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- Bitcoin Over & Under $20K Once Again, More Bullish? | Daily News 6/7/22
Bitcoin Over & Under $20K Once Again, More Bullish? | Daily News 6/7/22
Bitcoin and the overall cryptocurrency markets took a bit of a breather 😮💨 since yesterday. BTC has resumed its over/under performance at the $20,000 mark, proving once again it is the current gauge ⏲️ of this cycle’s bear market! Altcoins also followed suit with a more or less relative sideways ↔️ price action.
Elsewhere in the traditional markets, tech-heavy Nasdaq climbed ⬆️ up 1.8% in the last 24 hours. Some investors may have found ‘silver linings’ as some data may be suggesting that the U.S. economy may be slowing down but the Fed’s aggressive stance 👹 is still of concern for recession.
🤠 Let's explore!
👑 King of the crypto hill, Bitcoin, has been making its attempts to set confidence back in the hands (or hoofs) of the bulls 🐂 pushing the price up to over $20,700 then getting rejected and is now playing the push/pull game over the psychological $20K level. BTC has now formed a bullish trend line and its key resistance level to break is the $20,500 level to see further upside 📈 potential.
However, if Bitcoin fails to reach and break the $20,500 resistance level, then we could continue to see the price move further down 📉 and a major support level is over $19,300. A close below this level could see an increase in selling pressure, which could drop the price to below $19K.
The BTC/USDT hourly chart shows the relief rally and breather of price action.
Diving further into on-chain data, according to Glassnode’s ‘Long- and Short-Term Holder Supply in Profit/Loss’ (pictured below), the amount of Bitcoin supply in a loss 🔻 has hit 48.1% of all coins held outside exchanges. Out of these coins, almost 60% of them are held by Long-Term Holders (28.6% of the total). 👉 What is important to take from this, is that these metrics are at similar levels to the Nov-Dec 2018, and March 2020 capitulation phases, where BTC found strong resistance at bottoms and then climbed higher!
The data from the Supply in profit/loss chart by Glassnode.
🥈 The second-largest crypto by market cap, Ethereum was trading at around $1128 as of writing, after reaching a price of around $1170 yesterday evening following BTC’s sideways price action for now.
🔴 As for the rest of the altcoins, the majority are sitting in the red having dropped in price by a few percent over the last 24 hours. But once again, a certain altcoin has stood out ✊ from the rest in the last day, and that is our very own NAGA Coin (NGC) 🥳 taking the top spot for best performer having moved up in price by almost 7%! This is most likely due to investors finally realising the potential of 💸 investing and trading with NAGAX, including staking. With staking, users can earn interest on their held coins without the hassle of having to trade. If you haven’t started yet, come and check us out!
📉 The stock market’s rally sold off on Tuesday morning however some managed to rebound to the day with ↕️ mixed sentiments. The Dow actually fell about 0.4%, the S&P 500 climbed 0.2% but the Nasdaq was able to jump up by 1.75%.
🏛️ The Federal Reserve is still expected to hike ⤴️ interest rates once again by 75 basis points at the end of July meeting, and 50 basis points following that. And time will tell ⏳ how the cryptocurrency will react.
👀 We have also seen the DXY (Dollar Currency Index) hit 19-year highs 🔝 of 106.8 after violating a three-week-old high of 105.79, as recession fears 😨 increase on the Bank of England’s statement on the global outlook.
📋 This was provided by the Bank of England’s Financial Stability Report, announcing that prices of essential goods have risen sharply ↗️ in the UK and globally, and the outlook for growth has gotten worse. In the official report, they stated:
“Like other central banks around the world, we have increased interest rates to help slow down price increases. Markets have been volatile and financing conditions have tightened. These higher prices, weaker growth and tighter financing conditions will make it harder for households and businesses to repay or refinance debt. Given this, we expect households and businesses to become more stretched over coming months.”
This follows the same narrative the central banks 🏛️ globally are announcing, proving that there could be more volatility in the global markets!
📖 For what economic events to look out for today, there will be the EU Economic Forecasts, the US JOLTS Job Openings as well as the FOMC minutes! The cause and effect of these reports should prove some more volatility in the market is on its way.
Are you keeping tabs 🕵 on our 📅 economic events and forecast article? Make sure to keep up to date with what's going on in the world’s economy, and more importantly how it affects crypto!
- Bitcoin’s dip then recovers, holding on to the infamous $20K support.
- All altcoins follow suit, but a standout is NAGA Coin (NGC) being one of the top performers.
- Equities markets showing mixed results but DXY breaking 19-year highs!
- BofE’s Financial Stability Report brings more uncertainty to the market.
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