Crypto Analysis

Crypto Market Stays Volatile, Bitcoin & Ethereum Skid

After a high of $50,540 amid its attempts to break past $51,500 resistance, BTC stood at $49,790

Crypto Market Stays Volatile, Bitcoin & Ethereum Skid
Crypto Market Stays Volatile; Bitcoin & Ethereum Skid

The global crypto market experienced another volatile day, with Bitcoin (BTC) moving sideways and unable to hold $50,000 as the day closed. The global crypto market cap had retracted by a modest 0.6 per cent to $2.27 trillion till Sunday morning, with trade volume across exchanges dipping by 9 per cent to stand at $126 billion.

After a high of $50,540 amid its attempts to break past $51,500 resistance, BTC stood at $49,790, a 1 per cent drop, closer to its daily low of $49,550. BTC is expected to test its 20-day EMA soon, while $46,300 is the next support level below. The BTC dominance is now at 41.3 per cent, down by 0.2 per cent, while its trade volume dropped by 12 per cent today.

Ethereum (ETH) has started consolidating after getting rejected at its $3,950 resistance. It shed 1.4 per cent today to close at $3,865. ETH is expected to undergo more corrections before finding support around the $3,380 region unless BTC breaks $51,400 in near future.

Among the top 20 cryptocurrencies, Polygon (MATIC) and Internet Computer (ICP) had strong gains of more than 15 per cent while most others registered a modest drop of up to 3 per cent. Solana (SOL) dropped by 5 per cent, halting its spectacular rally in the last one month.

BTC maintaining above $48,000 is critical for top altcoins to sustain their gains from the previous three weeks. BTC is likely to hold support at its 20-week moving average near $42,000-43,000 if it drops in the upcoming weeks.

Top Gainers

  1. Quant (QNT): 27.3%
  2. Polygon (MATIC): 17.7%
  3. IOTA (MIOTA): 17.1%

Top Losers

  1. Revain (REV): -7.7%
  2. FTX Token (FTT): -7.6%
  3. Arweave (AR): -7.1%

Analysis includes the top 100 cryptocurrencies only as of 10 am IST

[Source: CoinMarketCap]

Crypto News at a Glance

  1. The US Securities and Exchange Commission (SEC) is reportedly investigating the development firm behind decentralized cryptocurrency exchange, Uniswap. Its native token, UNI, is currently ranked 11th among cryptocurrencies.
  2. Nigeria’s central bank has partnered with Barbados-based fintech firm Bitt Inc. to develop its proposed central bank digital currency (CBDC), e-naira.
  3. Argentina-based trading platform, IOL invertironline, is reportedly planning to offer cryptocurrency exposure to its 200,000 user base in addition to stock trading.
  4. Franklin Tempton, world's largest independent asset manager, is looking for two mid-senior level experts to lead its crypto trading and research efforts.
  5. South Africa’s top regulator has issued a warning to investors dealing with Binance having barred the crypto exchange from providing financial services in the country.

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Outlook Money
May 2023