Polygon Tumbles Near Crucial Resistance Level! Will MATIC Price End Up With A Death Rally?
Polygon investors enjoyed this month as its native token MATIC made overwhelming price momentum since the start of the new year. MATIC price has brought an ROI of over 40% in just two weeks, awakening bullish expectations among traders after a prolonged bearish trend.
Moreover, several analysts believe that MATIC’s price will astonish investors with a surprising breakout upward; on the other hand, some believe that the MATIC token may witness increased selling pressure if it fails to hold its price near the resistance level, resulting in a downturn in the trend.
Polygon Gets Support From The Community
Polygon price has been rallying upward continuously, with a staggering gain of 40% in January, becoming a rising star in the altcoin market with the most significant gain. Moreover, altcoin traders switched their attention to the Polygon network as it recently announced the entry of leading global investment firm Hamilton Lane.
According to the announcement, the NASDAQ-listed firm with nearly $829 billion assets under management (AUM) reveals its $2.1 billion funds on the Securitize platform, a Polygon-based tokenization vehicle. With this initiative from the Polygon network, MATIC’s price is expected to push its limit upward and accomplish its short-term bullish goals in February.
On-chain analyst firm, Jarvis Labs, noted that funding rates on the MATIC price remain neutral, and long-positions witness a significant spike over short positions, hinting at investors’ bet on long-term gain. Additionally, the number of addresses holding the MATIC token has witnessed a spike in January which signifies solid interest from the crypto community.
MATIC Price May Kick Off A Bearish Bloodbath
MATIC price is waiting for a major test as the ongoing market conditions, including the 25-bps interest rate hike, may loosen investors’ confidence. However, the MATIC token seems to get less impact as it continues its upward journey with great partnerships, including Mastercard.
As of writing, MATIC’s price trades at $1.23, with an uptrend above 12% in the last 24 hours. A well-known altcoin trader, TradingStat, predicts that MATIC may prepare for a downward correction as it fluctuates near its fundamental resistance level at $1.27. The analyst stated that a failure to trade above $1.27 might plunge the MATIC token below the 31.8% Fib retracement level to $1.12.
However, a bullish trend above the resistance level may gain investors’ trust in registering a further uptrend with intense buying pressure. A consolidation above $1.28 may take the MATIC token upward with a stable rise and form a next resistance at $1.5.
The Bitcoin Death Cross Looms: What Traders Can Expect Next For BTC Price?
The Bitcoin bulls have continued to surprise many in the past few weeks despite several calls for an imminent price correction. The largest digital asset has gained over 3 percent today to trade around $23.8k.
However, analysts are now convinced Bitcoin price must flip the 50-week and 200-week moving averages (WMAs) into support lines before a death cross occurs.
Historically, Bitcoin price has experienced a choppy market every time a death cross occurs. After the January crypto rally, the 50 and 200W MAs, which have never crossed since the inception of Bitcoin, are at their closest proximity as shown below.
Experts Weigh In: Bitcoin Market Outlook
According to content strategists Keith Alan, the recent interest rate hike is a key factor for the Bitcoin market to consider. Furthermore, the digital asset industry has shown tremendous correlation with market equities in the recent past following increased crypto regulations.
“Now, SPX has a triple top on the Monthly, and BTC is headed for a Death Cross on the Weekly. These are toppy signs, but the FED, FANG, and labor market are dealing wild cards,” Keith noted.
As such, the Material Scientist cofounder indicated that Bitcoin must deal with key moving averages to break out from $25k.
According to analysts Rekt Capital, Bitcoin price is still on a falling trend until it flips the $25k resistance level. The bull case scenario is likely to be extended by increased liquidations that result in a short squeeze. Notably, approximately $39 million has been liquidated in the Bitcoin market in the past 24 hours according to data provided by Coinglass.
Bitcoin Closer to Undergo the First Weekly Death Cross- This Could be the Impact on BTC Price!
Bitcoin price slipped down below $23,000 and created a wave of uncertainty over the crypto space. The altcoins which had risen above their respective resistance levels have dropped below the levels which could flash the revival of a bearish trend. Additionally, the star crypto is closer to witnessing a great leap but towards the south.
The star crypto is about to witness a death cross in the weekly timeframe for the very first time in history and hence the impact is being expected at a larger scale. The death cross is when the 200-day MA & 50-day MA levels cross each other and the 200-day MA levels head toward the lower support. Usually, the impact in the daily chart is bearish as the BTC price drops by nearly 7% to 10%.
Presently, the price trend is towards the south and hence the 50-day MA levels may cross over the 200-day MA to reach the lower support soon.
