Alexander Kuptsikevich
FxPro Financial Services Limited
Market picture
Bitcoin selling intensifies as it touches the $28K level. The leading cryptocurrency has lost 2.2% over the past 24 hours, but this is a minor pullback after a more than 40% gain since 10 March.
This pause will allow Bitcoin to "cool down" and create opportunities for another leg up. Nevertheless, the risks of a deeper correction remain elevated, with the first significant line of defence likely to be the $26K (76.4% of the last rally) and the second at $25K (61.8% of the rally).
Interestingly, Ethereum has had a less impressive flight and remains heavier, pulling back to $1730 (76.4% of the original rally). Above $1700 is also the area of previous local highs for the second-largest cryptocurrency.
We should be prepared for increased market profit-taking before the Fed's decision. The central bank must choose between fighting inflation (negative for crypto) and supporting the banking system (positive for markets).
According to CoinShares, investments in crypto funds fell by $95 million last week, marking the sixth consecutive week of outflows. Bitcoin investments decreased by $113 million and Ethereum by $13 million. Investment in funds that allow shorting of bitcoin increased by $35 million.
News background
"Bitcoin is volatile but has never needed a bailout like banks. It has no CEO. No one can print coins out of thin air," said Changpeng Zhao, head of Binance.
Bitcoin has entered the bull market phase, according to CryptoQuant founder Ki Yun-Ju, who cited optimistic signals from on-chain indicators.
Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.