The cryptocurrency market has experienced a further seven days of falls and volatile price activity. It lost about $50 billion of its overall market capitalization. Altcoins are losing value, while Bitcoin has finished its worst quarter in a decade.
Prior to the price flattening down and altcoins starting to rebound, traders anticipate Bitcoin to swoop below its swing low. According to numerous rumors, FTX was close to agreeing to buy BlockFi for $25 million. BlockFi’s founder and CEO, Zac Prince, rejected the idea of selling the company for $25 million. Through it all, Michael Saylor’s MicroStrategy purchased BTC worth $10 million at an average price of $20.8K.
When compared to BTC, cryptocurrencies underperformed and also experienced similar declines. For instance, ETH has experienced a seven-day decline of 8.5%, matching that of BTC. The decreases in BNB, XRP, ADA, LTC, FTT, and other currencies are comparable. It is still challenging to identify the market bottom at this moment. Although all macro indices for Bitcoin are at record lows and correspond with the formation of the bear market floor in prior cycles. Let’s analyze some cryptocurrency price levels.
Bitcoin plunged below the immediate support level of $20,135 and will continue to face resistance there for the near term. The bears remain active at higher levels like $20,135 and $21,700. The bulls’ tried to build on the momentum and drive the price toward the overhead resistance above $22,000. This is shown by the extended wick on the candlestick.
Up until the BTC price crosses and closes over the $21,700 price mark, we do not consider the midterm outlook to be bullish. Aso, if the $18,672 support level breaks then next level of support will be $17,115.
With an Ethereum loss of more than 40%, the monthly candle closure for June was one of the worst in cryptocurrency history. Overall, ETH had a poor week again, dropping 6%. The cryptocurrency managed to recover to the major obstacle of $1,252 in June after finding support just over $828.
Unfortunately for the bulls, they were unable to push the price higher, and it has since returned to $1,000. If the $1,016 support level is broken, it appears more likely that ETH will continue to decline in price until it reaches $828. In the past, it has reached a bottom after dropping more than 90% from its peak. This would put the cost at about $500, one of the important support levels.
A news release states that a FTT community has raised $7 million (250,000 FTT), which will be transformed into an ecosystem fund. FTT is the native token of the cryptocurrency exchange FTX. The fund will support community-led initiatives in decentralized finance (DeFi) and cryptocurrency education. However, the FTT DAO, a decentralized autonomous organization that is separate from FTX, declares on its website that it adheres to “effective altruism,” a term it credits to the exchange’s CEO Sam Bankman-Fried.
Given the H4 break below the $27 level and the daily timeframe’s bearish signals, FTT may test the $21 region once more. There should be a recovery area in the $27 range for any bearish invalidations. Additionally, traders and investors need to pay special attention to Bitcoin’s movement because FTT has a 58 percent correlation with the BTC. For short-term trading, $27.48 is the most significant resistance level, and $21.23 is the most significant support level.
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