- Bitcoin managed to defend major support zone
- On-chain volume hits multi-month lows
- G7 wants to step up crypto regulation
Most of the major cryptocurrencies were trading sideways last week and investors await near-term catalyst for a bigger move. Price bounced off the recent lows over the weekend as retail traders become more active however overall sentiment remains bearish, especially taking gloomy macroeconomic outlook and recent negative comments from several prominent figures and politicians:
- Galaxy Digital CEO Mike Novogratz believes that altcoin market may further plunge 70% taking account hawkish FED and a bearish trend.
- Bill Gates said he only invests in assets that "deliver returns" and believes that cryptocurrencies do not fall into this category.
- Billy Marcus, one of the creators of Dogecoin, said the cryptocurrency market is a mix of unhealthy optimism, FOMO, panic, scams, gambling, and widespread stupidity. He said he has not been involved in the DOGE project for more than 7.5 years but describes himself as a coin supporter.
- ECB president Lagarde said cryptocurrencies have no value and are not based on anything, which is completely opposite in the case of CBDC's.
- A group of G7 finance ministers pointed to the importance of accelerated legislation to regulate digital assets following the collapse of the UST stable coin and LUNA cryptocurrency.
One need to remember that the economic elite gathers in Davos, Switzerland, from May 22 through May 26 and any remarks can cause increased volatility on the markets.
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Create account Try a demo Download mobile app Download mobile appAccording to CoinMarketCap, the total capitalisation of the crypto market has changed little over the past seven days at 1.29 trillion, Bitcoin's market dominance increased to 44.4%, while an average daily trading volume is registered at $ 67.25 billion.
The cryptocurrency fear and greed index is down 4 points to 10 and remain near all-time lows and some investors may see this situation as a buying opportunity. Source: Alternative.me
Bitcoin
Bitcoin has been moving south for seven weeks in a row as correlation with global stock indexes markets remains high. Source: xStation5
- The mining difficulty of Bitcoin measures the computational power needed to validate BTC transactions will reduce by around 3.3% at its next automated readjustment this week and will the biggest downward shift since July 2021 as lower prices are challenging miners’ profitability.
Miner outflows, which measures how many coins left miner wallets, fell to one-month low on May 23. Source: Glasssnode
- Recent on-chain data shows that BTC trading volumes have been declining since the beginning of the year, with the notable exception of the post-LUNA panic, which may be the sign that price is entering a consolidation period.
On-chain transaction volumes fell to nine-month lows Source: Glasssnode
- Bitcoin put/call ratios for bitcoin open interest hit a 12-month high of 0.72 which suggests rising bearish sentiment among investors.
BTC put/call ratios reached a yearly peak last week. Source: Skew/Delphi Digital
Bitcoin price is trading above psychological support at $30,000 which coincides with lower limit of the descending channel. It seems that only a reversal above resistance around $38,000 would negate the bearish sentiment. On the other hand, should break below the aforementioned support occur, downward move may accelerate towards next support around $25,000 which halted declines at the beginning of the month. Source: xStation5
Cardano
- Despite recent price slump, number of cardano whales, which own between 100,000 to 1,000,000 tokens, increased from 20,562 to 20,637, representing a 0.33% spike.
- This slow growth of the number of wallets holding cardano indicates that most institutional investors are buying the token.
Number of ADA whales is starting to increase. Source: Santiment
CARDANO price fell sharpy in recent months, however buyers managed to halt declines around psychological support at $0.40 after which rebound occur. If bulls manage to uphold momentum, upward correction may reach major resistance at $0.75. Source: xStation5
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