Crypto Market Consolidates, Bitcoin Keeps Moving Sideways
China crackdown on crypto trading, as per directive of the State Council and Party Central Committee, continues
Market sentiment turned bullish today with a 2.4 per cent increase in global cryptocurrency market cap, closing at $1.46 trillion at 9 am IST. The total trading volume increased substantially by 15 per cent over the previous day, signaling bullish sentiments among buyers.
But it was another choppy day for Bitcoin (BTC), as it continued to trade near the $34,000 region, registering a slight gain of 1.5 per cent in its price, compared to the previous day. Mid day, BTC negotiated the first resistance level of $34,900 to brush past $35,000, before sliding back to close at $34,300. Data from CryptoQuant, an on-chain market intelligence firm, showed that HODLing tendencies (popular acronym for “hold on for dear life”) among investors are increasing in response to BTC’s current bearish phase. This was apparent in the 9.5 per cent rise in daily trading volume of BTC, which traded well past critical support levels and continues to dominate the market with a share of 44.25 per cent.
Ethereum (ETH) reclaimed the $2,300 mark with a gain of 4.7 per cent and tested its first short term resistance level at $2,350. Strategists are counting on the ETH-BTC pair to break beyond the 0.06 level to give a boost to the ETH price rally. For ETH to break out, BTC would have to move above its 20-week SMA (Simple Moving Average) and reach closer to its ATH (All Time High) value. BTC is currently trading below its 20-week SMA.
Major altcoins such as Chainlink (LINK), Binance Coin (BNB) and Polkadot (DOT) were among the top gainers today, registering a 6-9 per cent gain, while a few other cryptocurrencies lost marginally early morning.
BTC needs to revisit the $36,000 level in the coming days to reverse its bearish phase and provide momentum to the broader crypto market.
Top Gainers today:
- Decentraland (MANA): 27.8%
- KuCoin Token (KCS): 20.3%
- Harmony (ONE): 19.9%
Top Losers today:
- Compound (COMP): -4.1%
- Elrond (EGLD): -3.5%
- Crypto.com Coin (CRO): -2.6%
Analysis includes top 100 coins only as of 9am IST
Crypto News at a Glance:
- China, after recently banning Bitcoin mining facilities, continues to shut down cryptocurrency trading activities in the country. This crackdown on firms that offer crypto-related services enabling crypto trading is as per the directive by the State Council and the Party Central Committee.
- Binance, a global cryptocurrency exchange, has announced it will be temporarily suspending payments in Euro from the EU’s SEPA (Single Euro Payments Area) network.
- Leading Ukrainian e-bank Monobank is gearing up to launch Bitcoin trading for its customers by July. This will enable Monobank users to purchase and sell Bitcoin using a debit card.
- Allied Payment Network, a leading provider of emerging payment technologies, has announced a partnership with NYDIG, an eminent financial services firm to make digital payments based on Bitcoin feasible.
- Shopping.io, a retail platform for consumers, has integrated the SHIB token as payment on its platform.
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