News Updates June 25, 2022

1.  BTC Fights With $21K But is Another Drop Coming? (Bitcoin Price Analysis). 

Bitcoin’s bearish momentum has been weakened after an impulsive crash leading to a short-term consolidation. However, another sudden move to the downside might occur if the negative sentiment intensifies, driven by external forces again, pushing the market below the current support level and closer to $15K.

On the other hand, the yellow trendline has served as a mid-term resistance for the price. The trendline has recently rejected BTC, initiating the leg down to the $17K level. Nevertheless, the channel’s mid-trendline, the 50-day moving average, and the mentioned level are the main obstacles on Bitcoin’s path to higher price channels. 

The 4-Hour Chart
On the 4-hour timeframe, it is evident that the price has been forming a bearish descending channel. The primary support level at $20K and the channel’s lower boundary have ended the recent bearish impulsive move.

Currently, the price has reached the channel’s mid-trendline, which is the main barrier for Bitcoin in the 4-hour timeframe, and a descending trendline(yellow line). In the case of a reversal from this price region, the cryptocurrency needs to break the middle barrier and the yellow trendline to retest the channel’s upper boundary. Otherwise, the price will likely get rejected again, heading to retest the $17K for the second time.

Onchain Analysis

When market participants suffer significant losses, suggesting a “Capitulation” event, markets usually enter a bottom discovery structure phase. Given that long-term holders own most of the supply, there is a lot of emphasis on their capitulation in the Bitcoin market. A long-term holders’ capitulation phase is needed for a multi-year bottom to form.

This chart consists of the 30-day exponential moving average of the Long-Term Holder SOPR and Bitcoin’s price. It is apparent that during prior bear markets, a lengthy period of long-term holders’ capitulation occurred since they significantly realized losses. The fact that the metric has fallen below 1 indicates selling pressure from long-term investors.  This has frequently triggered the last stage of the bear market. Nevertheless, It should be noted that this phase might take several frustrating months of volatility accompanied by numerous massive shakeouts.

2.  Crypto market recovers $133 billion in a week regaining 16% of its capitalisation

The cryptocurrency market is presently in the green after recovering more than $130 billion in the last week.

Interestingly, the increase in the value of the crypto market capitalization comes at a time when there are fears that the industry is in the midst of a cryptocurrency winter.

Despite this, the total value of the global cryptocurrency market cap increased by more than 3.3% over the past day.

Furthermore, over the past week, it climbed from $832 billion on June 18 to $965 billion on June 25, representing a $133 billion increase and an overall rise of 15.99%, according to CoinMarketCap data

The value of the flagship cryptocurrency leads the global crypto market in terms of inflow. Currently, Bitcoin (BTC), the digital asset with the highest market capitalization is trading at $21,392, up 2.29% in the last 24 hours and 10.27% in the previous week.

Notably, Bitcoin in the last week went from as low as $338 billion to a market cap of $408 billion. Despite the tenacity shown this week in terms of maintaining a position above such a significant level at $20,000, this weekend might be another trying phase for the cryptocurrency.

The support continues to show signs of distress below, and a break there might put investors’ faith in the sector to the test.

In spite of the ongoing shakeout in the cryptocurrency market, experts were keeping a close watch on key market indicators for signals that prices may have reached a bottom.

 *Ethereum climbs above $1,200 as altcoins see green* 

Elsewhere the second-largest asset by market cap, Ethereum has climbed back above the crucial $1,200 level to trade at $1,223, up 6.05% on the day and 21.36% in the last week, with a total market worth of $148 billion.

Other leading altcoins such as Cardano (ADA), Solana (SOL), and Shiba Inu (SHIB) are all trading in the green at the time of publication.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

3. This Bitcoin Bear Market Is Unlike Any Other, Here’s Why

With Bitcoin languishing over 73% below its November highs, the token has decidedly entered a bear market.

But several macroeconomic factors make this bear market different from the ones seen in 2020 and 2018, complicating the timing of a recovery. This has also seen crypto markets experience one of their worst drawdowns in history- down over $2 trillion.

On the technical front, a recent report from on-chain data firm Glassnode shows that Bitcoin is experiencing its largest capital outflow in history, significantly larger than past bear markets.

The token, which accounts for 43% of the crypto market, is trading well below its realized price, indicating that most investors are holding the token at a loss.

Bitcoin is trading around $21,400. There appear to be few factors that could spur an immediate recovery.

4. Brazil Federal Police Receives Crypto Training from Binance

Binance, the largest cryptocurrency exchange by trading volume, has partnered with the Brazilian Federal police to provide training on crypto, blockchain, and anti-money laundering in digital assets.

 *Binance Provides Training to Brazilian Police*

The CEO of Binance, Changpeng Zhao (CZ) posted a tweet on Friday updating the platform’s achievement over the period of the last 48 hours. Among them includes providing crypto training to the Federal police of Brazil, a first-of-a-kind for such a platform.

In a separate report from The National, it was found that Binance Research, which provides professional, data-driven insights and analysis to increase the level of transparency, is going to provide the training on blockchain and cryptocurrencies.

