Značka: Bitcoin

Price analysis 5/16: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

The selling in Bitcoin (BTC) is showing no sign of abating and Bitcoin has fallen for seven straight weeks for the first time ever. This indicates that the momentum remains strongly in favor of the bears. While the short-term sentiment remains bearish, institutional traders seem to be taking a longer-term approach on cryptocurrencies. Goldman Sachs and Barclays joined several other institutional investors in a $70 million Series A funding round by institutional trading platform Elwood Technologies. Daily cryptocurrency market performance. Source: Coin360After the mayhem and volatility of the last week, crypto prices may attempt a relief rally in the next few days. It is unlikely to be a V-shaped recovery because the macro conditions are not supportive. During periods of high volatility and uncertainty, it might be a wise decision to cut down on the trading position size to keep risk under check.What are the critical support and resistance levels that may indicate a potential change in trend when breached? Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTBitcoin turned down from $3,460, suggesting that bears are selling on minor rallies. The bears will now attempt to sink the price below the crucial support at $28,805 but the bulls are likely to have other plans.BTC/USDT daily chart. Source: TradingViewIf price rebounds off $28,805, the bulls will again try to push the BTC/USDT pair to the 20-day exponential moving average ($33,646). This is an important level to keep an eye on because a break and close above it could indicate that bulls are attempting a comeback. The pair could then rise to the 50-day simple moving average ($39,300).Contrary to this assumption, if the price slips below $28,805, the pair could drop to $26,700. If this support cracks, the pair could resume its downtrend and the price may plummet to $25,000 and later to $21,800.ETH/USDTEther (ETH) is facing stiff resistance at the breakdown level at $2,159 which suggests that bears continue to sell on rallies. The bears will now try to pull the price below the immediate support at $1,940.ETH/USDT daily chart. Source: TradingViewIf they succeed, the ETH/USDT pair could drop to the critical support at $1,700. This is an important level for the bulls to defend because if they fail to do that, the downtrend could resume and the pair may drop to $1,500.Contrary to this assumption, if the price turns up from $1,700, the pair could rise to $2,159 and remain range-bound between these two levels.The first sign of strength will be a break and close above $2,159. That could clear the path for a rally to the 20-day EMA ($2,421). The bulls will have to overcome this barrier to indicate that the downtrend may be over. BNB/USDTBinance Coin’s (BNB) strong recovery reached near the breakdown level at $320 on May 13 and May 15 but the bulls could not clear this overhead barrier. This suggests that bears are attempting to flip the level into resistance.BNB/USDT daily chart. Source: TradingViewThe BNB/USDT pair could now drop to $265 which is likely to act as support. If the price rebounds off this level, the buyers will again try to drive the pair above $320. If they succeed, the pair could rally to $350 and thereafter to the 50-day SMA ($391).Alternatively, if the price slips below $265, the pair could drop toward the strong support at $211. The bulls are expected to defend this level with vigor. A strong bounce off this support could keep the pair range-bound between $211 and $320 for the next few days.XRP/USDTThe long wick on Ripple’s (XRP) May 13 candlestick suggests that bears are trying to pose a strong challenge near the breakdown level at $0.50. The failure to rise above this overhead resistance could have tempted short-term traders to book profits.XRP/USDT daily chart. Source: TradingViewIf the price continues lower and breaks below $0.38, the XRP/USDT pair could drop to $0.33. The bulls are expected to defend this level aggressively but if the support cracks, the bearish momentum could pick up and the pair may plummet to $0.24. Contrary to this assumption, if the price turns up from the current level or the support at $0.38, the bulls will try to push the pair above the $0.50 to $0.55 overhead zone. If they succeed, it will suggest that the markets have rejected the lower levels. That could clear the path for a potential rally to the 50-day SMA ($0.67).ADA/USDT Cardano’s (ADA) relief rally is facing selling near $0.61 suggesting that bears are not willing