Crypto Analysis

Crypto Market Slips Marginally as Bitcoin Drops to $49,000

Ethereum expected to flip the $3,300 resistance level; most major altcoins suffer losses

Crypto Market Slips Marginally as Bitcoin Drops to $49,000
Crypto Market Slips Marginally as Bitcoin Drops to $49,000

Global cryptocurrency market circled back to $2.13 trillion as of 9 am IST with a 0.5 per cent dip as Bitcoin (BTC) failed to sustain above the $50,000 resistance. However, trade volumes across exchanges surged substantially by 21 per cent today as traders were keen to cash in on BTC’s and altcoins’ growth.

After trading inside a rising wedge pattern for a few days, BTC flipped the $48,000 resistance level to break $50,000 yesterday. However, the bullish sentiment waned temporarily as BTC dropped below and closed the day at $49,200 with a 1.4 per cent decline. Its interim support level is forming at $48,700. Meanwhile, BTC trade volumes soared with a gain of 23 per cent.

Traders expect Ethereum (ETH) to flip the $3,300 resistance level to strong support as BTC's breakout lent momentum to the second-largest cryptocurrency yesterday. If it sustains the uptrend, $3,560 will come into play while lower support levels are at $3,160 and $2,900. ETH is currently trading at $3,320 as of 9 am IST with a 0.4 per cent drop.

Among the top 20 cryptocurrencies, Terra (LUNA) retained the momentum to gain by 12 per cent in the last 24 hours to register it's all-time-high (ATH) of $33. Cardano (ADA), having already breached its previous ATH last week, hit $2.9 intra-day and is looking towards $3 or more in the upcoming days. Solana (SOL) and Binance coin (BNB) registered gains above 3 per cent today. Other key altcoins took marginal losses.

There is widespread euphoria among the crypto enthusiasts as BTC's recent price actions retriggered calls for a push to $100,000 levels by the end of 2021. BTC will have to sustain in the $50,000 to $55,000 band before it can push towards its ATH of $64,000. September is traditionally bearish for BTC and we expect a drop to $45,000 levels before it regains its momentum.

Top Gainers today:

  1. SwissBorg (CHSB): 17.5%
  2. KuCoin Token (KCS): 14.4%
  3. Enjin Coin (ENJ): 13.7%

Top Losers today:

  1. NEAR Protocol (NEAR): -6.4%
  2. Fantom (FTM): -5.5%
  3. Celsius (CEL): -5.3%

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

Source: CoinMarketCap

Crypto News at a Glance:

  1. Digital currency firm Circle has announced that USDC stablecoin reserves (currently amounting to nearly $27 billion) will be 100 per cent backed by cash and US Treasury bonds by September. In July, the firm revealed that USDC’s reserves consisted of cash and debt instruments.
  2. Independent online publisher SubStack, with over 500,000 subscribers, has partnered with payment processor OpenNode to allow users to pay subscription fees and publications to withdraw their earnings using Bitcoin.
  3. Global payments giant Visa has purchased its first non-fungible token (NFT) called CryptoPunk 7610 for $150,000 to help their clients understand the space better.
  4. Google has banned eight cryptocurrency-based apps exploiting users by charging a monthly fee under the false pretext of running a legitimate cloud mining service.
  5. El Salvador has built an infrastructure of 200 ATMs and 50 branches to support conversion of Bitcoin to US dollars with more planned. El Salvador will unveil Bitcoin as legal tender on September 9.

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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March 2023