musk brings into question the ethos of decentralization

Since Tesla’s purchase of $1.5 billion in BTC, questions have surfaced over the influence of one person on the crypto market.

There has yet to be any regulatory scrutiny on the Musk influence despite the US Securities and Exchange Commission’s stance on cryptocurrencies.

For the crypto market, the Musk influence raises questions over the ethos of decentralization. The impact of a Musk Tweet on APE, BTC, DOGE, and even SHIB removes the concept of decentralization.

While crypto investors going long may appreciate the Musk influence, investors shorting APE, DOGE, and SHIB walk a treacherous path, with Musk able to create a price spike with a simple tweet.

Bitcoin Lies at the Bottom

Bitcoin and Cryptos Price Action

Bitcoin rose 0.6% on Monday, ending the day near $38.4K, cruising at arm’s length from the $38K level for the past five days. Ethereum has settled near $2800, losing 0.5% over the past 24 hours. Other altcoins in the top 10 have shown mixed dynamics, ranging from a decline of 1.9% (Solana) to a rise of 1.5% (Terra). Total crypto market capitalisation, according to CoinMarketCap, declined 0.7% overnight to $1.74 trillion.

Bitcoin’s dominance index added 0.2% to 42.1%. The cryptocurrency Fear and Greed Index was down 1 point to 27 by Tuesday and remains in “fear” mode. Since late March, the bears have been intensifying from $39K, forming a sequence of lower highs. At the same time, the basis in the form of support at $38K generally remains untouched.

Fundamentals

The crypto market seems to have laid at the bottom, missing the momentum of the US indices growth at the close of trading, indicating a high supply of coins for sale and reluctance to take active actions in anticipation of the Fed’s decision on Wednesday. But there may be another lower bottom if the FOMC reaction to the Fed leads to a stock market sell-off.

Chart Description automatically generated

Crypto News

According to Santiment, large investors have been aggressively buying Ethereum and Binance Coin over the past two weeks, which could signify an impending trend reversal. JPMorgan Chase CEO Jamie Dimon said that cryptocurrencies offer advantages over fiat currencies in some respects, such as fast transaction times for payments. However, Dimon still recommends caution when investing in crypto-assets.

According to Coin ATM Radar, the global bitcoin ATM installation rate declined for the fourth consecutive month in April. Meanwhile, Solana’s blockchain went down for seven hours to carry out transactions due to a surge in operations that the network could not cope with. Billionaire Mark Cuban suggested using DOGE to fight spam on Twitter, which Elon Musk recently bought out.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

10 Best Altcoin Performers in April: APE, KNC, GMT, XDC, XMR, DOGE, ENS, DAO, DAR, BTRST

April turned out to be an ugly month for altcoins and the broader cryptocurrency market in general. EXANTE’s XAI index of popular altcoins fell 21.7%, last month, amid a broader 18.3% decline in the total market capitalization of the crypto market to around $1.7 billion.

Fears about central bank monetary policy tightening to tame inflation saw major developed market government bond yields surge, raising the opportunity cost of holding non-yielding assets such as cryptocurrencies.

Meanwhile, surging bond yields amid central bank tightening fears, as well as broader concerns about inflation, and lockdowns in China, weighed heavily on risk assets, with global equities tumbling. This, in turn, weighed heavily on the still very risk-sensitive cryptocurrency market.

But a few altcoins were, nonetheless, able to buck the bearish trend. Here is a list of ten of the most notable outperformers.

1. ApeCoin

APE, the governance and utility token of Yuga Lab’s APE Ecosystem, surged in April in the lead-up to the launch of the “Otherside” metaverse by Yuga Labs on April 30. ApeCoin will function as the currency that powers the new metaverse’s digital economy.

APE/USD rallied 57% from under $13 per token, to end the month near $20 per token.

apecoin
Source: CoinMarketCap

However, it’s been an ugly start to the month for ApeCoin, with the token already down over 20% and back to near $15 per token.