The death cross is expected to happen in the next week or 2 as the prevailing bearish formations may impact the price negatively. However, the price may still undergo a bullish divergence due to the below-mentioned reasons,
- BTC price is up by 50% from the November lows. Moreover, throughout history, the price surged by such a margin each time it tests the 200-Week MA level which was the bottom of the cycle.
- The weekly RSI levels whenever reach breaks above 60 after hitting the 50-Week MA, indicate the cycle bottom may be reached. Therefore, a notable upswing may be fast approaching.
- Presently, the weekly RSI is around 56.52 and hence a slight plunge may mark the bottom of the cycle ahead beyond which a notable upswing may be ignited
Collectively, after reaching the lower bottoms, the Bitcoin (BTC) price rally may being and reclaim the lost levels very soon.
ADA Price May Spark 60% Death Rally If Fails To Hold This Level! Analyst Maps Potential Bottom Range
Cardano, also known as the Ethereum-killer blockchain, initiated a fresh upward trajectory from the last week as the altcoin market witnessed a major explosion in the price chart since the beginning of the new year. Moreover, ADA’s price has been significantly blown with the current market conditions to mark a notable bullish rally as the network’s developing team, Input Output Global (IOG), reveals developmental enhancements this week.
According to Cardano’s co-founder, Charles Hoskinson, IOG released a toolkit for developers to build side chains of their projects on the Cardano blockchain, shaping a solid roadmap for the ADA token ahead. However, a skyrocketing rally in the ADA price chart may soon turn out to be bull’s trap, resulting in a sharp price slump in the next week with a market cooldown.
ADA Price Shows Signs Of Bearish Reversal!
ADA price has been impressively performing since the beginning of 2023 and has caught the attention of top market analysts and investors with continuous bullish trading sessions. Furthermore, the slowdown in the US inflation data provides solid strength to the altcoin market and pushes major altcoins like ADA to the North.
Though ADA has returned investors over 55% ROI since the price bottom in November, several crypto analysts believe this uptrend could be the beginning of a stretched downtrend, plunging ADA to its monthly lows.
A well-known crypto analyst, VF Investment, gives an eerie feeling for ADA with a bearish sentiment. According to the analysis, the ADA token is poised to retest its strong resistance at $0.405, from which ADA may validate further price movements.
The analyst further states that ADA has been forming a falling wedge pattern since September, and a breakout above $0.4 may be a crucial game-changer for the token to reject its current bearish predictions and head toward new highs.
However, the analyst warns traders of its consequence because a failure to hold ADA’s price near $0.4 may plunge the altcoin into trading below $0.165, bringing a 60% drop from its current price levels.
Is There A Turnaround Due For Cardano?
ADA price seems to stick with the current bullish market conditions as bulls are building great dominance and buying pressure in the price graph. Moreover, the correlation between Bitcoin and the altcoin market has been overwhelming as BTC’s trade above the $20K level may become a catalyst for ADA for a potential bull run and fill investors with bullish hopes.
According to CoinMarketCap, ADA price currently hovers around $0.35 with an uptrend of nearly 1%. Looking at the daily price chart, Cardano may flash strong bullish signals near its 23.6% Fib retracement if it successfully holds near $0.365.
However, the RSI-14 is trading on a parallel channel with stochastic RSI at the level of 76, signifying an overbought region that may thrash ADA downward if it continues to face rejection near the EMA-100 trend line. If the ADA token breaks below $0.33, it may trigger a bearish bloodbath and aim to trade below its Bollinger band’s lower limit of $0.28, where EMA-20 and EMA-50 coincide.
However, ADA may pave a smooth uptrend if it breaks above its weekly RSI level and trades above $0.36, after which the ADA token may skyrocket to break its Bollinger band’s upper limit near the EMA-200 line at 0.43.
Moreover, the MACD line continues to climb slowly above the signal line with SMA-14 trading in a bullish region at 65, forcing the ADA token to retest its resistance near $0.36. It is to be noted that a breach of its bullish analysis may bring Cardano to trade near its 2022’s lows and challenge November’s price trend.
Bitcoin Death Cross Approaching! Where BTC Price is Heading in the Last Week of 2022
Given that the bear market has already led crypto assets to lose the majority of their value in 2022, many traders and analysts are optimistic about the idea of a bullish storm on the horizon. Since the bull market’s peak over a year ago, volatility has greatly decreased, and prices of crypto assets are now calmer than they have been in a while.
The collapse of the Terra network and the bankruptcy of FTX caused two significant market crashes this year. The price of Bitcoin is still fluctuating in a range similar to that of five years ago.
However, according to technical indicators and several analysts, everything is not good in the hood. This week, Il Capo of Crypto issued a warning that the markets as a whole were not prepared for some unseen and upcoming losses.
“For now, it’s fine. Some sideways consolidation, before breaking $17K for further continuation to $17.5-17.7K,” he said.
