Bitcoin, Ether, Major Altcoins – Weekly Market Update June 13, 2022
The cryptocurrency market erased $326 billion from its market cap in the last seven days and now stands at $962 billion. The top 10 coins were mostly in red for the same time period with ether (ETH) and Solana (SOL) being the worst performers with 33 and 31 percent of losses respectively. Bitcoin (BTC) is currently trading at $23,700 while ether (ETH) is at 1,200.
Bitcoin ended the previous seven-day period with its first green weekly candle since the end of March thus breaking the losing streak. However, this move looked rather weak and more like a temporary consolidation before the next leg down as part of the general downtrend. The coin closed the Sunday, June 5 trading at $29,959 still below the July 2021 lowest weekly candle close but above the mid-term horizontal support at $28,500.
On Monday, June 6, the BTC/USDT pair made an unexpected break above the 21-day EMA on the daily timeframe chart and hit the $31,800 mark while adding 4.7 percent to its market cap for the day. The 24-hour trading volumes briefly jumped above the average value for the last 14 sessions. We could still see a bullish divergence between the current price action and the Relative Strength Index (RSI) which crossed its middle level.
The Tuesday session brought us a full retrace of the solid green candle we just mentioned above in the morning hours of trading. BTC corrected its price down to $29,400 before climbing back up to $31,100 in the evening.
The mid-week trading day on Wednesday came with another break below the 21-day EMA as the biggest cryptocurrency was struggling to choose a direction. It fell down to $30,173 losing 2.8 percent.
On Thursday, June 9, the BTC/USDT pair closed flat, right below the 21-day EMA on the daily timeframe chart. The coin was still trading in a range.
The last day o the workweek came with a solid drop for bitcoin. It lost 3.3 percent and once again hit $29,100 in preparation for another test of the horizontal support.
The weekend o June 11-12 started with a drop to $28,400 on Saturday that was followed by a 6 percent pullback to $26,600 on Sunday. The biggest cryptocurrency was now trading below its extremely stable support.
As of the time of writing this market update, bears are pushing the price even lower – around $23,580 as many are already looking at the previous bull-run high as a potential bottom.
The Ethereum project token ETH was not able to turn green at the last weekly candle close and instead closed its ninth consecutive seven-day period in red. Still, the good news for buyers was that the coin managed to keep trading above the long-term horizontal support right above $1,700. However, support gets weaker and weaker with every test, so the most probable scenario here will be a short rally in the upward direction to collect liquidity before attempting a major break downwards.
On Monday, June 6 the ETH/USDT pair climbed up for the third day in a row reaching the $1,925 mark before closing a little bit lower – at $1,861 later in the evening.
The coin was still trading below the 21-day EMA and the short-term diagonal resistance but the trading range was getting narrower suggesting a potential breakout in either direction is imminent.
On Tuesday, the ether once again tested the already-mentioned support and corrected its price down to $1,810.
The third day of the workweek came with a drop to $1,790 and the coin was now clearly in a pennant formation that can result in a downtrend continuation.
On Thursday, June 9, the ETH/USDT pair remained flat, but below the lower boundary of the mentioned bearish pennant formation. This could lead to a potential drop to the zone right above $1,000 if all technical analysis rules for the target of the classical Bearish Pennant formation are kept.
The Friday session brought only pain for bulls. The ether broke below the long-term horizontal support and erased 7 percent of its market cap by hitting $1,662.
The strong selloff activity continued over the weekend. The leading altcoin lost another 8 percent on Saturday and 6.6 percent on Sunday which resulted in it ending the seven-day period at $1,430 and with a 20 percent loss.
What we are seeing midday on Monday is another yearly low as bears were still in full control of the market and ETH was in full capitulation mode. The price is currently hovering around $1,200 for the first time since January 2021.
- XRP (XRP)
In times like these, we just need to look at a random token on the Top 10 list as currently all of them are registering double-digit losses.
The Ripple company token XRP for instance is trading around $0.30 today, 10 percent down for the day. The current level is a solid support/resistance zone on the weekly timeframe. It has served as a point of control many times in the past so buyers could use it as DCA if they remain long-term crypto believers.
The next level of support is near $0.23.
Altcoin of the week
Our Altcoin of the week is Leo Token (LEO). Also known as Unus Sed Leo, LEO is the native coin of the iFinex group, the parent company of the Bitfinex exchange. LEO was literally the only non- stablecoin on CoinGecko’s Top 100 list that finished last week in green. It added 7.6 percent to its valuation and hit $5.58 as a seven-day high.
Looking at the weekly timeframe chart, the LEO/USD pair was in a consolidation after hitting a new all-time high back in February 2022. It stabilized its price around the $5 horizontal support and the 21-period EMA and started moving in the upward direction at the end of May. LEO is more than 13 percent up since hitting its short-term bottom.
It is not fully clear what is the reason behind the recent surge in the price of the Bitfinex exchange token but it most probably has to do something with the troubles Binance and its BNB token are having with the United States Securities and Exchange Commission. Earlier this year, on February 8, the United States Department of Justice (DOJ) announced it has seized over $3.6 billion worth of Bitcoin (94,000 BTC) that were stolen from the exchange in a hack back in 2016.
Leo is currently trading at $5.44 and is ranked at #15 with a total market capitalization of approximately $5 billion.