Crypto Crawling Back To Critical Levels After Brief Rally | Daily News 22/6/22

Bitcoin, Ethereum, and the rest of the altcoin markets did their part particularly well spending most of the day yesterday in the green, 🟢 but closing the day at lower points 🔻giving the market ‘breathing room’.

Also, out of the top 50 cryptocurrencies, one altcoin led the charge; Shiba Inu (SHIB) adding 20% on the day yesterday 🚀. Today, however, cryptos are underperforming so far with Bitcoin currently at just under $20,500 and nearing back to that psychological support level.

Although we have reached good levels these last few days, there is some pessimism throughout investors about this week's rally and whether it will hold and continue or break back down to previous lows. All eyes 👀 today will be on the speech by the Federal Reserve Chair, Jerome Powell, to see if there's any more evidence that the economy has taken a more upturn.

As of writing, Bitcoin is currently just holding above the psychological support level of $20,000; after performing well yesterday hitting highs 🟢 of just above $21,600. Selling pressure is increasing, however, and a break below $20k could spark off another similar downturn 🌪️ to which was seen last Saturday.

The current BTC chart on a 1hour time frame shows the support level of $20k and the previous low of around $17,600 last Saturday. Will it return?

Santiment (on-chain analytics data platform) tweet’d 🐤 yesterday that the ratio of Bitcoin’s supply continues to stay low at levels last seen in November 2018. They continue to say, “This is a good signal of limited future selloff risk. In the meantime, Tether (USDT) supply continues skyrocketing on exchanges, indicating greater buying power”. This adds to the fairly bullish sentiment that the crypto market very much needs right now.

Santiment’s fairly bullish Tweet yesterday

Finally, it's important to mention the event happening later today which is the Chair of the Fed Reserve 🏦, Jerome Powell will be giving a testimony today, which many are looking forward to clarification within the US economy, in regards to the recent interest rate hikes and to suggest if there's any evidence that the economy may have some positive days coming, or if it really is ‘doom and gloom’. This will affect the traditional markets to which Bitcoin is closely correlated to!

The second-largest crypto by market cap, Ether, was trading at almost $1200 🟢 at one stage yesterday and is now floating around the $1k level.

The ETH/USDT 1 hour candle chart

The real winner and surprising mover in the last 24-hours 🚀 has been Shiba Inu (SHIB) 🐕 which is one of the very few in the top 50 coins to be in the green! The meme-based tribute to Dogecoin (DOGE) is still performing with more than a 15% move in the last 24-hours while most alts are in the red. This price pump came after the new assurances from Tesla’s CEO Elon Musk supporting DOGE, which is also in the green.

📊 Cryptos' price increases were, as usual, correlated with a pump in equity markets, which rose amongst investors' likely temporary return to riskier assets. The tech-focused Nasdaq climbed 2.5% and the S&P 500 rose just under 2%.

🏛️ However, economists have upped their prediction of a recession from 15% to 30%. Investors will be awaiting 🔎 the U.S. Central Bank Chair, Jerome Powell's, testimony before Congress today (as well as tomorrow) to see Powell’s latest stance and if any clues will be given to boost confidence in investors, or increase further fear.

🙌 To end on some lighter announcements, Colombia’s new president, Gustavo Petro, seems to be a fan of Bitcoin! Petro has previously made positive statements in favour of cryptocurrencies and with taking office this August, many are expecting him to join other world leaders who also have spoken in favour of crypto adoption and have enacted policies on crypto! With El Salvador accepting Bitcoin as legal tender, and Panama approving a crypto adoption bill, will Colombia follow? Well, with more than 52 million people living in Colombia, the country is one of the most active in crypto trading in the region!

Summary:

• After having a great day yesterday, Bitcoin is currently crawling back towards the $20k support level.
• Ether and the alts are following Bitcoin, however a surprise move from Shiba Inu (SHIB) has outperformed all in the last 24 hours.
• Data from ‘Santiment’ indicates there is more buying power in the markets.
• All eyes on the Fed testimony by Powell to judge the confidence (or lack of) the current economy.
• Columbia’s new president Gustavo Petro is pro-crypto!

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