A never-seen “death cross” between the 50-day and 200-day exponential moving averages (EMA) that is currently due was predicted by Bleeding Crypto.
Meanwhile, Daan Crypto Trades called attention to the year’s end and the likelihood that this will be Bitcoin’s third consecutive year of decline.
“The percentage loss this year is sitting right in between the other two negative years, being 2014 and 2018,” Daan Crypto said.
Will retail buying drive the BTC price up?
On-chain activity hints towards greater Bitcoin selling, despite continued accumulation by small retail traders. Analysts point out that the current trend may significantly contribute to closing the wealth distribution gap. But according to Crypto Quant statistics, this can be a reason for concern for BTC owners in the near future because it might be a risky trade.
“Larger holders selling into smaller holders is really what you want to see if you believe in a longer-term Bitcoin thesis. Bitcoin becomes more distributed on the network. It is on the hands of more investors other than in the hands of a few whales.”
Bitcoin Heading Towards a ‘Death Cross’ – Can BTC Price Reverse the Bearish Impact?
Bitcoin price is hovering below the crucial levels at $20,000 for over a month now and hence the volatility appears to have reached the bottom. Meanwhile, the volume maintains some decent levels which have failed to rise the volatility of the asset. In the coming days, a more dreadful dump is awaiting the Bitcoin (BTC) price rally due to which it may even reach its older levels too.
The BTC price on the weekly chart displays the possibility of forming a Death Cross as the 200-day MA & 50-day MA levels could face a crossover. It is also the first Death Cross happening in the weekly chart since the inception of Bitcoin which may happen somewhere in January or February 2023.
As mentioned in the above chart, the historical death cross is just a few weeks away and if the BTC price wants to nullify the impact, it is required to intensify its volatility. The price is required to move higher and lower very quickly and may even reach the bottom between $7000 to $8000, which may also be a temporary one.
However, the price amid the fresh drop has broken down from the lower trend line, displaying an acute bearish trend. Despite a bullish interference, the price may not get the required boosts as the trade set-up is completely in favor of bears. Moreover, the intensified volume signals the stiff involvement of the bulls and the bears due to which the BTC price has been restricted below the crucial resistance levels.
Vitalik Buterin Sold 3000 ETH During FTX-Alameda Drama! Will It Ignite Another Death Rally For ETH?
The crypto market’s tears and tantrums do not seem to stop here as the FTX-Alameda drama continues to bring new twists to the industry. The collapse of the FTT token has already created massive turmoil in the price chart of leading assets and aims to extend its impact to stop any further bull run of the crypto market in the upcoming months. Recently, it has been reported that Ethereum founder Vitalik Buterin dumped nearly $4 million worth of ETH on 12 November, i.e., during the FTX’s significant hack.
Vitalik Buterin Liquidates Ethereum in FUD
The ongoing events of FTX and the collapse of its native token, FTT, forced investors to liquidate a massive amount of crypto holdings to avoid any uncertain price fluctuation, which might generate a significant loss. Ethereum previously invalidated its bullish speculations regarding its much-anticipated Merge event, and now it looks to dive further to the bottom level amid the current adverse market sentiments.
According to a whale tracker, MistTrack, Ethereum founder Vitalik Buterin exchanged 3000 ETH (worth $4 million) during FTX’s hack, as if he was well aware of the FTX threat. It is to be noted that Vitalik’s dump came to the market when FTX was dealing with several issues, including its native token sudden downfall and major hack of its system, worth $600 million, which was drained in StETH Solana, BNB, LINK, AVAX, and MATIC from the crypto exchange.
On the same day, Vitalik expressed his viewpoints on FTX’s recent collapse as he mentioned, “MtGox ‘looked’ sketchy and never tried too hard to whitewash itself. Luna too. FTX was the opposite and did full-on compliance virtue signaling (not the same thing as compliance). The second kind of fraud cuts deeper than the first.”
This Can Trigger Ethereum To Bleed More!
Despite the recent downturn of Ethereum, the whale ETH holders continue accumulating digital asset in the dip. According to on-chain data provider, Glassnode, ETH holders holding more than 10+ ETH in their wallets have touched a high of 326,899 while the total supply of Ethereum is slowly declining, representing the deflationary nature of ETH.
However, another on-chain analyst firm, CryptoQuant, showed that net ETH deposits to exchanges are making highs compared to the last week, meaning that Ethereum is likely to face increased selling pressure which can plunge its price near $1K. Ethereum’s total number of addresses and transactions is also declining, signaling a possibility of a sharp bearish momentum soon.
