Market Direction Uncertain as Bitcoin Slips Below $46,000
Ethereum declines by 6.8 per cent, bounces at $3,150
The broader crypto market continued to lose steam post the liquidation event that occurred early this week as both Bitcoin (BTC) and Ethereum (ETH) lost critical support yesterday. As a result, the total crypto market cap declined by 4 per cent to stand at $2.05 trillion as of 10 am IST. Trade volumes across exchanges saw a modest 1.8 per cent dip.
BTC remains range bound between $44,000 and $47,000 for the third consecutive day. After losing critical support at $46,000 intraday, BTC however managed to bounce from $44,000 level to close the day at $45,200, a 3 per cent drop overall. The major support level for BTCl is expected to come in at $43,300, the 100-day exponential moving average (EMA) while the next major resistance remains at $47,300.
ETH faced rejection at $3,500 to register a 10 per cent red candle intraday. However, ETH had a bounce at $3,150, the 50-day EMA, to close the day at $3,240 with an overall 6.8 per cent decline. ETH continues to enjoy support at $3,000 and $3,150 while the short-term resistance is forming at $3,350.
Terra (LUNA) stole the show today among the top 20 cryptocurrencies by rallying 30 per cent after bouncing off its 20-day EMA support. Avalanche (AVAX) and Algorand (ALGO) were the only others in the list to post gains (of 14 and 8 per cent respectively). Cardano’s (ADA) much anticipated smart contract upgrade will go live tomorrow amid uncertainties regarding scalability of the platform as it lost 6 per cent from the previous day.
The recent price actions of BTC have not been favourable to the bulls. However, whales have bought an additional 44,400 BTC this week, signalling confidence for the long run. BTC needs to stay clear of the 20-week moving average at $42,000 for the altcoins to be in the green.
Top Gainers today:
- Terra (LUNA): 30.0%
- Quant (QNT): 20.8%
- Avalanche (AVAX): 14.0%
Top Losers today:
- Celo (CELO): -15.1%
- eCash (XEC): -13.5%
- Arweave (AR): -13.2%
Analysis includes the top 100 cryptocurrencies only as of 10 am IST
Crypto News at a Glance:
- Digital assets giant Grayscale Investments has announced that Grayscale Bitcoin Cash Trust (BCHG), Grayscale Ethereum Classic Trust (ETCG), and Grayscale Litecoin Trust (LTCN) have become SEC reporting companies. These fund offerings will be regulated similar to publicly-traded companies on Nasdaq.
- Pune-based fintech firm RealX has opened up an investment platform with blockchain-based registry that lets users to digitally invest in high yield, high return properties run by holiday home rental service Tripvillas.
- American fast food company McDonald’s has started to accept Bitcoin at 19 locations in El Salvador. Additionally, Starbucks and Pizza Hut have also started to accept Bitcoin payments.
- Mining firm Argo Blockchain has secured a $25 million loan from digital asset bank Galaxy Digital using Bitcoin as a collateral to further expand its operations.
- Nasdaq, Finnhub and Tiingo will be providing their price feeds to DeFiChain, a DeFi platform built on the Bitcoin network. DeFiChain also offers trading in tokenised stocks.
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