to let go of their advantage. The bears will try to pull the price below $0.46 and retest the May 12 intraday low at $0.40. ADA/USDT daily chart. Source: TradingViewIf the price breaks below $0.40, the selling could intensify further and the ADA/USDT pair may plunge to $0.33 and later to $0.28. Conversely, if the price turns up from the current level or the support at $0.46, it will suggest that bulls are attempting to put in a bottom. The buyers will have to push and sustain the price above the 20-day EMA ($0.68) to signal that the correction may be over. The pair could then rise to $0.74 and later to the 50-day SMA ($0.89).SOL/USDTSolana’s (SOL) bounce from $37 is facing stiff resistance at the 38.2% Fibonacci retracement level at $59. This suggests that bears continue to sell on minor rallies.SOL/USDT daily chart. Source: TradingViewThe bears will now try to pull the price below the immediate support at $44. If they succeed, the SOL/USDT pair could retest the crucial level at $37. A break and close below this support could sink the pair to $32.Conversely, if the price turns up from the current level or the support at $44, it will suggest that bulls are buying on dips. The bulls will then try to clear the overhead hurdle at $59 and push the pair to the 20-day EMA ($70). This level is likely to act as a stiff resistance.DOGE/USDTDogecoin’s (DOGE) recovery could not rise above the breakdown level at $0.10, suggesting that the bears are trying to flip the level into resistance. If sellers succeed in their endeavor, the likelihood of a retest of $0.06 increases.DOGE/USDT daily chart. Source: TradingViewThis is an important level for the bulls to defend because a break and close below it could signal the resumption of the downtrend. The DOGE/USDT pair could then drop to $0.04 where the bulls may again try to arrest the decline.Alternatively, if the price turns up from the current level, the bulls will attempt to clear the overhead hurdle at $0.10 and the 20-day EMA ($0.11). If they do that, the pair could rally to the 50-day SMA ($0.13).Related: Deus Finance’s dollar-pegged stablecoin DEI falls below 60 centsDOT/USDTPolkadot (DOT) climbed back above the breakdown level of $10.37 on May 13 but the recovery stalled near $12. This suggests that the sentiment remains negative and traders are selling on rallies. DOT/USDT daily chart. Source: TradingViewIf bears sink the price below $10.37, the DOT/USDT pair could drift lower toward the minor support at $8. If this level cracks, the possibility of a break below $7.30 increases. The pair could then resume its downtrend and plummet toward the next strong support at $5.Alternatively, if the price rebounds off $10.37 or $8, the bulls will attempt to push the pair above the 20-day EMA ($13). If they manage to do that, it will suggest that the short-term trend may have turned in favor of the buyers. The pair could then attempt a rally to $16.AVAX/USDTAvalanche’s (AVAX) recovery is facing stiff resistance at $38. The shallow rebound following a sharp decline suggests a lack of aggressive buying by the bulls. This could embolden the bears who may try to build upon their advantage.AVAX/USDT daily chart. Source: TradingViewIf bears pull the price below $29, the selling could pick up momentum and the AVAX/USDT pair could drop to the critical level at $23. This is an important level for the bulls to defend because a break and close below it could result in a decline to $20 and thereafter to $18.Contrary to this assumption, if the price turns up from the current level or $29, it will suggest that bulls are buying at lower levels. That could increase the possibility of a relief rally to the 20-day EMA ($48) where the bears may again mount a strong defense.SHIB/USDTShiba Inu’s (SHIB) rebound hit a wall at the 38.2% Fibonacci retracement level at $0.000014 on May 13 and 14, indicating that bears do not want to let go of their advantage.SHIB/USDT daily chart. Source: TradingViewThe bears will once again try to sink the price below the psychological level at $0.000010 and challenge the intraday low of $0.000009 made on May 12. A break and close below this level could signal the resumption of the downtrend. The SHIB/USDT pair could then decline to $0.000007 which is likely to act as a strong support.Contrary to this assumption, if the price rebounds off $0.000010, the bulls will attempt to push the pair to the breakdown level at $0.000017. The buyers will have to clear this hurdle to suggest that the bears may be losing their grip.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.