Crypto analysts said that traders had been aggressively unwinding long positions in the cryptocurrency, after Yuga Labs announced the details of how it would sell digital land in the Otherside metaverse.

Digital land non-fungible tokens (NFTs) would cost a flat 305 APE (around $4,600, at the time of writing) as opposed to being sold off in a dutch auction, and traders said this reduced the need to hold ApeCoin as a result.

While APE/USD might be in for some short-term pain, investors will be closely monitoring the success of the new metaverse. Should the user numbers look promising over the next few weeks, investors may want to buy the dip APE/USD.

APE currently has a market cap of $4.38 billion.

2. Kyber Network’s KNC

Multichain liquidity aggregator Kyber Network’s governance and utility token KNC, surged nearly 50% in April, from lows of under $3 per token, to end the month near $5.

knc chart
Source: CoinMarketCap

Crypto analysts cited continued growth in total trade value locked (TVL) within Kyber Network’s ecosystem since the start of the year as powering much of the token’s recent upside.

Whilst April was strong, the KNC bulls will be disappointed that just two days into the month of May, KNC/USD has already dropped over 8% and looks likely to soon test the $4 level.

KNC’s market cap is currently just under $750 million.

3. STEPN’s GMT

GMT, the native governance token of popular and rapidly growing move-to-earn platform STEPN — where participants can by NFT trainers and then have their movement tracked to earn crypto — gained more than 40% in April.

gmt chart
Source: CoinMarketCap

STEPN recorded massive growth in its Daily Active User (DAU) numbers, last month, solidifying its status as the most popular name in the move-to-earn genre. It also managed to land an NFT sneaker collaboration with ASICS.

GMT is now listed on most major cryptocurrency exchanges. GMT investors will remain focused on whether DAU numbers continue to trend in a positive direction. If so, it may be a matter of time before GMT/USD rallies from current levels just under $3.50 per token back to record highs printed last week just above $4.50.

GMT’s market cap is currently just over $2 billion.

4. XDC Network’s XDC

XDC, the native coin that powers XDC Network (also known as the XinFin Network), posted a respectable slightly more than 8% gain in April. That saw the price per token rise from about $0.057 to around $0.062.

xdc chart
Source: CoinMarketCap

Crypto market commentators attributed the coin’s outperformance relative to the rest of the altcoin market to the launch of a new NFT marketplace using the XDC Network’s blockchain technology by a company called BlocksWorkz.

XDC currently has a market cap of roughly $750 million.

5. Monero’s XMR

More of a relative outperformer rather than an outright outperformer, XMR, the native token of the privacy-focused Monero blockchain, was pretty much flat in April, remaining well supported to the north of the $200 per token mark.

xmr chart
Source: CoinMarketCap

In April, Monero’s developers announced a major upgrade to the network which will come into effect in July, helping XMR weather recent cryptocurrency market turbulence.

XMR currently has a market cap of around $3.8 billion.

6. Dogecoin

As with Monero’s XMR, Dogecoin (DOGE) was more of a relative outperformer rather than an outright outperformer in April. The Shiba Inu-inspired memecoin fell just under 8% in April versus the more than 20% drop in the broader altcoin market.

doge chart
Source: CoinMarketCap

Dogecoin was supported intermittently throughout the month by speculation that, given Elon Musk’s impending takeover of Twitter, the cryptocurrency might be used as a form of payment, or enjoy some other type of promotion on the social media platform.

DOGE/USD at one point rallied as high as $0.18, but has since receded to around the $0.13 mark.

DOGE has a market cap of around $17.3 billion.

Moving out of the top 100 cryptocurrencies by market cap, notable outperformers include the following.

