BTC Still Stuck Below $20K as CAKE and MANA Seem Set for Gains
The Bitcoin price is currently stuck below $20,000, with a sideways movement within the last 24 hours and seven days. This top crypto by market cap is down 4% over the past day and 7% in the last week.
A Bear Market Threatens Bitcoin’s $20K Mark
Although Bitcoin has shown no sign of a reversal, many altcoins are still in the red. The market’s current condition can be traced to various factors, such as the US Federal Reserve’s decision to raise interest rates.
Among the altcoins that reacted negatively to the Fed’s report were Ethereum and Bitcoin. After the release of the report, Bitcoin and Ethereum dropped by 0.9% and 2.0%, respectively. The price of Bitcoin then briefly rose above the $23,300 mark. Ethereum, on the other hand, was trading at around the $1,800 level. Other markets, such as the stock market, also dropped into the red zone.
The Dow Jones Industrial Average and the S&P 500 both traded slightly lower. The Nasdaq and the S&P 500 are also sideways. Since the beginning of the month, the crypto markets have continuously dropped, bringing Bitcoin’s price down to around the $20K mark.
CAKE Sets Sights For $5
The rise of the Pancakeswap token (CAKE) has been one of the most prominent developments in the cryptocurrency world. Its popularity was largely due to its decentralized exchange (DEX). However, new promises emerged after several million of its tokens were removed from the market.
In a statement released on Twitter, the company said that a scheduled burn had removed over 7 million of its tokens. The total amount of money lost due to the burn was around $29 million. The team also claimed progress in various spheres. The first was a 17% rise in trading fees, which resulted in 334,000 CAKE and a $1.38 million value. 40,000 CAKE, worth $166,000, witnessed a 28% rise in lottery and ceramics sales.
Meanwhile, the NFT Market, Profile, and Factory had the biggest growth, with a 215% rise in 16,000 CAKE and a $65,000 increase. Others decreased, including Prediction and Auction. Prediction decreased 18% with 75,000 CAKE, equivalent to $78,000 in dollars, while Auction saw a decline of 1%, translating to 15,000 CAKE with a currency value of $62,000.
Ready For Another Bounce?
The news about the burn sent the price of CAKE surging past the $4 mark. It had traded below that level for a few weeks before the announcement. The initial bounce was short-lived as momentum started to die down. It was expected since the burn announcement’s hype had created a correction. However, a bounce can usually come after the first one, as the digital asset tends to find its footing once it gets back on track.
After finding support at the $4 level, CAKE has now broken above the 50-day simple moving average. It suggests that digital assets will continue to gain ground due to the increasing popularity of decentralized exchanges, such as the Pancakeswap. This demand is expected to push its price up to around $5.
CAKE has lost 5% in the last 24 hours trading at $3.93. With a market cap of around $547.8 million, it is the 69th largest digital assets.
Can MANA Break Past $0.86?
The bullish momentum is expected to continue as long as MANA holds above the $0.86 zone. That could lead to a stronger recovery and establish a round bottom pattern. On the flip side, if the buyers fail to maintain their position at the $0.8 zone, a break below the support level could signal a fake break and a potential decline.
The rise in the index above the midline suggests that the crypto is amid a bullish trend. A spike above this level would also indicate that the trend will continue.
