The great bloodbath occurred, the price of Bitcoin (BTC) has dropped by almost 30% in the last 7-days. The general trend across global markets seems to point to the downside. As Bitcoin and Ethereum sank to the lowest level in years, the BitMEX co-founder predicts more incoming losses if the two assets breach crucial support levels. With fears of an inflationary wave sinking portfolios, investors are not only dumping bonds and trimming their equity positions but are also offloading crypto-assets. The current sentiment of pessimism is influencing a dramatic selloff. A lot of traders were liquidated and the bitcoin fear and greed index hit 8 which indicates that great fear has fallen upon traders and investors.
Bitcoin Analysis
The Bitcoin(BTC) price has started the new week on a highly bearish note as it fell 14.5% on an intraday basis. Since last week it has dropped 28.5% and breached some significant support levels as $28000 and recently $24000. This support threatens further downfall if sellers could sustain the price below $24000. During May, the BTC/USDT pair majorly consolidated between the $32500 to $28000 level, reflecting the ongoing uncertainty in the crypto market. Furthermore, the buyers’ failed attempt to recover amid the consolidation allowed sellers to break the $28000 support. On June 12th, the BTC price breached this range support and 0.618 Fibonacci retracement level with a long bearish candle. Thus, the traders witnessed an aggressive sell-off today and tumbled the coin price by 12%. The sudden drop breached $24000 psychological support with a 104% volume spike, indicating a genuine breakdown. Furthermore, if sellers sustain the coin price below the $24000 mark, the downtrend could extend to even lower levels. The coin technical chart represents strong support near the psychological levels, and as the BTC price currently trades at the $23391 mark, the traders can expect nearest demand pressure at $22000 and $20000.
Technical indicator-
The daily-RSI chart represents strong selling sentiment in the market as the indicator slope showcased a failed attempt to sustain above the neutral line and a straight drop into the oversold region.
However, the instant price drop poked through the lower band of the Bollinger band indicator, indicating an unhealthy price movement. Thus, responding to this overselling, the coin price may give a minor pullback or consolidation to stabilize its value.
- Resistance level- $24000, and $28000
- Support level- $22000 and $20000
Ethereum Analysis
The Ethereum(ETH) price is highly affected by the sell-off observed over the global market as it has fallen 34% over the past week. The death spiral tumbles the market value to under the $1300 mark and approaches the upcoming support at $1000, Will Ethereum’s market price dive under $1000, or is a bullish reversal possible? The April-May downfall in ETH/USDT pair took a breather near the $1800 mark. Thus, amid the widespread uncertainty in the crypto market during the second half of May, the altcoin showcased a slow yet steady fall which plunged to a low of $1700. However, the market witnessed high selling pressure last week, pulling the ETH price below $1700. This support breakdown signaled the continuation of the prevailing downtrend and triggered another three days of sell-off. Furthermore, the falling ETH price has violated another significant support of $1400 as it currently trades at the $1236 mark. If sellers could sustain the altcoin below the $1400 mark, the resulting downfall should have a significant chance of hitting the aligned support 0.786 Fibonacci retracement level and $1000 psychological level. Conversely, a potential bullish pullback could drive the ETH price to the $1700 mark before it continues to sink lower.
Technical indicator-
The DMI indicator shows a sharp increase in the ADX line, and the bearish spread between the DI lines represents a rise in correction phase momentum.
The falling trend starting after the bearish takeover near the 20 DMA starts a streak of big bearish candles. Moreover, the DMAs maintain a bearish alignment with no signs of a halt in the falling trend.
- Resistance level- $1400 and $1700
- Support level- $1200 and $1000
Curve (CRV) Analysis
The Curve Dao(CRV) price witnessed an aggressive sell-off by escaping through the consolidation phase shaped as a symmetrical triangle pattern. This downfall tumbled the altcoin by 44% and reached its current trading price of $0.661. Furthermore, a recent fallout from the $0.685 support threatens more pain for CRV holders. Following the April-May Sell-off, the crypto market witnessed uncertainty among the coin traders. The CRV/USDT pair responded to this indecisiveness by forming a symmetrical triangle pattern. This consolidation phase within the continuation pattern allowed traders to stabilize from the prior bloodbath and bolster further price movement. Thus, on June 8th, the CRV price breached the pattern’s support trendline suggesting the resumption of the prevailing downtrend. The pattern fallout accelerated the trapped selling momentum and plunged the CRV price below $1, $0.82, and the $0.685 support level just today. Thus, if the selling pressure persists and sustains below $0.685, the sellers could pull the price 21.5% lower to the $0.5 psychological level. Conversely, if CRV buyers revert the altcoin and give a candle closing above the $0.65 mark, the traders may witness a temporary pullback to the $11 mark before moving down again.