7. Ethereum Name Service’s ENS

ENS, the native token of Ethereum Name Service’s distributed, open, and extensible naming system, which is based on the Ethereum (ETH) blockchain, rallied 13.2% in April, from lows under $15 per token to above $20.

ens chart
Source: CoinMarketCap

Since the start of May, the token has already rallied a furthermore than 14% to the mid-$23s. But the token continues to trade well below the peaks it achieved last November, shortly after its launch, above the $80 mark. Traders may well view the most recent rebound as nothing more than a dead cat bounce.

ENS currently has a market cap of roughly $480 million.

8. DAO Maker’s DAO

DAO, the native token that power’s the DAO Maker platform, surged nearly 20% in April, from under $2.50 per token to current levels above $3.

dao chart
Source: CoinMarketCap

DAO currently has a market cap of just over $210 million.

9. Mines of Dalarnia’s DAR

DAR, the native cryptocurrency used in the Mines of Dalarnia action/adventure game, rallied just over 10% in April, from just under $1.03 to just above $1.13 per token. That’s an impressive MoM gain, but it masks a spike as high as $2.48 and back again.

dar chart
Source: CoinMarketCap

But the token has started May on the front foot and is already about 8% higher and trading at about $1.20 per token.

DAR currently has a market cap of just under $230 million.

10. Braintrust’s BTRST

BTRST, the native token of the decentralized employer/employee matching service Braintrust, saw a roughly 5% rise in April, making it one of the best performing altcoins of the month.

braintrust
Source: CoinMarketCap

BTRST rose from just under $3.50 per token, to close out the month at around $3.65 per token, though has already built on this positive momentum, having already gained a further 4% in May, to trade at around $3.80.

BTRST currently has a market cap of close to $340 million.

BTC and ETH Face Uphill Task, TRX Could Extend Rally

Key Insights:

  • BTC is attempting a recovery wave but faces a hurdle near $39,150.
  • Ether (ETH) is trading well below $2,900.
  • TRX has surged over 15% and may rally further if it clears $0.0720.

Bitcoin (BTC)

After a sharp decline, the bitcoin price found support near the $37,500 zone. A base was formed and the price started an upside correction above the $38,000 level.

The price was able to recover above the $38,500 resistance and the 21 simple moving average (H1). It is now facing resistance near the $39,150 level or the 50% Fib retracement level of the downward move from the $40,400 swing zone to the $38,500 region.

Bitcoin Hourly Chart
BTC Chart By FXEmpire

The next major resistance sits near $39,500 and a connecting bearish trend line on the hourly chart. A close above $39,150 and $39,500 is a must for a steady upward move. If not, the price might resume its decline below $38,000.

Ethereum (ETH)

ETH also followed a similar pattern, after it declined towards the $2,720 level. The price started a recovery wave above the $2,750 level and the 21 simple moving average (H1).

The price even climbed above the $2,800 resistance, but the bears were active near $2,865. Ether price is now moving lower and trading below $2,820. There is also a key bearish trend line with resistance near $2,870 on the hourly chart.

Ether ETH Hourly Chart
ETH Chart by FXEmpire

If ether price stays below $2,865 and $2,870, it could resume its decline. The next major support sits near the $2,720 level.

Tron (TRX)

TRX formed a strong base above the $0.0575 level. As a result, there was a bullish reaction above the $0.0650 resistance zone.

The price climbed above the $0.0680 resistance and the 21-day simple moving average. It even moved above the 50% Fib retracement level of the downward move from the $0.080 swing zone to the $0.0575 low.

Tron TRX Daily Chart
TRX Chart by FXEmpire

It is now facing a major resistance near the $0.0720 zone a bearish trend line on the daily chart. If there is a clear move and close above $0.0720, TRX could extend the rally.

The next key resistance on the upside may perhaps be near $0.080 or $0.0850. If there is no upside break, the price could revisit the $0.0620 support zone.

ADA, BNB, and DOT price

Cardano (ADA) is still struggling below the $0.800 resistance zone. It is moving lower and there is a risk of a move towards the $0.750 level.