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Top 5 cryptocurrencies to watch this week: BTC, MANA, MKR, ZEC, KCS

Bitcoin (BTC) has been relatively calm during the weekend as crypto traders try to rebuild the markets after the Terra LUNA debacle. With macro factors not supportive, several analysts expect the recovery to be a slow grind.Crypto research firm Delphi Digital said in a recent report that the rally in the United States dollar index (DXY) had pushed its 14-month relative strength index “above 70 for the first time since its late 2014 to 2016 run up.”Historically, 11 out of 14 such instances had resulted in the DXY rising about 5.7% over the following 12 months. If the inverse correlation between the DXY and Bitcoin remains intact, that could spell trouble for crypto investors.Crypto market data daily view. Source: Coin360Arthur Hayes, the former CEO of crypto derivatives platform BitMEX, said in his latest blog post that the crypto markets “must be allowed time to heal” after the bloodbath. He said that if Bitcoin drops to $20,000 and Ether (ETH) to $1,300, he would turn into a buyer.Although crypto markets are in a downtrend, periodic bear market rallies could offer short-term trading opportunities. Let’s study the charts of the top-5 cryptocurrencies that may bounce if the sentiment improves.BTC/USDTBitcoin attempted a strong bounce on May 13 but the long wick on the day’s candlestick suggests that bears are in no mood to let go of their advantage. However, a minor positive is that the bears have not been able to sustain the price below the crucial support at $28,805.BTC/USDT daily chart. Source: TradingViewThe recovery could hit a hurdle at the 38.2% Fibonacci retracement level at $31,721 and again at the 20-day exponential moving average (EMA)($33,985). If the price turns down from either resistance, the bears will fancy their chances and try to sink the BTC/USDT pair below $26,700. If they manage to do that, the downtrend could resume. The next support on the downside is $25,000 and then $21,800.Contrary to this assumption, if buyers drive the price above the 61.8% Fibonacci retracement level at $34,823, it will suggest that the selling pressure may be weakening. That could result in a sharp rally to the 50-day simple moving average (SMA) ($39,626) where the bears are again expected to pose a strong challenge.BTC/USDT 4-hour chart. Source: TradingViewThe bulls are buying the dips to the critical support at $28,805 while the bears are attempting to stall the recovery at the downtrend line. The 20-EMA has flattened out and the RSI has risen to the midpoint, indicating a balance between supply and demand.If buyers propel the price above the downtrend line, it will indicate advantage to buyers. The bulls could then push the price to $32,659. A break and close above this level could clear the path for a possible rally to the 200-SMA.Conversely, if bears pull the price below $28,805, the pair could drop to $27,700. The bulls are likely to defend this support aggressively because a break below it could signal the resumption of the downtrend.MANA/USDTDecentraland (MANA) has been in a strong downtrend for the past several days. The bulls aggressively defended the decline to $0.60 on May 12 resulting in a recovery to the 20-day EMA ($1.36).MANA/USDT daily chart. Source: TradingViewIn a downtrend, the bears sell on rallies to the 20-day EMA. If the price turns down sharply from the current level, the bears will again try to retest the support at $0.60. A break and close below this level could indicate the resumption of the downtrend. The MANA/USDT pair could then extend its decline to the psychological level at $0.50.Conversely, if bulls do not give up much ground from the current level, it will suggest that traders are buying on dips. That could enhance the prospects of a break above the 20-day EMA. If that happens, the pair could rally to the 50-day SMA ($1.94).MANA/USDT 4-hour chart. Source: TradingViewThe strong rebound off the 0.60 level has risen above the 50-SMA. Although bears tried to pull the pair down, the bulls bought the dips to the 20-EMA. This suggests that bulls are attempting a comeback. The buyers will now attempt to push the price to the 200-SMA, which is likely to act as a strong resistance.Contrary to this assumption, if the price turns down from the current level and breaks below the 20-EMA, it will suggest that bears are active at higher levels. That could pull the price down to $0.95. If this level cracks, the pair could retest the crucial support at $0.60.MKR/USDTMaker (MKR) bounced off the psychological support at $1,000 on May 12 indicating that bulls are defending this level with all their might. The bulls pushed the price to the 50-day SMA ($1,754) on May 13 but the long wick on the day’s candlestick shows strong selling at higher levels.MKR/USDT daily chart. Source: TradingViewHowever, a positive sign is that the bulls did not give up ground on May 13 and resumed the relief rally. The 20-day EMA ($1,440) has started to turn up and the RSI is just above the midpoint, suggesting a minor advantage to buyers.The bulls will attempt to drive the price above the 50-day SMA. If they succeed, it will clear the path for a possible rally to the 200-day SMA ($2,179). Alternatively, if the price turns down from the current