Kategorie: Crypto Analysis

Crypto has come into focus over the last few days after a major crash. Most coins have been on free fall, LINK included. But contrary to the doom and gloom out there, a complete crypto collapse is highly unlikely. LINK in particular has a real chance of stopping the downtrend, but it will need to hold a very important support level. Here are some facts to keep in mind:

• LINK dropped nearly 40% in two days this week

• The coin has recovered a bit from these losses but still remains weak

• If LINK can maintain the price above $6.10, it can avert a major downside

Data Source: TradingView 

Will the support hold?

The big question for most bulls is whether there is enough confidence in the market to avert another sell-off. After the Fed made a commitment to fight inflation with an aggressive interest rate hike, risk assets saw a major boost. But there are fears this short-term rally is not going to last.

So, for LINK to maintain the $6.10 support, it will need to at least avoid a 10% decline over the coming few days. While this is possible, based on overall sentiment in the market, there is still a risk that the support could be breached.

If this happens, the next strong support will be around $4.5. This would represent a 40% drop from the current price. But if $6.10 holds and the price action consolidates around it, LINK could surge above $8 by the end of trading this week.

Major Ecosystem updates for LINK

Although the downtrend in recent weeks has been quite disappointing, LINK has been doing very well in building up its ecosystem. New plans on staking have already been rolled out, and the project has signed major partnerships. 

From a fundamental point of view, things are looking good for LINK. The only thing needed now is for sentiment to turn around in the broader market.

The post Chainlink’s downtrend could stop if this support holds appeared first on CoinJournal.

Bitcoin hit an 18-month low over the last three days. The coin is seeing its worst sell-off in 2022 as broader weakness in the market deepens. We have seen some recovery though but it’s still not enough to reverse the downward trend. BTC could bottom with one more sell-off. Here are some pointers:

• BTC has managed to stay above $20,000 despite major pressure.

• The coin however has very limited upward momentum.

• Once the $20,000 is breached, there is very little support below that.

Data Source: TradingView

Where will BTC bottom?

Many analysts agree that the crypto correction we have seen in 2022 is far from over. The market has been quite weak, and for BTC the downtrend is inevitable. For now, the coin has shown a bit of resilience in the face of major pressure. But this will not last long. 

In fact, when you look at the long-term chart patterns, there is very little support for BTC below $20,000. The coin could easily end up bottoming at $12,000 in this bearish cycle. However, we do not think there is any downside below $12,000. So, a complete BTC crush is not probable.

Also, once the coin finds sufficient support at $12,000, it will likely attract some dip buyers who want to cash in on the drop. Besides, the $12,000 price is not that far away from the current price. It could in fact come much sooner than we expect.

Where will Bitcoin go long-term?

Right now, it’s very hard to predict where the coin will end up once 2022 is over. But it’s important to get ready for a bumpy ride. It will be hard for bitcoin to hit $50,000 this year.

This was one of the most optimistic predictions by most analysts. Instead, the coin’s fair value will likely stabilize around $36,000 or thereabout. But this will also be determined by how fast headwinds in the market ease.

The post Bitcoin could finally bottom after one more dump appeared first on CoinJournal.

The crypto market has quite literally crashed today. Everything is red as investors steer clear of risk assets for now. But despite this, it seems Dogecoin is attracting a lot of whale buyers. In fact, there is an emerging pattern of buying DOGE dips among large crypto wallets. Here is what you need to know:

• Whale accounts have purchased over 400 million Dogecoins worth $31 million in recent months

• Also, thousands of large wallets on the Binance Smart Chain hold DOGE in their portfolio

• This comes even as the meme coin dips sharply.

Data Source: TradingView

Why are Whales buying Dogecoin?

Under such market conditions, it doesn’t make sense to buy high volatile coins like DOGE. But for most large wallet holders, it seems the DOGE dip is just the perfect chance to get the coin cheaply. In fact, analysts believe that DOGE will continue to slump in the near term. 

The coin has tanked by 20% over the last 24 hours alone and is currently hovering above a crucial $0.054 support zone. It is highly likely that the coin will fall below this zone and head into a downward surge. 

DOGE has also lost nearly 95% of its value from its all-time high. But despite this, we are likely going to see a change in investor sentiment in the medium term. As such, whales are ready to be patient and ride out the bleeding right now with the hopes of a future major rally.

Should you follow whale money?

It is often a good idea to follow large wallets in your investments. But on DOGE, things are a bit complicated. For example, we are now in the middle of a very volatile period in the crypto industry. 

The value of many coins is very unpredictable. For this reason, buying DOGE now could expose you to a huge downside if the market fails to snap out of the current downtrend.

Learn where and how to buy Dogecoin here.

The post Whales buy over 400 million Dogecoins in the current dip appeared first on CoinJournal.

The cryptocurrency market has performed well in the last 24 hours after a poor start to the week.

The cryptocurrency market has performed well over the past 24 hours. The market has added more than 5% to its value so far today, with the total market cap now above the $900 billion mark once again.

Bitcoin, the world’s leading cryptocurrency, is up by nearly 5% today and currently trades above $21k per coin. Ether is also trading above $1,100 per coin after rallying by over 9% in the last 24 hours.