Binance Coin (BNB) attempted a fresh increase above the $392 resistance but failed. It is now trading below $390 and might even test $382.

Polkadot (DOT) declined heavily below the $16.20 and $15.50 support levels. If the bears remain active, there is a risk of a move towards the $14.00 level.

A few trending coins are LUNA, SAND, and RUNE. Out of these, LUNA gained pace and recovered above the $84.00 level.

Key Support Level Flipped to Resistance for Bitcoin

Bitcoin Technical Analysis

The 600-day simple moving average which had been acting as support for Bitcoin for around 100 days may be flipped into resistance today if we get a close below it on the daily charts.

Bitcoin daiily chart

At time of writing (4:35 PM ET) the bears and bulls are actively defending and attacking this price zone of the 600-day SMA at $40,019. The current pricing on Coinbase is $40,018 and has been shifting to a few dollars above to a few dollars below the 600-day every 10 to 15 seconds signaling very fast paced market conditions.

The ERC-20coin That Has the Blockchain That’s Going Bananas – Apecoin

Meanwhile Apecoin continues to gain value at a rate far greater than any other coin. This exponential growth will of course end at some point, however taking into consideration that the very young crypto just made new all-time highs last evening it seems probable that we will see more swift upside price action and likely reach the $30 per coin status before a correction ensues.

Apecoin has a market value of roughly $24 per coin at time of writing, and although I was and remain skeptical of its ability to have a lasting presence, I have been flowing its price very closely since launching at the end of March. Based on its ability to gain value consistently at a much higher rate than all other coins, as well as limiting losses to a minimum down day, The momentum is reminiscent of Dodge during the week before Musk joined SNL and it ran from $0.24 at the end of April 2021 up to around $0.69 on May 7th 2021.

Even the author of this piece was amazed at the additional similarities between Dodge and Apecoin that were revealed to him once he (I) made an overlapping line chart for comparison. Both coins seem to have the same slope of their ascents, but they both rallied at the exact same time, only one year apart.

Suppose Ape Coin delivers on half of the announced projects, including a series of full-length movies with an unknown “Hollywood” director, the launch of their long-awaited metaverse, and other web three functions and products yet to be fully detailed. In that case, Apecoin has the potential to possibly match the growth that Dodge experienced this time last year.

From March 17th to April 28th, Dodge had grown by 5x. That is the time frame that Apecoin has existed and so far, it has grown by close to 2x in value. Dodge went on to more than 10x by early May so if Ape does follow the same trend, it would reach $100 in the next few weeks.

I am not making that call, but it would not surprise me when I’ve seen coins with less promise go parabolic once they gained a cult following. Ape coin and the Bored Ape Yacht Club (BAYC) certainly have that sort of a devoted army of loyal followers, so I think $30 in the next week is an extremely conservative estimate.

Most of us know how that turned out for Dodge with the coin plummeting the same night the SNL episode aired. Dodge has yet to return to those all-time highs or even close to the heroic status that made it a household name, yet it remains the 11th largest coin by market cap currently trading around $0.13.

For anyone interested in viewing more articles on Bitcoin, simply click this link.

Bitcoin, Ethereum, Dogecoin Become Eligible As Form of Rent Payment

Key Insights:

  • Jamestown has partnered with BitPay to enable crypto as a payment option for its tenants.
  • Cryptocurrencies accepted for the same include assets ranging from Bitcoin to stablecoins.
  • The crypto market itself has been losing money over the last few days.

The adoption of cryptocurrencies for facilitating payments across stores and merchants was the first step in making these digital assets a part of our regular life.

But thanks to the expanding use cases, including tax payments and payments for government services, and now rent payments, crypto will integrate itself into everyone’s life sooner than expected.

Jamestown To Accept Crypto

In an announcement today, the design-focused real estate investment and management firm Jamestown stated that it will now be accepting rent payments from its tenants in the form of cryptocurrencies.

