With the broader market hanging on the balance of Bitcoin’s recovery, alts such as Binance Coin, THETA and Litecoin awaited breakouts from their patterns but lacked clear direction in terms of a price swing.
Binance Coin’s recovery has been steady since the 19 May crash. While sellers have been prepared for corrections, BNB has managed to find higher support levels after two rallies. Since $434 has not yet been breached, BNB formed an ascending triangle on the 12-hour timeframe. While the pattern does generally see a break to the upside, a bearish broader market complicated matters. In a bullish outcome, BNB looked set for a 15% jump towards a resistance zone between $486 and $527. Lower highs on RSI were also a positive sign.
However, a bearish outcome cannot be discounted considering recent movement of the market leaders. Losing out on the bottom trendline could see BNB head back towards $348-support. According to MACD’s histogram, bullish momentum was actually declining over the past few days even though the Fast-moving line was above the Signal line.
Litecoin formed a symmetrical triangle but once again, direction of a breakout was not clear cut. A move above the upper trendline could result in 25% price rally towards a critical resistance zone at $240. On the other hand, a breakdown could drag LTC all the way to its demand zone between $116 and $141, resulting in a 30% retracement.
According to OBV, selling pressure has been kept at bay since the 19 May crash. If selling pressure dissipates, a favorable outcome can be expected moving forward. However, a breakout might take a few more days to culminate as ADX has been declining and a move below 25 would indicate lateral movement.
THETA’s rise above $8.21 was an important one as it cleared its first major resistance level post 19 May crash. However, its path head was a crucial one as the cryptocurrency eyed major swings over the coming days. Since THETA traded within an up-channel, the price was projected to break down from this bearish pattern. Losing out on $8.21 support could trigger a sharp downwards move and possibly towards $6. On the other hand, breaching past $11 could see an upwards swing.
With bullish momentum on the up after a twin peak setup, buyers were tipped to enforce a result in their favor. An ADX reading above 25 meant that a strong trend was present in the market.
QNT Technical Analysis: Price Below the Fibonacci Pivot Point of $72.67
QNT price has tested and fallen below the 23.6% FIB retracement level of $72.18. The price may soon fall below the 23.6% FIB extension level of $69.82 as well. Thus, as of now, the bearish forces are strong. Therefore, we can expect the price downtrend to continue today as well as tomorrow.
The Quant Network is the first blockchain network to develop the Overledger DLT gateway – an enterprise-grade DLT (Distributed Ledger Technology) gateway. This gateway ensures enterprises achieve interoperability across multiple blockchains systems and DLTs. It also aids in cross-chain interconnectivity. It is a speedy, straightforward, and secure ecosystem. QNT is the native token of this network. Technical Analysis of QNT is as follows.
On Jun 12, 2021, QNT opened at $51.71. On Jun 18, 2021, QNT closed at $71.01. Thus, in the past week, the QNT price has increased by roughly 37%. In the last 24 hours, QNT has traded between $71 – $76.
The MACD line has turned negative while the signal line is still positive. In other words, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum has turned bearish. Hence, we can expect the price to start falling.
Currently, the RSI indicator is at 25% – deep into the ‘oversold’ region. It faced rejection at 60% and fell to the current level. Hence, selling pressures are very high. Heavy offloading of crypto will push its price further down. It is a good time for traders to go long.
Besides, the OBV indicator has also fallen steeply. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the QNT price. In short, all three indicators have shown bearish signals.
Currently, the price is below the Fibonacci pivot point of $72.67. It may soon fall below the first Fibonacci pivot support level of $70.76. If the bears remain strong till day end, then the price may fall below the subsequent support levels of $69.58 and $67.67, respectively.
The price has tested and fallen below the 23.6% FIB retracement level of $72.18. The price may soon fall below the 23.6% FIB extension level of $69.82 as well. Thus, as of now, the bearish forces are strong. Therefore, we can expect the price downtrend to continue today as well as tomorrow.
The Bitcoin price nowadays is undergoing a phase of extreme uncertainty as the surge appears to be a fake breakout. And hence it has badly impacted the other crypto assets as well, which may include Dogecoin price too. DOGE price which maintains a stagnant trend in the past couple of months had showcased a slight …
The Bitcoin price nowadays is undergoing a phase of extreme uncertainty as the surge appears to be a fake breakout. And hence it has badly impacted the other crypto assets as well, which may include Dogecoin price too. DOGE price which maintains a stagnant trend in the past couple of months had showcased a slight uptrend, yet failed again.
The recent price movement suggests the continued downtrend as the dogecoin bulls did not showcase their power after the false breakout. And hence the price is struggling to surge above $0.3 levels. The depleting volume also points out towards the lessened activity on the platform as many may have snubbed DOGE after recently speculated manipulation.
Now, considering the present scenario, two possible price movements can be overseen. One, the bulls remain passive and allow the price to tank to the lower levels. In such case, the price may fail to rebound above $0.3. And the revisit the next support levels around $0.22 to $0.21. And after this plunge, the price may take quite a long time to regain the lost positions above $0.3. However, reaching towards ATH levels may appear a milestone which may not occur in near future.
On the other hand, if the bulls get accelerated, which is mandatory at the press time, the price may successfully clear $0.3 support levels. And later move upwards to attain the next target around $0.38 to $0.4. However, the ATH or $1 target still remains off the beaten track.