level or the 50-day SMA, it will suggest strong selling at higher levels. The bullish momentum could weaken if bears pull and sustain the price below the 20-day EMA.MKR/USDT 4-hour chart. Source: TradingViewThe 200-SMA has been repeatedly acting as a strong resistance but a positive sign is that the bulls are buying the dips to the 20-EMA. This suggests a change in sentiment from selling on rallies to buying on dips.If buyers sustain the price above the 200-SMA, the MKR/USDT pair could pick up momentum and rally to $1,800 and later to $1,900. Conversely, if the price turns down from the current level and breaks below the 20-EMA, the pair could drop to the 50-SMA.Related: Ethereum in danger of 25% crash as ETH price forms classic bearish technical patternZEC/USDTZcash (ZEC) has successfully held the strong support at $81 in the past few days. Although bears pulled the price below this support on May 11 and 12, they could not sustain the lower levels. This indicates strong demand from the bulls.ZEC/USDT daily chart. Source: TradingViewThe ZEC/USDT pair could now rise to the 20-day EMA ($114). This level had acted as a strong hurdle during the previous pullback on May 5. Therefore, the bears will try to stall the recovery at the 20-day EMA. If they manage to do that, the price could again drop toward the crucial support at $81. The bears will have to sustain the price below this level to start the next leg of the downtrend.Alternatively, if bulls push the price above the 20-day EMA, the pair could rise to $135 where the bears may mount a strong defense. The bulls will have to push the price above the 200-day SMA ($150) to signal a potential change in trend.ZEC/USDT 4-hour chart. Source: TradingViewThe bulls have pushed the price above the 50-SMA on the 4-hour chart. This suggests that demand remains intact at higher levels. The 20-EMA has started to turn up and the RSI is in the positive zone, indicating that sellers may be losing their grip.The buyers could face resistance in the zone between $108 to $116 but if they overcome this barrier, the recovery could reach $135.On the downside, the first sign of weakness will be a break and close below $87. That could open the doors for a retest of the crucial support zone between $81 and $69. A break and close below $69 could indicate the resumption of the downtrend.KCS/USDTKuCoin Token (KCS) rebounded sharply off the strong support at $9 on May 12. The relief rally has risen above the first hurdle at the 38.2% Fibonacci retracement level at $12.89, which is a mild positive.KCS/USDT daily chart. Source: TradingViewThe KCS/USDT pair could next rise to the 50% retracement level at $14.95 and later rally to the critical overhead resistance at the 20-day EMA ($15.45). This is an important level to keep an eye on because a break above it could signal that the downtrend may have ended.Contrary to this assumption, if the price turns down sharply from the current level, the bears will again attempt to sink the pair below the crucial support at $9. If this level cracks, the pair could resume its downtrend and decline to $5 and thereafter to $4.40.KCS/USDT 4-hour chart. Source: TradingViewThe bulls have pushed the price to the 50-SMA indicating a strong comeback attempt. The 20-EMA has started to turn up gradually and the RSI has jumped into the positive territory, suggesting that the path of least resistance is to the upside.If bulls push the price above the 50-SMA, the pair could rally to $15. The bullish momentum could pick up further if buyers overcome this barrier. This positive view could invalidate in the short term if the price turns down from the 50-SMA and breaks below $12. The bears will then try to sink the pair to the strong support at $9.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

Bitcoin (BTC) needs to hold current levels and work to reclaim higher ones to avoid a crash in the $20,000 range, the latest analysis warns. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewIs $20,000 incoming?Data from Cointelegraph Markets Pro and TradingView showed BTC/USD still failing to cement $30,000 as support on the May 16 Wall Street open.The pair had seen fresh losses after the weekly close at $31,300, this in itself disappointing market participants after sealing a record seventh consecutive red weekly candle.Even as the Luna Foundation Guard (LFG) revealed that it had sold almost all of its BTC reserves during last week’s LUNA and TerraUSD meltdown, the implied lack of future selling failed to lift the mood on markets.”Coming days going to be very important IMO. Keep these levels, grind higher from here,” popular trader Phoenix summarized in a Twitter post on the day. “If it fails, my eyes are on $21.8-23.8K. Didn’t expect to keep those in mind again, lol. I was wrong thinking Q1 structure was a trend reversal start.”Phoenix is far from alone in forecasting a return to levels even lower than last week’s floor at just under $24,000.Joining the consensus, fellow trader and analyst Rekt Capital likewise pointed to $20,000 being an area of interest should current levels fail to hold and buyers not materialize.