Crypto Analysis

Bitcoin Tests Key Support as Market Drops 2%

Market cap is now at $1.84 trillion, down 2.3 per cent, trade volumes across exchanges declined by 5 per cent.

Bitcoin Tests Key Support as Market Drops 2%
Bitcoin Tests Key Support as Market Drops 2%

The crypto market declined by more than 2 per cent today as a strengthening dollar and US treasury yields created selling pressures across financial markets including S&P 500 and Nasdaq. Nasdaq had a 2.8 per cent fall today, the most since March this year. The total crypto market cap is now at $1.84 trillion, down 2.3 per cent, as of 9 am IST. Trade volumes across exchanges declined by 5 per cent.

Bitcoin (BTC), dropped from the daily high of $42,700 to test its 20 week moving average at $40,700 again today before bouncing back briefly to end the day at $41,750 with a modest drop of 1.8 per cent. The next major resistance for BTC continues to be at $44,900, the 20 day exponential moving average. BTC dominance gained today to finish at 42.7 per cent.

Ethereum (ETH) tested its support at $2,800 intra-day and closed at $2,860, a decline of 3 per cent today. ETH has strongly reacted to BTC’s price actions recently. If BTC were to break $40,000 level on the downside, ETH has potential to drop to $2,500 levels. On the upside, $3,300 is the next major resistance to overcome for ETH.

Except Solana (SOL) with a 0.5 per cent increase, all top 20 cryptocurrencies were in the red today. Terra (LUNA), Avalanche (AVAX) and Cosmos (ATOM) registered declines of more than 6 per cent. DYDX, token by the titular decentralized exchange (DEX), has zoomed in the top 100 cryptocurrency list after a significant growth in volume post-China’s ban on centralised exchanges. It registered a 17 per cent growth today, the leader among the list.

BTC price actions will continue to determine the broader market. With a verdict on the US infrastructure bill expected this week, analysts expect a deterministic move soon.

Top Gainers today:

  1. dYdX (DYDX): 17.2%

  2. OKB (OKB): 13.06%

  3. eCash (XEC): 9.7%

Top Loser today:

  1. Decred (DCR): -10.4%

  2. Ren (REN): -7.1%

  3. Tezos (XTZ): -6.8%

Analysis includes the top 100 cryptocurrencies only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

  1. Global crypto exchange Binance has given its users in Singapore one month to withdraw their fiat assets and redeem their tokens as per the Monetary Authority of Singapore (MAS) directive.

  2. Anclap, a Latin American stablecoin issuer, is expanding its Stellar-based stablecoin network by launching a new stablecoin in Peru called Peruvian sol (PEN) that will enable conversions to other fiat currencies as well as any other digital asset.

  3. Revolut, a $33 billion fintech firm that offers crypto-related services, is reportedly launching its own cryptographic token similar to Binance’s BNB that will enable Revolut users to earn it.

  4. Verifone, the world’s largest point-of-sale (POS) provider, has partnered with crypto payments provider Bitpay that will allow US-based customers to make payments through cryptocurrencies at major retailers.

  5. Global mining machine maker Bitmain is reportedly planning to suspend sales of its machines to miners in mainland China following China's latest regulatory crackdown. Bitmain will likely move its production out of Southern China into other countries.

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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June 2024