Technical analysis
RSI indicator- The daily RSI slope nosedive into the oversold region indicates the sellers may have overextended on their part, which supports the pullback theory.
EMAs- However, the increased gap between the downsloping EMAs(20, 50, 100, and 200) highlights aggressive selling in the market and suggests the potential pullback could face multiple resistance ahead.
- Resistance levels- $0.685, and $0.83
- Support levels- $0.5 and $0.355
Mana Analysis
This second bear cycle tumbled the MANA price by 44%, where its current trades at $0.755. Furthermore, the altcoin teases a breakdown from minor support of $0.745, indicating the sellers may pull the price back to the May low of $0.63. However, the MANA price potential rebounds from the $0.63 mark would validate this level as genuine support.
Technical indicator
EMA: Since the MANA price witnessed an aggressive sell-off in April, the 20-day EMA has provided constant resistance for coin buyers. Moreover, a bearish sequence among these EMAs(20, 50, 100, and 200) accentuates an overall downtrend.
Vortex indicator: The sharp spread between the VI+ and VI- slopes reflects aggressive selling from traders. Thus, the rising seller’s momentum bolsters the possibility of a $0.75 breakdown
- Resistance level: $0.9, and $1.11
- Support level: $0.75, and $0.6
Helium Analysis
The Helium(HNT) price forming cup and handle pattern shows a recovery opportunity for coin holders. The altcoin currently retests a flipped support of $8.44, which could replenish the bullish momentum $12.5 breakout. A successful breakout should trigger the bullish pattern with its target expected at $16.6. The U-shaped recovery with a minor pullback indicates the formation of a cup and handle pattern. Furthermore, the falling price retested the flipped support of $8.44, and the long-tail rejection attached to today’s daily candle indicates the buyers’ attempt to defend this level. A possible reversal from this support would encourage the HNT price to rechallenge the $12.5 resistance. If buyers breach this overhead resistance, the altcoin could pump 85% higher to the $16.6 level. Conversely, the $8.44 fallout may slump the coin price back to the $6.6 mark.
Technical indicator
Along with the $8.44 breakout, the HNT price breached the midline of the Bollinger band indicator, giving an extra edge to long traders. However, the altcoin moving between the indicator’s upper and midline suggest a possible witch in the trader’s sentiment. A sharp drop in ADX value(28) accentuates losing bearish momentum.
- Resistance levels- $12 and $16.7
- Support levels are $8.5 and $6.5
Conclusion
A liquidity crisis at cryptocurrency lending firm Celsius has investors worried about a broader contagion that could bring down other major players in the market. Celsius recently moved to pause all account withdrawals, sparking fears that it may be about to go bust. The company lends out clients’ funds similar to a bank — but without the strict insurance requirements imposed on traditional lenders. Crypto investors fear the possible collapse of Celsius may lead to even more pain for a market that was already on shaky ground after the demise of $60 billion stablecoin venture Terra. Celsius was an investor in Terra but says it had “minimal” exposure to the project.
Venture capital firm Three Arrows on Tuesday swapped about $33 million worth of Lido Staked Ethereum (stETH) for Ethereum on DeFi platform Curve. They are also aiming at dumping ethereum. The Crypto market is crashing heavily as Coinbase, Microstrategy, Celsius and other institutional investors are in a massive loss and even at a risk of liquidation if further downside occurs.
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A former professional rugby player, Adam S. Tracy brings over twenty years’ experience as an attorney, consultant and dealmaker with a particular focus on cryptocurrency, digital products, payments and immersive corporate structures. As an accomplished executive and advisor to blockchain merchants and stakeholders, Adam has proven himself as a results oriented, decisive leader with proven success advising early market entrants, technology adapters, as well as established participants across a wide range of blockchain verticals. Adam Tracy’s attack-first personality allows him to excel in dynamic, demanding environments including complex corporate negotiations, distressed environments and regulatory investigations.
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Adam S. Tracy earned his Bachelor of Science in Computer Applications and Bachelor of Science in Finance from the University of Notre Dame. He subsequently earned his Masters in Business Administration from the DePaul Kellstadt Graduate School of Business, while concurrently earning his Juris Doctorate from the DePaul College of Law. Adam lives outside Los Angeles with his with his wife, son, four dogs, and two cats.
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