#BTC Monthly TimeframePrice is at ~$28800 supportIn 2021, $BTC formed long downside wicks against this support, indicating strong buy-side interest hereLet’s see if buyer’s show up soon because next major Monthly support lower down is at ~$20000 (orange)#Crypto #Bitcoin pic.twitter.com/TKcvFcSENh— Rekt Capital (@rektcapital) May 16, 2022Last week’s action, he added, could have already created a new trading range for Bitcoin with its macro range low at $28,800 figuring as its ceiling.”If this turns out to be the case, Macro Range Low could flip into resistance to again reject price to lower levels,” he explained. Meanwhile, some remained cautiously optimistic on the short-term prospects, including Cointelegraph contributor Michaël van de Poppe.”Not sure whether we’ll be getting that test going around $28.4K, but this is a scenario where I’d be looking at,” he told Twitter followers. “Crucial bullish breaker is $30.2K. Overall, expecting continuation towards $32.8K for Bitcoin.”At the time of writing, BTC/USD traded at around $29,300 on Bitstamp.Bitcoin “synonymous with volatility”On macro, the picture remained broadly similar to recent weeks: stocks under pressure amid an ongoing surge in U.S. dollar strength.Related: First 7-week losing streak in history ― 5 things to know in Bitcoin this weekThe U.S. dollar index (DXY) hit 105 on May 13, and as of May 16 was attempting to retest that level, which saw a rejection at the time.The S&P 500 was down 0.65% on the day, while the Nasdaq 100 lost 1.3%.Twitter stock again hit the headlines, this time underperforming tech stocks to trade at less than it had done before Elon Musk announced his 9% equity stake and takeover bid.For Bloomberg Intelligence chief commodity strategist Mike McGlone, there were comparisons to be made with the dotcom bubble.#Cryptos vs. #StockMarket: $1 Trillion Wipeout vs. $20T – Crypto assets were top performers in the past decade, and the trend is accelerating in the 2020s. The internet bubble that burst in 2000 was a reminder that nascent technologies/assets are synonymous with volatility pic.twitter.com/Jwxt6Yr8iG— Mike McGlone (@mikemcglone11) May 16, 2022

“If the risk-asset tide keeps ebbing, one of the best performers in history — Bitcoin — should face fitting mean reversion, but early adoption days may favor the nascent technology/asset,” he wrote in a further tweet on the day. “Both Bitcoin and the S&P 500 have dropped below their 100-week moving averages.Bitcoin vs. S&P 500 moving average chart. Source: Mike McGlone/ TwitterThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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First 7-week losing streak in history ― 5 things to know in Bitcoin this week

Bitcoin (BTC) starts a new week under $30,000 as the battle to save the market from fresh lows grinds on.After hitting its highest since the Terra LUNA crash last week, the largest cryptocurrency nonetheless continues to fail to reclaim $30,000 as support.What could be in store this week? The potential for major upheaval from macro players, notably the United States Federal Reserve, is shapeshifting this week ahead of the World Economic Forum. At the same time, internal crypto market pressure remains as the implications of LUNA’s collapse continue to play out.Cointelegraph takes a look at five potential BTC price movers for the coming days.Record weekly downside greets bullsThe sense of caution among traders is palpable this week after the past seven days upended market expectations.When Blockchain protocol Terra’s LUNA and TerraUSD (UST) tokens imploded, their decline ricocheted throughout crypto markets, and Bitcoin was naturally no exception.After dipping to near its realized price just below $24,000, BTC/USD staged something of a V-shaped recovery to bounce past $31,000 in the following few days. That strength, however, now appears limited, as $30,000 proves to be a stubborn level to win over for good.While the picture looks decidedly more reassuring than that of some altcoins, traders are keeping away from any firmly bullish price takes.A key narrative gaining traction revolves around current levels forming the basis of a relief bounce which will ultimately end not just in rejection but an attack on lower lows than those from last week.$BTC / $USD – Update This for me is the best case scenario on #Bitcoin due to the rejection and 3 wave confirmation. We either drop to new lows from here, or we complete the C wave flat then pump once more If your a scalper this will be heaven for you over the next few days pic.twitter.com/LNvVbpXPG6— Crypto Tony (@CryptoTony__) May 16, 2022“Just as us bulls fought the trend for the past few weeks, I think bears about to deny or refuse any more upside,” popular Twitter account IncomeSharks said in part of two recent posts on the BTC/USD outlook.It added that those only now flipping bearish, however, will “get too stuck in their bias.”Fellow trader Crypto Tony meanwhile said that the pair needs to reclaim $31,000, not just $30,000, in order to continue higher thanks to the former marking the highs of the week’s range.Zooming out, the picture hardly seems any less precarious than on hourly or daily timeframes.The weekly BTC/USD chart, despite the modest recovery, closed its seventh red candle in a row on May 15 — the first time in history that such an event has occurred. The week closed out at around $31,300, data from Cointelegraph Markets Pro and TradingView shows.BTC/USD 1-week candle chart (Bitstamp). Source: TradingViewPondering whether protracted downside could continue much longer — even beyond 2022 — Twitter account Nunya Bizniz noted that leading into block subsidy halvings, Bitcoin has historically been far below all-time highs.As such, it would fit historical precedent for BTC/USD to trade significantly under $69,000 at the time of its next halving in two years’ time.BTC weekly:At halvings, price has been considerably below ATH.Makes me☹️Different this time? pic.twitter.com/gQlQCEbW4w— Nunya Bizniz (@Pladizow) May 16, 2022

