Crypto Brief on June 10: Bitcoin may see “at least 18 weeks” of blood plus ETH, ADA, LINK, MKR, Paxos
Bitcoin may go through bloody months after forming the Darth Maul candle while some altcoins show bullish fundamentals and technical signals.
Bitcoin (BTC) Analysis
Bitcoin continued to consolidate around $ 9,700 in the period after forming the Darth Maul candle late yesterday as the price climbed to a high of nearly $ 9,900 before plummeting to the $ 9,400 area.
After hitting a low, BTC has quickly bounced back to $ 9,700 – the area where it has been trading for over a week now.
However, analysts are cautious about the short-term trend of King Coin as one analyst recently predicted that Bitcoin would experience at least 18 weeks of price declines before it could start a strong uptrend.
This prediction was made due to an accurate historical pattern that had predicted many previous BTC price trends.
The strong movement seen last night is likely to be the source of liquidity coming from some large players.
The trend of cryptocurrencies has grown increasingly unclear during the past week as buyers and sellers were stuck in the wake of a brief rally of up to $ 10,400.
Analyst Teddy has pointed out the trend line formed since March and noted that a neat break below this line will open the gate pushing Bitcoin to the $ 7,000 area.
Source: Teddy / Twitter
Analyst Dave the Wave has recently taken a grim path for Bitcoin. He explained that an momentum indicator on BTC’s Gaussian channel is about to decline, signaling that it may experience several months of weakness.
“The momentum on the Gaussian channel is almost over. At least 18 weeks in red. ”
Source: Dave The Wave / Twitter
He also explained that Bitcoin’s Gaussian momentum indicator tends to turn red about a year after it peaks – further supporting this potential trend change.
Ethrereum (ETH) Analysis
Ethereum price is trading in a critical range above the key support zone of $ 240. The altcoin has reconsidered the range support at $ 240 recently and it is currently rising.
The price are hovering above $ 242 and the 100-hour SMA. There is a break above the Fib 50% retracement of the recent decline from a high of $ 248 to a low of $ 240.
However, the level of $ 245 is currently acting as a resistance. There is also a major downtrend line forming with resistance near $ 245 on the hourly chart of ETH / USD. The trend line is close to the 61.8% Fib retracement level of the recent decline from a high of $ 248 to a low of $ 240.
Source: TradingView
If a break above the trendline, the ETH price can make another attempt to clear resistance at $ 248 and $ 250. A successful close above the $ 250 resistance is needed for a sustained upward move. At that time, it is likely to increase strongly by 8% to 15% towards the $ 265 and $ 280 levels in the near future.
Cardano (ADA) Analysis
Search interest for Cardano has reached its highest level this year, according to data from Google Trends. The growing interest in the promising blockchain platform follows the increase in on-chain power of the network and major developments from IOHK, all of which show that ADA could be up for a bull rally.
Shelley, the network update that will bring staking to the platform, is now closer than ever, and will eventually pull Cardano out of the realm of ability and push it to the top of the cryptocurrency market.
The testnet for Shelley was opened to all stake pool operators earlier this week, bringing a lot of attention to the platform.
Data from analytics firm LunarCrush shows that nearly 6,000 social media posts mentioning Cardano have been published in the past 24 hours. The company’s data measures overall social engagement, showing more than 10.7 million posts, comments, retweets and favorites across all social media.
Source: LunarCrush
Not only are social media posts growing, but searches for Cardano have also peaked in the past two years.
Source: Google Trends
Blockchain analytics firm IntoTheBlock reported on June 6 that more Cardano addresses are holding ADA than ever before, reaching 385,080 addresses last weekend. This figure has seen almost consistent growth since the 2018 bubble.
This indicates that the ADA is becoming less and less focused over time, suggesting that the coins are leaving the hands of whales and going into the hands of more retail users.
Chainlink (LINK) Analysis
The LINK price have gradually increased over the past two months. Although the upside has shown considerable strength, the price is approaching an important resistance area, which can be an obstacle to the ongoing uptrend.
LINK has been trading inside a long-term symmetrical triangle since it reached an all-time high of 56,734 satoshi on March 3. Both support and resistance lines are confirmed three times.
At the time of writing, the price is trading at the 45,000 satoshi area, close to the Fib 0.618 level of the most recent decline. Though the price was rejected here on June 4, the bulls are preparing to make another breakout attempt above this level. If successful, the price can rise to the resistance line of the triangle (49,500 satoshi).
The daily RSI is above the 50 level and does not form any bearish divergences, which suggests that the price may continue moving upwards.
Source: TradingView
In the short term, we can see the minor resistances and supports at 46,500 and 44,500 satoshi, respectively.
Also, the price may be trading inside an ascending wedge, which is a bearish reversal pattern. However, the slope of the resistance line is not clear, so we can change this pattern to ascending channel.
The price seems ready to rise to the minor resistance zone at 46,500 satoshi and rise to the resistance line of the long-term symmetrical triangle. Once there, the presence of divergence in the RSI will determine if it will break above this resistance line, or it will be rejected and decreased.
Source: TradingView
MakerDAO (MKR) Analysis
The MakerDAO price has rallied about 30% in the past 24 hours, recording a new year high of over $ 720 on some exchanges.
The rally follows a late May rally of around 45% after Coinbase Pro once again listed MKR. Yesterday witnessed the biggest 100% price increase in two weeks.
MKR / USD on Bitfinex: TradingView
For the BTC trading pair, the rally saw MKR surpass its upper range by 2020 and soared to a local high of 0.076 BTC before quickly retracing to 0.060 BTC. MKR is currently trying to establish support at 0.070 BTC.
MKR / BTC on Bitfinex: TradingView
According to DeFiMarketCap, Maker currently accounts for nearly one-third of the total market cap of $ 2.4 billion for DeFi tokens.
Paxos News
Paxos, a stablecoin with a market capitalization of about a quarter billion dollars, is besieged by transactions related to the alleged Ponzi scheme called the MMM BSC.
A recent report from Coin Metrics revealed that 40% of all PAX transfers are related to the MMM BSC program.
Paxos transactions initially look like retail, but upon closer inspection, the two most active Paxos accounts associated with the Ponzi program, promise:
“Yes, it’s possible to get the monthly income of up to 40% or 50%, but this is not a high-risk investment project!”
Source: Coin Metrics
Read more:
- Skew: Bitcoin Options Are Maturing Much Faster Than The Futures Markets Launched In December 2017
- Bitcoin Price Bull Case Still Strong As A Few Factors Suggest Upside Could Be Imminent In The Days And Weeks Ahead