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TA: Bitcoin Reclaims $30K, Why Bulls Face Uphill Task

Bitcoin started a fresh increase from the $28,500 support zone against the US Dollar. BTC must clear $30,600 to move further into a positive zone. Bitcoin formed a base above $28,500 and started a fresh increase. The price is now trading above the $30,000 level and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could gain bullish momentum if there is a clear move above $30,600. Bitcoin Price Is Facing Resistance Bitcoin price found support near the $28,500 zone after a steady decline. A base was formed near $28,600 and started a fresh increase. There was a clear move above the $29,500 resistance zone and the 100 hourly simple moving average. The bulls even pushed the price above the $30,000 resistance zone. However, they are now facing an uphill task near the $30,600 zone. There is also a major bearish trend line forming with resistance near $30,400 on the hourly chart of the BTC/USD pair. A high is formed near $30,721 and the price is now consolidating gains. The price is trading above the 23.6% Fib retracement level of the upward move from the $28,590 swing low to $30,721 high. An immediate resistance is near the $30,400 level. The next major resistance is near the $30,600 level. Source: BTCUSD on TradingView.com A clear move above the $30,400 and $30,600 resistance levels might start a fresh increase in the near term. The next key resistance could be near the $31,500 level, above which the price might gain bullish momentum. Fresh Decline in BTC? If bitcoin fails to gain pace above the $30,600 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $30,000 level. The first major support is near the $29,800 level and the 100 hourly SMA. The next major support sits near the $29,655 level. It is near the 50% Fib retracement level of the upward move from the $28,590 swing low to $30,721 high. A downside break and close below the $29,650 support might start another decline. In the stated case, the price could drop towards the $28,500 level. Technical indicators: Hourly MACD – The MACD is now slowly losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $29,800, followed by $29,650. Major Resistance Levels – $30,600, $31,200 and $31,500.

Do Kwon Dissolved Terraform Labs Korea Days Before Collapse of Terra LUNA, UST

Official records show Do Kwon dissolved Terraform Labs Korea, closing down its headquarters and sole branch just days before the collapse of terra crypto (LUNA) and stablecoin terrausd (UST). Do Kwon Shut Down Terraform Labs Korea Before UST and LUNA Fallout Terraform Labs founder Do Kwon reportedly closed down his company in Korea days before […

More Stress For El Salvador As Bitcoin Dips To $29,000

El Salvador has been on the radar of leading financial and economic institutions since it made Bitcoin a legal tender. It has mainly become a spectacle as cryptocurrency supporters and non-supporters alike watch on to see how this plays out. El Salvador which had made good on its bitcoin promise had made multiple BTC purchases at close to the height of the market last year and some this year. The country now holds at least 2,300 BTC since it made its first purchase in September of 2021. Now that the price of Bitcoin is down significantly since the country had begun buying, how is this playing out for the North American country? El Salvador And Its Bitcoin El Salvador had bought another 500 BTC in May after the market had declined to $1.68 trillion. These bitcoins which were purchased at an average price of $30,774 had brought the country’s holdings to 2,301 BTC so far. It would be the lowest price that the country had been able to purchase the digital asset and given that this purchase was only a small part of its larger holdings, the country still remains in loss from its multiple purchases. Related Reading | Funding Rates Fall To Yearly Lows Following Bitcoin’s Fall Below $29,000 The first time El Salvador had bought some BTC in September, it had been trading above $44,000. What this means is that the digital asset is down about 45% since then. Its entire stash is now worth about $70 million at present prices. So even with the dollar cost averaging method that has seen the country buy BTC at different prices, it is still down 28% from its total purchase value. BTC falls to $28,000 | Source: BTCUSD on TradingView.com The move to accept BTC has not only proved controversial on just the bitcoin price side, but it has also affected the country’s ability to receive international aid in the form of loans. Last year, it was made public that the country had been looking to secure $1.3 billion from the IMF. However, this does not seem likely to happen given that the IMF has expressed its disdain for the adoption of bitcoin as a legal tender.  It has advised the country to remove the digital asset as an official national currency, citing that this could cause problems for the economy in the long-term, revealing that the current account deficit for El Salvador’s remittance and the external financing-reliant economy is estimated to drift around $2 billion for the next three years. But President Nayib Bukele has turned a deaf ear to this. Related Reading | Crypto Carnage Causes Flight To Bitcoin Safe Haven, Dominance Demonstrates El Salvador is a country that is heavily reliant on remittances from citizens abroad who send money home to loved ones. For this reason, the president has said that BTC will greatly help make these remittances easier and cheaper for its residents. On the price side, the president is not much bothered by the recent decline either. He has said in the past that he expects the price of the digital asset to reach $100,000 sometime in 2022. If this happens, then the country will be in significant profit from its BTC holdings. Featured image from Coingape, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… 