DXY just won’t quit as Davos loomsLast week saw the Fed grapple with inflation, rate hikes and geopolitical strife, all factors that were ironically eclipsed almost immediately by Terra.By contrast, no announcements of such significance are expected this week, but the underlying tensions have not gone away.As such, the Russia-Ukraine war, inflation and measures being undertaken to mitigate it remain the topic du jour for central banks around the world. This will no doubt be a major topic of the World Economic Forum as the 2022 event begins on May 22.The Forum, and the potential for Bitcoin-related soundbites from attendees both positive and negative, will follow a different gathering this week in El Salvador, where representatives of 44 countries will discuss Bitcoin.“Tomorrow, 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,” President Nayib Bukele confirmed on May 15.At the same time, the U.S. dollar refuses to quit when it comes to strength versus major trading partner currencies.The U.S. dollar index (DXY), despite local consolidatory phases, remains in a firm uptrend which has denied bears a macro top for months.DXY hit 105 on May 9, its highest since the week of Dec. 9, 2002.“At the same time, the Euro is testing it’s 5-year lows vs the U.S. Dollar,” analyst Blockchain Backer tweeted as part of a thread on the macro environment as it relates to crypto. “The Euro is a major component of the U.S. Dollar Currency Index (DXY), and historically has been acting inversely to the DXY.”U.S. dollar index (DXY) 1-day candle chart. Source: TradingViewDXY traditionally pressures stocks and crypto markets as well, the latter nonetheless showing correction structures already seen in bear markets, Blockchain Backer argues.“So, we have a lot of things happening here. Dow Jones below support break from last week. DXY in 20-year highs. EURUSD on support. Altcoin Market and Ethereum with similar correction structures seen before. But, no coins are flying as if a reversal is in,” the thread continued.Tether crawls back from 5% depeggingRegardless of upcoming events, it is the ghost of last week’s mayhem that is haunting the market on Monday.The aftermath of the collapse of Terra’s UST and LUNA tokens is not yet fully understood as data continues to trickle in about both the breakdown and the company’s plans to mitigate the fallout.Some facts appear clear, yet have not been officially corroborated, such as mass selling of the Luna Foundation Guard’s (LFG) BTC reserves. Others remain rumors, notably mass insolvencies of organizations with LUNA and UST exposure. What happens next is equally unclear, and as Blockchain Backer notes, no one knows for sure whether the sell-off is done.“Last week there was a devastating hit on LUNA and UST. We don’t know the complications of this and who took collateral damage from it yet,” it summarized. “Were there other treasuries exposed to this? Has LFG sold off all their Bitcoin reserves, or is there more left? We don’t know.”Attention is not just on UST, however, but on the industry’s largest stablecoin by market cap. Tether (USDT) saw its dollar peg slip last week, and despite there being no signs of a repeat UST performance, 1 USDT still does not fully equal 1 USD as of May 16.USDT/USD 1-hour candle chart (Bitstamp). Source: TradingView“When things started hitting the fan for TerraUSD (UST), it started with a small slip, then spun out of control,” Blockchain Backer added.As Cointelegraph reported, Tether’s creators have vocally defended USDT’s ability to ride out the storm thanks to its structure being inherently different from UST and algorithmic stablecoins in general. “Over the next few weeks, we will start to know the full extent of damage as reports of significant losses and collapses emerge,” Crypto trading firm QCP Capital told Telegram channel subscribers in its latest update on May 13. “In spite of the carnage however, we are heartened by the resilience we’ve seen in particular segments of crypto.”LUNA continues to see uncontrolled volatility, making it all but impossible to chart on any timeframe, and at the time of writing on May 16 traded at 0.00023 on Bitfinex.LUNA/USD 1-hour candle chart (Bitfinex). Source: TradingViewAnalyst: Institutions stepping up to buyIs anyone buying Bitcoin? Data says that the answer to this is a firm “yes” from certain market segments.In analysis released on May 16, Ki Young Ju, CEO of analytics platform CryptoQuant, highlighted interest from institutional investors as a key phenomenon of Bitcoin between $25,000 and $30,000.Ki explained that while the LUNA debacle had forced bids down toward $25,000, overall bids had remained the same for a year. Not only that, but those bids could now be mitigating the sell-offs related to Terra.