Collectively, the dogecoin price appears to trade within a decisive phase as the bulls need to get aggregated. Else a major slump for the DOGE price is on the way which may take a long time to retrace.
The ghost of stock market crash is back again to haunt Bitcoin (BTC).
It happened last in March 2020. Back then, the prospect of the fast-spreading coronavirus pandemic led to lockdowns across developed and emerging economies. In turn, global stocks crashed in tandem, and Bitcoin lost half of its value in just two days.
Meanwhile, the U.S .dollar index, or DXY, which represents the greenback’s strength against a basket of top foreign currencies, has now climbed by 8.78% to 102.992, its highest level since January 2017.
The huge inverse correlation showed that investors dumped their stocks and Bitcoin holdings and sought safety in what they thought was a better haven: the greenback.
More than a year later, Bitcoin and stock markets again wrestle with a similar bearish sentiment, this time led by a renewed demand for the U.S. dollar following the Federal Reserve’s hawkish tone.
Namely, the U.S. central bank announced Wednesday it will start hiking its benchmark interest rates by the end of 2023, a year earlier than planned.
Lower interest rates helped to pull Bitcoin and the U.S. stock market out of their bearish slumber. The benchmark cryptocurrency jumped from $3,858 in March 2020 to almost $65,000 in April 2021 as the Fed pushed lending rates to the 0%-0.25% range.
Meanwhile, the S&P 500 index rose more than 95% to 4,257.16 from its mid-March 2020 peak. Dow Jones and Nasdaq rallied similarly, as shown in the chart below.
And this is what happened after the Federal Reserve’s rate-hike announcement on Wednesday…
Meanwhile, the U.S. dollar index jumped to its two-month high, hinting at a renewed appetite for the greenback in global markets.
Popular on-chain analyst Willy Woo said on Friday that a stock market crash coupled with a rising dollar could increase Bitcoin’s bearish outlook.
“Some downside risk if stonks tank, a lot of rallying in the DXY (USD strength) which is typical of money moving to safety,” he explained.
Michael Burry, the head of Scion Asset Management, also sounded the alarm on an imminent Bitcoin and stock market crash, adding that when crypto markets fall from trillions, or when meme stocks fall from billions, the Main Street losses will approach the size of countries.
“The problem with crypto, as in most things, is the leverage,” he tweeted. “If you don’t know how much leverage is in crypto, you don’t know anything about crypto.”
Burry deleted his tweets later.
Some bullish hopes
Away from the price action, Bitcoin’s adoption continues to grow, an upside catalyst that was missing during the March 2020 crash.
On Friday, CNBC reported that Goldman Sachs has started trading Bitcoin Futures with Galaxy Digital, a crypto merchant bank headed by former hedge fund tycoon Mike Novogratz. The financial news service claimed that Goldman’s call to hire Galaxy as its liquidity provider came in response to increasing pressure from its wealthy clients.
Damien Vanderwilt, co-president of Galaxy Digital, added that the mainstream adoption would help Bitcoin lower its infamous price volatility, paving the way for institutional players to join the crypto bandwagon. Excerpts from his interview with CNBC:
“Once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it.”
Referring to the question “are we in a bear market?” Woo said that Bitcoin adoption continues to look healthy despite the recent price drop. The analyst cited on-chain indicators to show an increasing user growth and capital injection in the Bitcoin market.
Of primary interest is capital rotation from stablecoins back into the crypto markets (I’ll say that’s mainly BTC since alt coins are reducing in dominance).
He also noted that the recent Bitcoin sell-off merely transported BTC from weak hands to strong hands.
“My only concern for downside risk is if we get a major correction in equities which will pull BTC price downwards no matter what the on-chain fundamentals may suggest. Noticing USD strength on the DXY, which suggest some investors moving to safety in the USD.”
Uniswap Reaches Bearish Exhaustion as Sellers Threaten to Short
Uniswap's (UNI) price has fallen to $19.58 low and pulled back. The downtrend has reached bearish exhaustion as buyers emerge in the oversold region. The current downturn has been ongoing as price makes a series of lower highs and lower lows.
Uniswap’s (UNI) price has fallen to $19.58 low and pulled back. The downtrend has reached bearish exhaustion as buyers emerge in the oversold region. The current downturn has been ongoing as price makes a series of lower highs and lower lows.
On the upside, Uniswap is rising as price reaches the oversold region. If the UNI rebounds above the current support, the price is likely to rally to retest the lower high of $25. And if buyers are successful at a recent high, the market will rise to the previous high of $30. Conversely, if the current upward move faces rejection at the recent high, the UNI/USD will further decline to $16.50.
Uniswap indicator reading
UNI is at level 38 of the Relative Strength Index period 14. It indicates that the crypto is in the downtrend zone and capable of falling on the downside. The crypto has fallen below the 20% range of the daily stochastic. It indicates that UNI is in the oversold region and that the selling pressure has reached bearish exhaustion. Buyers are likely to emerge.
Major Resistance Levels – $55.00 and $57.00
Major Support Levels – $22.00 and $20.00
What is the next direction for Uniswap?
UNI/USD has been in a downward move. Meanwhile, on June 4 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the altcoin will fall to level 2.0 Fibonacci extension or level $20.98. From the price action, UNI has surpassed the 2.0 Fibonacci level as the altcoin approaches the $16 low.
Disclaimer. This analysis and forecast are the author’s personal opinions, are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.