Panama President Mulls Crypto Bill Approval Due to Money Laundering Concerns

The president of Panama, Laurentino Cortizo, has declared he will not sign the recently approved cryptocurrency bill passed by the National Assembly of the country in its current form. Cortizo stated that one of his main concerns about the bill is the stance it takes regarding money laundering activities and crypto. Cortizo may approve some […

Digital Collectible Owners Continue to Take Loans out Using NFTs as Collateral

While non-fungible token (NFT) collectibles have become a hot commodity over the last 12 months, a number of NFT owners are taking loans out against their NFTs. This month, a project called Nftfi has facilitated $25.6 million in NFT loans so far, and last month the lending marketplace recorded nearly $50 million in NFT loans. […

Bitcoin Selling Pressure Continues As Long-Term Holder SOPR Spikes Up

On-chain data shows the Bitcoin long-term holder SOPR has recently observed spikes, suggesting that this cohort is still continuing to sell. Bitcoin Long-Term Holder SOPR Spiked Up When Price Crossed $30k As pointed out by a CryptoQuant post, selling pressure in the market still looks to be high as long-term holders are also looking to sell. The “spent output profit ratio” is an indicator that tells us whether the overall market is selling Bitcoin at a profit or loss right now. The metric works by checking the on-chain history of each coin being sold to see what price it last moved at. It then divides the current price (that is, the selling price) with the last price. When the value of this ratio is greater than one, it means investors are, on an average, selling at a profit at the moment. On the other hand, values of the indicator less than one imply that the Bitcoin market as a whole is realizing loss currently. A cohort of BTC investors is the “long-term holder” (LTH) group, who hold their coins for at least 155 days before selling. Related Reading | Bitcoin Bearish Signal: Whales Ramp Up Dumping The “LTH SOPR” tells us about profit or loss realization from specifically this group. Here is a chart that shows the trend in this indicator (EMA 144) over the past month: It seems like the value of the metric has observed some spikes recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin long-term holder SOPR (EMA 144) had a couple of spikes in the last few days. One took place on 13th May, while the other occurred on the 18th. During both these instances, the price had crossed $30k shortly before. Related Reading | Funding Rates Fall To Yearly Lows Following Bitcoin’s Fall Below $29,000 This means that LTHs have been feeling pressure in the current market to realize their profits as soon as the price reaches above $30k. Usually, Bitcoin long-term holders are the least likely cohort to sell. So, selling pressure from this group can prove to be bearish for the crypto’s price. BTC Price At the time of writing, Bitcoin’s price floats around $29.4k, up 3% in the last seven days. Over the past month, the crypto has lost 28% in value. The below chart shows the trend in the price of the coin over the last five days. Looks like the price of the crypto has seen some decline over the past two days | Source: BTCUSD on TradingView Over the past week, Bitcoin has mostly consolidated around the $30k mark, failing to gain any ground above the mark. As long as selling at the level continues, the crypto won’t be able to make any real recovery. Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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