“If you see the BTC-USD order book heatmap for Coinbase, it’s pretty thick bid walls since the latest bear market in May 2021,” he noted.“I think institutions tried to stack $BTC from $30k but had to rebuild the bid walls at $25k due to the unexpected LFG selling.”An accompanying chart shows how events played out on Coinbase, the exchange that Ki says received the bulk of Terra-related funds for sale.Coinbase order book vs. BTC/USD annotated chart. Source: Ki Young Ju/ TwitterAs Cointelegraph reported, meanwhile, the world’s first Bitcoin spot price exchange-traded fund (ETF) added a record intraday amount of BTC to its assets under management last week as two Australian ETFs began operating.Bitcoin address growth contrasts sentiment woesIt is likely not surprising that crypto market sentiment remains on the floor.Related: $1.9T wipeout in crypto risks spilling over to stocks, bonds — stablecoin Tether in focusReflecting nerves over price stability, the Crypto Fear & Greed Index is firmly in “extreme fear” territory this week at 14/100.Having hit historical bottom territory last week, the recovery has been conspicuously less robust than the original fall, which took the Index from 27/100 to 10/100 in five days.Crypto Fear & Greed Index (screenshot). Source: Alternative.meBehind the scenes, however, all may not be as bleak as it seems.Data from on-chain monitoring firm Santiment last week shows that amid the chaos, unique Bitcoin addresses continue to grow.“The silver lining to this -33% drop the past 3 weeks is that $BTC’s address activity has remained steady,” it wrote in Twitter comments. “The divergence between addresses & price is at a 16-month high.”Bitcoin unique addresses vs. BTC/USD annotated chart. Source: Santiment/ TwitterThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Utility tokens vs. equity tokens: Key differences explained

Investors familiar with the concept of equity investing will find equity tokens to be an extension of the same thought process as initial public offerings while those with a riskier appetite can venture into plonking their capital on the utility tokens in which they believe. One glaring difference between utility and equity tokens is the fact that the former is not regulated as they provide access to a service rather than a specific investment in an asset or company as do equity tokens.  However, for those asking the question of whether utility tokens can be traded, the answer is that they are similar to equity tokens in this aspect and are available for trading on various exchanges.  To answer whether utility tokens are good investments though, any money put into a utility token needs to be weighed against the prospects of the service being offered by the issuing company and the potential rise in its demand to generate returns for token holders. On the other hand, equity tokens are regulated and issued by existing firms that are already in business and provide token holders with voting rights that allow them to participate in the working of the company.  For novice crypto investors, it seems more prudent to invest in equity tokens as they are an extension of equity shares on the traditional stock market and are an easier concept around which to wrap oneself.  However, if you believe in the prospects of a blockchain project like XRP and want to gain an early mover advantage, it may be more beneficial to put your money on a utility token ICO and ride the demand wave to generate handsome returns in the process.  Do remember that utility tokens are not treated as a security and therefore, will have a higher risk involved when investing. Either way, it is important to read all the terms and conditions before investing money and understand the applicable fees that are levied on redemption or while trading these tokens on the various exchanges available in the crypto market.

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Ethereum in danger of 25% crash as ETH price forms classic bearish technical pattern

Ethereum’s native token Ether (ETH) looks ready to undergo a breakdown move in May as it forms a convincing “bear pennant” structure.ETH price to $1,500?ETH’s price has been consolidating since May 11 inside a range defined by two converging trendlines. Its sideways move coincides with a drop in trading volumes, underscoring the possibility that ETH/USD is painting a bear pennant.Bear pennants are bearish continuation patterns, meaning they resolve after the price breaks below the structure’s lower trendline and then falls by as much as the height of the previous move downside (called the flagpole).ETH/USD two-hour price chart. Source: TradingViewAs a result of this technical rule, Ether risks closing below its pennant structure, followed by additional moves to the downside. The height of ETH’s flagpole is around $650. Therefore, if the price undergoes breakdown at the pennant’s apex point near $2,030 then the structure’s bearish target will be below $1,500, down over 25% from today’s price.Sell-off, pullbackInterestingly, the bear pennant’s profit target falls into the area that preceded a 250% price rally in the February-November 2021 session. Also, the target is around Ether’s 200-week exponential moving average (200-day EMA; the blue wave), currently near $1,600.Ideally, the demand zone could prompt Ether traders to accumulate the tokens in anticipation of a