SAND, the native token of The Sandbox ecosystem, has also been performing excellently in the last few hours. 

SAND has added more than 10% to its value over the past 24 hours as the broader cryptocurrency market embarks on a slow recovery.

The Sandbox’s ongoing positive performance can be attributed to its partnership with Lionsgate. The Sandbox announced its partnership with Lionsgate, a global content leader, and its partner Millennium Media, in a Medium post on Wednesday. 

The partnership will see the entities develop “Action City”, a dedicated LAND that will serve as a thrilling entertainment destination featuring voxelized characters and items.

Key levels to watch

The SAND/USD 4-hour chart is currently bearish despite The Sandbox performing well in the last 24 hours. The bearish trend in the past couple of days negatively affected SAND’s broader performance.

The MACD line remains below the neutral zone but has been moving towards the positive region thanks to the ongoing rally. The 14-day RSI of 44 shows that SAND is no longer in the oversold region. 

At press time, SAND is trading at $0.864 per coin. If the rally continues, SAND could surge past the first major resistance level of $1.02 before the end of the day.

However, the second major resistance level at $1.13 should provide a tougher challenge for the bulls to overcome in the near term.

If the bears regain control of the market, SAND could decline below the $0.80 mark for the second time this week. 

The post Here is why SAND is up by more than 10% so far today appeared first on CoinJournal.

As the financial world battles inflation and rising geopolitical uncertainties, bearish sentiment has flooded the Bitcoin market. 

Bitcoin has fallen by 27% in the last five days with the S&P 500 index (SPX) in comparison declining by only 8% in the last three days. The world’s most popular cryptocurrency is currently trading at $22734, marking a 70% downfall from its all-time high of $69000 last November.

Bitcoin first hit the $20k milestone on December 16 2020 following a massive rally in crypto markets. While the Wall Street interest in cryptocurrency was widely credited for this gain, Bitcoin has since managed, for the most part, to stay afloat the $30k support level until recently.

As the currency now falls dangerously close to the $20k psychological price level, this article contrasts the contexts in which Bitcoin’s position can be understood at the $20k price point, 18 months apart.

Institutional eagerness vs Institutional pull out  

Bitcoin’s record performance during the 2020 rally heavily relied on institutional investments as opposed to its traditional reliance on retail speculation. Massive names in the financial world including Paul Tudor Jones and Stanley Druckenmiller, and large tech companies like Square and MicroStrategy added Bitcoin to their portfolio.  This change in investor demographic pushed Bitcoin’s price over the $20k level.

As price indicators continue to predict a downtrend, one of the most important signals recently has been institutional investors pulling out their money from the Bitcoin market even before the crash. Between 6 June and 10 June, about $56.8 million was removed by institutions from the Bitcoin market. Ethereum observed outflows worth $40.7 million. 

Pandemic and FOMO Vs Layoffs and Liquidity Crisis 

The 2020 rally witnessed a domino effect of asset managers offering crypto in their portfolios both in the interest of diversification and as a hedge against inflation. With the pandemic highlighting that the era of virtual currencies is here to stay, a Fear Of Missing Out (FOMO) was seen among traditional finance investors who now emphasised Bitcoin’s limited supply.

U.K. asset manager Ruffer which managed around $20 billion in 2020 announced that it was allocating 2.5% of its portfolio to Bitcoin during the rally.  The move was described by the company as an insurance policy against a continuing devaluation of the world’s major currencies:

“Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see.”

This institutional interest has taken a massive downturn recently amid crypto industry stalwarts like Coinbase laying off 18% of its workforce citing economic reasons.  Crypto lending platform Celsius paused all withdrawals earlier this week due to what it called “extreme market conditions”. 

Experts have viewed this development as a sign of an impending liquidity and insolvency crisis in many parts of the crypto market, further harming Bitcoin’s price. The currency’s volatility is being heavily discussed across investor circles.

Ruffer announced last week that it was exiting its high-profile Bitcoin bet, calling the current situation a “speculative frenzy”.

Duncan MacInnes, an investment director at the company explained the decision by saying that “It just looked like this would be a time when it would be nicer to be watching from the sidelines than from in the trenches.”

Will BTC drop to $20k?  

The big question to be asked is if Bitcoin will fall enough in the next few days to hit the $20k price level and what such a development would mean for investors in particular and the crypto world in general.

Experts like Swan Bitcoin Analyst Sam Callahan believe that while a fall in Bitcoin’s price up to $13k is possible, its now-sophisticated investor base will ensure that the downturn is temporary. Explaining how such a scenario might pan out, Callahan said:

“If Bitcoin dropped below $20,000, I think we would see substantial buying pressure at those discounted price levels because Bitcoin’s long-term value proposition remains intact.”

However, this optimist isn’t shared by all. Arthur Hayes, former CEO of BitMEX explained that as Bitcoin falls below the $20k price level, a liquidity cascade could ensue leading to forced liquidation and additional downward pressure on the market.

In a Twitter thread, the expert said that a massive sell pressure can be expected in this condition, adding that crypto traders might as well shut down their computers as their charts will be useless for a while.

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