Invited guests in the workshop include the Brazilian federal police and other agencies which includes members of global cybercrime experts who will learn together to know more about cryptocurrencies and the industry.

The training overall will last three days covering blockchain, crypto regulations, and AML policies concerning digital assets.

 *Binance Takes Security Seriously*

Binance’s security and investigations team has dealt with many different types of fraud and scams over the years. The platform has also actively monitored and has successfully identified different actors as well as individual accounts associated with criminal and terrorist activity.

The platform has a 150-strong security and investigations team that deals with the toughest security problems. It does so by working across the public and private sectors in addition to a collaborative partnership with law enforcement agencies around the globe.

5. Sri Lankans Turn to Unregulated Crypto Amid Crisis; India Moves To Regulate It

* The onset of the COVID-19 marked the beginning of Sri Lanka’s economic difficulties.

* Many who anticipated the crisis turned to cryptocurrencies, which are still unregulated in the country.

* Sri Lanka’s economy has been in freefall for some time now and is on the verge of bankruptcy.

The pandemic was the start of problems for the economy of Sri Lanka. Many individuals who expected the crisis began looking for ways to survive. Some resorted to cryptocurrencies, which do not yet have any kind of governing structure in Sri Lanka. In contrast, its neighbor, India, is slowly moving ahead to regulate the asset.

The imposition of a 1% transferable value securities tax on crypto assets was only recently announced. In addition, a comprehensive explanation was provided by the government two days ago in response to the concerns voiced by the business.

When the TDS policy is scheduled to take effect on July 1st, would it be business as usual for cryptocurrency exchanges and dealers in the domestic market?

The shares of home finance firms, much like those of cryptocurrency companies, have been on a downward trend for quite some time now. After the repo rate was increased on May 4 by the Reserve Bank of India (RBI), most of them went into a tailspin.

There is a segment of businesses that may be susceptible to the effects of interest rate rises, although economists think that healthy demand for real estate may mitigate the effect of rate hikes.

Meanwhile, in Sri Lanka, the economy has been in a free decline for some time now and is speeding toward insolvency at an alarming rate. Its food inflation has skyrocketed to 57%, and the country has no reserve to import necessities due to the depletion of its reserves.

The clothing and tea sectors, two of Sri Lanka’s most important economic pillars, are both suffering severe setbacks as a direct result of the current economic crisis.

6. The Richest Bitcoin Whale in Existence Now Has Over $2,763,000,000 in BTC After Massive Series of Transactions

The world’s largest non-exchange Bitcoin whale now holds over $2 billion worth of BTC after a string of massive transactions earlier this month.

According to crypto data platform BitInfoCharts, the whale has added 2,554 Bitcoin in a series of transactions since June 14th.

Between June 14th and June 18th, the whale purchased 1,698 BTC worth $36.62 million. Since then, the whale has accumulated 856 BTC worth $17.35 million.

Bitcoin is trading for $21,198 at time of writing.

The richest non-exchange Bitcoin whale currently holds a total of 130,227 BTC or 0.68% of the current supply. It is the world’s third-largest Bitcoin whale after the wallets belonging to Binance and Bitfinex crypto exchanges.

According to crypto analytics firm Santiment, the crypto market downturn has triggered an increase in the number of Bitcoin whales.

Santiment says the rise in the number of whales holding more than 10,000 Bitcoin started in February while the increase in the number of addresses holding between 10 and 10,000 BTC began earlier this month.

“While markets have been suppressed, there has been an increase in the amount of larger Bitcoin addresses popping up on the network. Addresses with 10 to 10,000 BTC have surged on the drop two weeks ago, and 10,000+ addresses have risen since February.”

7. Celsius Network To Declare Bankruptcy?

According to the latest Wall Street Journal article, the struggling crypto funding service, Celsius Network, could be planning to declare bankruptcy after hiring structural advisors from consultancy company Alvarez & Marsal.

Celsius Network unexpectedly banned customer withdrawals, swaps, and exchanges in early June, claiming the present market collapse to be the reason.

8. Bitcoin network power demand falls to 10.65GW as hash rate sees 14% drop

The overall power consumption of the Bitcoin (BTC) network recorded a drastic drop after mimicking the two-week-long fall in the mining hash rate, which reduced the commuting power for mining BTC blocks to 199.225 exahash per second (EH/s). 

According to the data shared by the Cambridge Centre for Alternative Finance, the Bitcoin network recorded the year 2022’s lowest power demand of 10.65 gigawatts (GW). At its peak, the BTC network demanded 16.09 GW of power.

9. Smaller Exchanges Could Fall Due to Confusing ‘Web of Relationships’

Smaller crypto exchanges could be vulnerable to collapse during this crypto bear market, given seemingly unsustainable yields offered to users, and a confusing “webs of relationships” between companies in the space, a new report has emerged.

According to latest reports, exchanges are currently under stress for several reasons, including the decline in trading volumes that always comes during crypto bear markets.