sharp upside retracement. Suppose it happens, then ETH’s price interim profit target would likely be the multi-month downward sloping trendline that has served as resistance in a “falling channel” pattern, as shown in the chart below.ETH/USD weekly price chart. Source: TradingViewETH has already been rebounding after testing the demand zone (and the falling channel’s lower trendline) as support. This could push ETH/USD to reach the channel’s upper trendline near $3,000, about 50% above today’s price, by June.Extended breakdown scenarioThe worst-case scenario could be ETH breaking below the demand zone, led by macro risks and their impact on the crypto market so far in 2022.Related: $1.9T wipeout in crypto risks spilling over to stocks, bonds — stablecoin Tether in focusNotably, Ether has declined by over 50% quarter-to-date as investors reduce their exposure to the riskier assets, including Bitcoin (BTC) and tech stocks, in a higher interest rate environment.As Cointelegraph has reported, anticipations of additional stock market selloffs could weigh on cryptos, thus hurting Ether, Bitcoin, Cardano (ADA), and others in tandem.Ethereum’s correlation coefficient with tech-heavy Nasdaq 100 is at 0.90. Source: TradingViewBOOX Research, a financial blogger at SeekingAlpha, remains long-term bullish on Bitcoin, Ethereum, and the broader crypto market but believes a recovery might take several years. Excerpts from its note:”While some of the corrections from the top may have simply shaken out the ‘hot money,’ there is still a risk that a deteriorating macro environment opens the door for even deeper losses.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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$1.9T wipeout in crypto risks spilling over to stocks, bonds — stablecoin Tether in focus

The cryptocurrency market has lost $1.9 trillion six months after it soared to a record high. Interestingly, these losses are bigger than those witnessed during the 2007’s subprime mortgage market crisis — around $1.3 trillion, which has prompted fears that creaking crypto market risk will spill over across traditional markets, hurting stocks and bonds alike.Crypto market capitalization weekly chart. Source: TradingViewStablecoins not very stableA massive move lower from $69,000 in November 2021 to around $24,300 in May 2022 in Bitcoin’s (BTC) price has caused a selloff frenzy across the crypto market. Unfortunately, the bearish sentiment has not even spared stablecoins, so-called crypto equivalents of the U.S. dollar, which have been unable to stay as “stable” as they claim.For instance, TerraUSD (UST), once the third-largest stablecoin in the industry, lost its dollar peg earlier this week, falling to as low as $0.05 on May 13. UST/USD daily price chart. Source: TradingViewMeanwhile, Tether (USDT), the largest stablecoin by market cap, briefly fell to $0.95 on May 12. But unlike TerraUSD, Tether managed to recover back to near $1, primarily because it claims to back its dollar peg using good old-fashioned reserves, including the real dollars and government bonds.Crypto spillover risksBut that is where the trouble begins, according to a warning issued by rating agency Fitch last year. The agency feared that Tether’s rapid growth could have implications for the short-term credit market, where it holds a lot of funds, according to the company’s reserves breakdown disclosed here.If traders decide to dump their Tether, the most-popular dollar-pegged stablecoin in the crypto sector, for cash, it would risk destabilizing the short-term credit market, Fitch noted.Crypto losses now equal $1.7 trillion. The 2007 subprime mortgage market was $1.3 trillion. It’s highly likely that Crypto will be the catalyst for accelerated global collapse. Weekend risk is HIGH. pic.twitter.com/4Ewo73uTeg— Mac10 (@SuburbanDrone) May 12, 2022The credit market is already struggling under the weight of higher interest rates. Tether could further pressure it lower as it holds $24 billion worth of commercial paper, $35 billion worth of Treasury notes, and $4 billion worth of corporate bonds. The signs are already visible. For example, Tether has been reducing its commercial paper reserves during the crypto correction in the last six months, its chief technology officer, Paolo Ardoino, confirmed on May 12. So, based on Fitch’s warning last year, many analysts fear that the “financial run” might soon spill over to the traditional market.That includes Joseph Abate, managing director of fixed income research at Barclays, who believes Tether’s decision to sell its commercial papers and certificate deposit holdings before maturity could mean paying several months of interest in penalty.As a result, they could be forced to sell their liquid Treasury bills, which make up 44% of their net holdings.Related: What happened? Terra debacle exposes flaws plaguing the crypto industry”We do not know what is going to happen, but the danger cannot be dismissed out of hand,” opines Robert Armstrong, the author of Financial Times’ Unhedged newsletter, adding: “Stablecoins have a total market capitalization of more than $150 billion. If the pegs all break — and they could — there will be ripples well beyond crypto.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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