Crypto Analysis

Brief Recovery in Crypto Markets as Bitcoin Goes Past $47,000

Ethereum is currently trading at 3,410, with a 3.3% daily increase

Brief Recovery in Crypto Markets as Bitcoin Goes Past $47,000
Brief Recovery in Crypto Markets as Bitcoin Goes Past $47,000

The global crypto market witnessed a minor recovery, as Bitcoin (BTC) rose from $45,050 to $47,470 before closing at $47,120 as of 9 am IST, an increase of 4.4 per cent on the day of its golden cross on the charts - a widely accepted bullish signal. A golden cross happens when the 50-day moving average goes above the 200-day moving average, indicating a strong price action in the medium-term. The total crypto market cap rose to $2.13 trillion, up by 3.3 per cent as of 9 am IST. Trade volumes across exchanges, however, declined by 18 per cent given high activity the previous day.

BTC broke through its $46,000 resistance and hit the top of the channel that it formed since last week’s crash. The movement seems to be in line with analysts’ expectation of a rise to $48,000-49,000 levels before another dip, possibly to the 20-week moving average currently hovering at $42,000. BTC dominance has now increased to 41.7 per cent.

Ethereum (ETH) too made steady gains, going from a low of $3,270 to an intraday high of $3,450. It is currently trading at 3,410, with a 3.3 per cent daily increase.

Amongst the top 20 cryptocurrencies, most were in the green while Avalanche (AVAX) and Algorand (ALGO) are consolidating after their rallies earlier this month with more than 6 per cent declines today. Solana (SOL) dipped as well, as the network was shut down briefly, closing the day with a 4 per cent drop. Chainlink (LINK), Uniswap (UNI), and Polkadot (DOT) gained by more than 6 per cent today.

In the short-term, BTC needs to break the upside of $48,000 to take advantage of the golden cross and bring additional momentum to the market.

Top Gainers today:

  1. Hedera Hashgraph (HBAR): 26.4%

  2. AAVE (AAVE): 19.1%

  3. eCash (XEC): 19.0%

Top Losers today:

  1. Avalanche (AVAX): -8.7%

  2. Quant (QNT): -6.2%

  3. Algorand (ALGO): -5.3%

The analysis includes the top 100 cryptocurrencies only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

  1. Solana (SOL) exhibited price volatility yesterday as the Solana network encountered a huge increase in transaction loads causing the network to go offline. The validator community voted to restart the network after unsuccessful attempts to stabilize it.

  2. Google is partnering with Canadian blockchain studio Dapper Labs to foster the development of new Web 3 products and services, including NFTs. As part of the deal, Google Cloud will serve as a network operator for Dapper Labs’ Flow blockchain.

  3. Venture capital firm Jump Capital has launched a $350 million fund to invest in both equity and tokens, across the areas of decentralised finance (DeFi), blockchain infrastructure, and Web 3.0.

  4. Layer 2 non-fungible token (NFT) protocol Immutable has announced a successful $60 million Series B funding raise from several corporate venture firms, including Sam Bankman-Fried’s Alameda Research and Gary Vaynerchuk’s VaynerFund.

  5. According to data tracker, a Bitcoin transaction worth $2 billion was processed this week with a low fee of $0.78. In comparison, fees for an international fiat transfer for the same amount would have cost about $20 million.

    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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Outlook Money
June 2023