Cryptos Wild Ride Back Up?! | Daily News 5/7/22

Bitcoin and the crypto markets in general had a good green 🟢 last 24 hours with Bitcoin leading the charge after remaining above its $19K resistance and started a fresh recovery wave 🌊 back over that $20K resistance zone! BTC is currently up 6% since yesterday, sitting at just under $20,400 as of writing.

Similarly, most alt coins followed suit creating pace upwards ⤴️ and recovering their recent losses. Ethereum is up over 10% 🟢, breaking the $1,150 resistance sitting at $1,170 as of writing. All in all, a nice recovery so far.

🌎 Elsewhere, Japan and South Korea led the traditional markets in the green, while the S&P 500 and Nasdaq contracts gained about 0.5% from Friday’s close. Of course, little has changed due to the US markets being shut yesterday for their Independence Day 🗽 holiday.

Bitcoin finally turned around on 🗽 Independence Day, having a relief rally to just under $20,400 as of writing, ✔️ having pumped over 6% since yesterday. After rejecting its support of $19K numerous times since the 1st of the month, BTC started a long-awaited recovery to the upside where it is currently finding resistance at around $20,400. If we continue to see positive price action, then it would need to break the $20,500 level to see further upside.

Of course on the flipside, all eyes 👀 are once again on the psychological $20,000 level!

The BTC/USDT chart shows its recent relief rally over the last 24 hours!

An interesting metric 👀 we have been keeping our eyes on recently here at NAGAX is with some on-chain data by Glassnode. The chart below is the MVRV-Z score, which shows when Bitcoin is at its most overvalued or undervalued, relative to its ‘fair value’. When market value is significantly lower than its realised value, it has historically indicated a market bottom 🍑 (in the green zone). And, as history showed us, every time we hit the bottom of a bear market (indicated below), the MVRV value sinks into that green area!

The MVRV Z-Score Chart, shows each time we hit a bottom in the bear markets. Will history repeat itself again?

🙌 Of course, as we always say, past performance is not always indicative of future results. History doesn't always repeat itself, but it does often rhyme. And this data from Glassnode is certainly a bullish 🐂 indication. How long we will sit in this area is another question, but it's good to know where we sit for now!

Ethereum took its run-up ⤴️ once it cleared the $1100 zone and is now hovering over the $1150 newly-formed support, approximately 10% price pump 🟢 in 24 hours. The next major resistance to break is $1180, above which the price could soar to around $1220. But, if we are to see downside correction, then the $1100 support line is the key to look for.

The ETH/USDT chart shows its past day's run to the upside. Can it continue?

🟢 As for the altcoins, we have seen good performance for almost all! Polygon (MATIC) is currently up by over 15% which makes it one of the top performers in the altcoin market, followed by Cosmos (ATOM) which has pumped just over 14% in the past 24 hours.

👍 In general, it has been a good day for the crypto market across the board!

❕ Now, although we have seen the cryptocurrency markets do pretty well, giving many investors that buzz again hoping for brighter greener days, we do need to still take into account the global macroeconomic 🌐💲 environment that is affecting the whole world!

📢 On the 27th July, the FOMC will be announcing what looks like to be the likelihood of another 75 basis points increase in interest rates. With this added stress to the global economy, we will need to see how crypto markets will handle this pressure.

📉 Contracts on the S&P 500 and Nasdaq indexes pushed up on average about 0.3% as US markets are set to return after their national holiday yesterday.

📖 As for economic events, later on today, the Bank of England’s 🏛️ Governor Andrew Bailey will be holding a press conference in regards to the Financial Stability Report that will be released just prior. This report will provide evidence of strains and imbalances to provide further insights into the future of monetary policy.

🕵 Have you seen this week’s upcoming 📅 economic events and forecast article? Keep up to date with what's going on in the world’s economy, and more importantly how it affects crypto!

Summary:

• Bitcoin’s price has climbed once again above the major $20K level.
• Glassnode provided another quality metric showing the bottom could well be in?!
• Ether is also up over 10% in the last 24 hours, with the rest of the alts in the green!
• Future’s market is slightly up, preparing to open for a shorter week.
• Link to our weekly upcoming market events and forecast report to keep you in the loop.

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