To facilitate the same, the firm partnered with BitPay, which will act as an intermediary exchange.

Stating the reason behind enabling this provision for their tenants, the President of Jamestown, Michael Phillips, said,

“Blockchain technology and the digital assets it enables, like cryptocurrencies and non-fungible tokens, are key components to the evolution of real estate. Allowing for cryptocurrency payments is part of our commitment to innovation and larger digital asset strategy to optimize and maximize our physical real estate through technology and virtual integrations.”

Since Jamestown will not be receiving or holding cryptocurrencies directly, BitPay will convert the cryptocurrencies received from tenants into fiat.

The cryptocurrencies acceptable for the rent payments initially include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Wrapped Bitcoin (WBTC), Dogecoin (DOGE), Litecoin (LTC), and five USD-pegged stablecoins (GUSD, USDC, USDP, DAI, and BUSD).

Jamestown will be beginning by providing these services to tenants of its real estate assets throughout the United States of America. Eventually, they will also expand this service to their assets in Europe.

Would People Opt for It?

Given the state of the market, it is pretty uncertain if people would be willing to opt for paying in crypto. This could be because the market’s volatility is wildly unpredictable and can harm anyone’s holdings within a matter of hours.

For example, any tenant who purchases crypto to pay their rent the next could potentially lose their money within those 24 hours since it has happened in the past.

An instance of the same can be found in the red candle of April 26 when within 24 hours, Bitcoin, along with most of the other altcoins, lost more than 5% of its value, some even touching 12%.

Bitcoin’s price in the last few days has been very uncertain

Depreciation as such is concerning and could also keep people at bay from taking any risks.

Bitcoin and ETH Remains At Risk, ApeCoin Rallies Above $20

Key Insights:

  • Bitcoin climbed above $39,500, but stayed below $40,000.
  • Ether (ETH) struggled to clear $2,950.
  • APE gained pace and broke the $20.00 resistance (as discussed in the last analysis).

Bitcoin

Recently, bitcoin price started a decent upward move above the $38,450 resistance. There was a clear move above the $39,250 level and the 21 simple moving average (H1).

However, the price struggled to clear the $40,000 resistance zone. It seems to be forming a short-term top near $39,850 and is currently moving lower. There was a break below a major bullish trend line with support near $39,500 on the hourly chart.

Bitcoin

There was a move below the $39,400 support and the 21 simple moving average (H1). If the bears remain in action, the price may perhaps decline towards the $38,450 support zone.

Ethereum (ETH)

ETH also followed a similar pattern above the $2,840 level. The price gained pace above the $2,900 level and the 21 simple moving average (H1).

The price even climbed above the key $2,915 resistance, but the bears were active near $2,950. Ether price is now moving lower and trading below $2,900. There is a key rising channel forming with support near $2,875 on the hourly chart.

Ether

Any more losses might send the price towards the $2,840 level. The next major support sits near the $2,800 level. On the upside, the bears might remain active near $2,950.

ApeCoin (APE)

APE remained in a strong uptrend above the $15.00 level and the 21-day simple moving average (as discussed in the last analysis).

There was a consolidation phase above the $19.00 level. Finally, the price gained strength and started a fresh surge above the $19.65 resistance level. The price even climbed above $20.00 to set a new monthly high.

ApeCoin (APE)

It is now showing positive signs above the $20.50 level. The next key resistance on the upside may perhaps be near $21.20 or $22.00.

If there is a downside correction, the price might test the $20.00 support. The first major support is now forming near the $19.65 level and a trend line on the daily chart. Any more losses may perhaps send the price towards the $17.80 level.

ADA, BNB, and DOT price

Cardano (ADA) is still struggling below the $0.850 resistance zone. It is moving lower and there is a risk of a move towards the $0.800 level.

Binance Coin (BNB) attempted a fresh increase above the $400 pivot level. However, there was no close above the $400 level and the price is now correcting gains.

Polkadot (DOT) traded below the $17.20 and $17.00 support levels to move into a bearish zone. The next major support is near $16.50, where the bulls might take a stand.

A few trending coins are GMT, GRT, and SKL. Out of these, SKL gained pace above the $0.190 resistance and surged over 20%.

Algorand Awards Flare 7-Figure Grant To Develop a Bitcoin Bridge

Key Insights:

  • Flare received the grant from the Algorand Foundation SupaGrant.
  • The bridge will offer greater security through consensus and risk mitigation.
  • Flare will also add Bitcoin as a FAsset, which can be leveraged to build dapps on Flare.

As the fear of DeFi hacks and exploits continues to grow, investors and developers alike are finding ways of being wary of protecting their assets and projects.

And building on the same DeFi chain Algorand has tapped just the right network to make that happen.

Algorand Gets a Touch of Flare

In a press release, the interoperability-focused Flare network announced that it had been awarded a 7-figure Algorand Foundation SupaGrant to develop a Bitcoin bridge into the Algorand ecosystem.

The reason behind this bridge is the constant threat that looms over the DeFi chains of being hacked. As it is just this year, two major crypto hacks left the investors with billions of dollars of their money stolen.

Earlier last month, Axie Infinifty’s Ronin bridge lost over $625 million, which became the biggest hack in the history of cryptocurrencies.

Thus, to avoid that, Flare is focusing on making sure that the new bridge is much more secure and that it will enable secure, trustless interoperability between ALGO and BTC, plus other non-smart contract tokens such as DOGE, LTC, XRP, and XLM.

Flare will achieve this by using the network’s Flare Time Series Oracle and the State Connector.

Commenting on this bridge, the Head of DeFi, Algorand Foundation, Daniel Oon, said,

“Our grant partnership with Flare will develop key DeFi infrastructure with a bridge to Bitcoin, opening up opportunities for further collaboration and innovation. We look forward to our partnership bringing value to our respective communities.”

Not only this, but the Flare network also announced that they would be bringing Bitcoin as a FAsset onto Flare. This way, developers could use this token as a means of developing Dapps by leveraging their FBTC.

Algorand on the Chart

While the bridge might open up new roads for the chain, its primary function as an investment vehicle isn’t doing that well at the moment. After falling consistently throughout the months, ALGO is now trading at $0.66 at a 14-month low.

Algorand’s price is currently at a 14 month low

ALGO might need more than this to recover the losses it has endured throughout 2022

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.

DOGE Tumbles by 12.9% as Investors Await Musk’s DOGE Plans for Twitter

Key Insights:

  • DOGE tumbled by 12.9% on Tuesday, with the reversal seeing DOGE fall back out of the crypto top 10 by market cap.
  • A lack of Elon Musk chatter underwhelmed DOGE holders, with investors now looking for Musk’s next big input.
  • Technical indicators have turned bearish, with DOGE sitting below the 200-day EMA.

In a bearish session for the broader crypto market, a lack of Elon Musk commentary on DOGE left DOGE in the deep red on Tuesday.

Following news of Twitter accepting Elon Musk’s bid on Monday, investors likely considered the lengthy process for Musk to take Twitter control.

On Tuesday, DOGE slumped by 12.9%. Partially reversing a 19.9% breakout from Monday, DOGE ended the day at $.1377.

DOGE Investors Face a Long Twitter Buyout Process

As the dust settles from Elon Musk’s hostile takeover of Twitter, a long process now awaits Twitter and DOGE investors.

Not only do shareholders need to vote on the buyout, but regulators in countries that Twitter does business in will also need to give their seal of approval.

For Musk, the regulatory reviews should be smooth sailing, with there being no reason for regulators to be concerned with antitrust or competition within the social media space.

None of Musk’s existing companies are social media related.

As things stand, the markets anticipate Twitter to be in Musk’s hands later this year. For DOGE investors, that is a long lead time before Musk can exert some DOGE favorable influence.

In the meantime, we do expect DOGE to be hypersensitive to any Musk comments, however.

DOGE Price Action

At the time of writing, DOGE was down 0.80% to $0.1366.

DOGEUSD 270422 Daily
Failure to return to $0.14 will leave DOGE under pressure.

Technical Indicators

DOGE will need to move through the $0.1466 pivot to target the First Major Resistance Level at $0.1576.

DOGE would need the broader crypto market to support a return to $0.15.

An extended rally would test the Second Major Resistance Level at $0.1775 and resistance at $0.18. The Third Major Resistance Level sits at $0.2084.

Failure to move through the pivot would test the First Major Support Level at $0.1267. Barring another extended sell-off, DOGE should steer clear of sub-$0.12 levels. The Second Major Support Level sits at $0.1157.

DOGEUSD 270422 Hourly
A move through the day’s pivot would ease selling pressure.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE sits below the 200-day EMA at $0.1397. This morning, the 50-day converged on the 100-day EMA. The 100-day EMA narrowed to the 200-day EMA, DOGE negative.

A bearish cross of the 50-day EMA through the 100-day EMA would bring $0.12 levels into view.

DOGEUSD 270422 4-Hourly
Technical indicators are bearish, with the 50-day EMA set to cross through the 100.

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.

Bitcoin and ETH Struggle To Hold Gains, ApeCoin Could Resume Surge

Key Insights:

  • Bitcoin is slowly trimming gains from the $40,750 resistance.
  • Ether (ETH) might test the key $2,915 support.
  • APE is showing bullish signs and might resume uptrend above $18.00.

Bitcoin

After a strong move above $40,000, bitcoin price faced sellers. The bears remained active near the $40,750 level. The price reacted to the downside and traded below $40,400.

There was a move below the $40,000 support and the 21 simple moving average (H1). Bitcoin even traded below the 23.6% Fib retracement level of the recent wave from the $38,250 zone to $40,750 high.

Bitcoin

It seems like the price might extend decline and test $39,500. It is near the 50% Fib retracement level of the recent wave from the $38,250 zone to $40,750 high. On the upside, $40,500 and $40,750 are important breakout levels.

Ethereum (ETH)

ETH also attempted an upside continuation above $3,000. However, the price struggled to clear the key $3,035 resistance zone.

It is moving lower below the $3,000 level and the 21 simple moving average (H1). There was a move below the 38.2% Fib retracement level of the recent wave from the $2,800 support to $3,035 high.

Ether

On the downside, there is a major support forming near the $2,915 level. It is near the 50% Fib retracement level of the recent wave from the $2,800 support to $3,035 high. Any more losses might send the price towards the $2,840 level.

ApeCoin (APE)

APE started a major increase after it broke the $12.50 resistance zone and the 21-day simple moving average. Besides, there was a break above a key bearish trend line with resistance near $13.00 on the daily chart.

The price even climbed above $18.00, but it struggled to test the $20.00 resistance. It is correcting gains and trading below the $18.00 level.

ApeCoin (APE)

However, the bulls are protecting the $17.50 support zone. If they remain active, the price could start a fresh surge above $18.00. The next key resistance on the upside may perhaps be near $19.50 or $20.00.

If there is a downside break below the $17.50 support, the price might correct sharply. In the stated case, APE might slide and test the $15.00 support zone in the near term.

ADA, BNB, and DOT price

Cardano (ADA) struggled to gain pace above the $0.885 resistance zone. It is correcting gains and trading below the $0.860 level.

Binance Coin (BNB) failed to stay above the main $400 support zone. It is now moving lower towards the $388 support. The next major support is near $385.

Polkadot (DOT) faced selling interest above the $17.50 level. It is sliding and seems like the bears might aim a test of the $17.00 support zone.

A few trending coins are DOGE, LUNA, and AAVE. Out of these, DOGE is showing a lot of positive signs above the $0.150 level.