At the time of writing, Ethereum trades at $1,240 with a slight uptrend of 0.91%. Ethereum recently attempted to break its immediate resistance level of $1,300 but faced a rejection, which threw ETH near the support region of $1,250. However, the RSI-14 indicates a slight bullish recovery as it trades near the 40-level, which can ignite a short-term bullish reversal to its EMA-20 trend line near $1,378.
The MACD line recently crossed its main line and is trading below it, which can push ETH near its Bollinger band’s lower limit of $1,050 if ETH fails to hold its price above $1,300. If ETH trades above $1,400, it can soon attempt to break its Bollinger band’s upper limit of $1,530 and spark a fresh bull run by the end of 2022.
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FTT Token May Ignite A Death Rally Soon For Major Altcoins And Stablecoins! Here Is What Happening
It seems that the crypto market is going to witness another worst moment after just recovering from the prolonged effect of the historic crash of Terra’s LUNA in May.
A leaked report from Sam Bankman Fried (SBF)-founded trading platform, Alameda Research, claimed that the firm’s billions of dollars ($3.2B) worth of assets are locked in FTX’s native token FTT, which may lead to a crypto crash anytime soon.
This incident has forced FTX’s rival Binance to sell off their FTT holdings as the CEO Changpeng Zhao is going sell off Binance’s FTT holdings worth $2.1 billion to avoid any loss that happened during the LUNA crash.
Moreover, the massive sell-off of FTT tokens in exchange for stablecoins and altcoins may lead to a price dump of cryptocurrencies, including SRM, LDO, BTC, ETH, RNDR, BIT, GOG, UNI, SUSHI, AVAX.
Trailer Of Altcoins’ Bloodbath With FTT Begins!
The massive sell-off of FTT tokens will not only create selling pressure and a price drop for FTT in the chart but will also take several altcoins and stablecoins to the bottom levels.
According to on-chain data provider, Lookonchain, Alameda holds a significant amount of stablecoins and altcoins as the trading platform is constantly exchanging FTT tokens.
According to them, these massive movements of cryptocurrencies will eventually lead to a price dump, including significant assets like Bitcoin and Ethereum.
Moreover, the analyst firm noted that Alameda is making huge transactions of SRM, LDO, RNDR, BIT, GOG, UNI, SUSHI, and AVAX to FTX exchange, highlighting that Alameda Research transferred 478,999 SHUSHI and 636,538 LDO ($1M) to its parent company FTX exchange.
Additionally, the FTX exchange is also dumping other tokens, including CHZ, LOOM, SHIB, LINK, and DYDX, as the crypto exchange giant is directly depositing its holdings to Binance.
Where Is FTT Heading Next?
Looking at the daily price chart of FTT, the token is almost 20% down from its recent high as CZ is slowly dumping the FTT tokens by selling $500 million worth of FTT tokens.
If CZ continues to liquidate more FTT tokens, it will force Alameda’s FTT-backed loans to a massive sell-off, and FTX exchange will close their huge FTT holdings to avoid any upcoming loss in exchange of stablecoins and altcoins, which will create a panic and dump situation for the entire crypto market, leading to a death spiral.
According to CoinMarketCap, Solana, ChainLink, and BNB prices have already started their bearish trend due to high liquidation caused by the FTT sell-off. FTT token is currently trading at $22.6 after making a downside breakout at the EMA-50 trend line of $24.3.
Since then, the FTT token is dramatically falling in the price chart, with the RSI-14 level dropping to 40. The MACD line is also retracing downward following negative market sentiments.
In conclusion, the rising sell-off risks of FTT tokens may put a barrier to the upcoming crypto bull run that may take place by the beginning of 2023, as an increased liquidation of leading assets will extend the timeframe of the bearish trend before a bullish comeback.
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Ego Death Capital, a New Venture Capital Firm Raising $30M
Ego Death Capital, a new venture capital firm focused on the Bitcoin ecosystem, is raising $30 million for its first fund.
“When we decided to take this leap, there was a fundamental shift underway,” Ego Death partner Nico Lechuga told CoinDesk in an interview. “You had the Taproot upgrade on the Bitcoin main chain. Lightning as a scaling solution was nearing completion.”
Lechuga was referring to the fact that Lightning Labs, the developer of the Bitcoin scaling layer Lightning Network, released a test version of Taro, new software that allows Bitcoin developers to issue assets such as stablecoins on the blockchain. Taro is built on Taproot, a Bitcoin upgrade that went live late last year and provided developers with a broader toolbox to build projects.
Lechuga stated, “We were beginning to see entrepreneurs pouring into Bitcoin from not only other ecosystems but also from other disciplines – individuals from the energy area, people from the technology sphere.”
According to a regulatory filing with the U.S. Securities and Exchange Commission, the Ego Death Capital LP opened to investing on September 2, and had raised $11,425,000 toward the $30 million target from 28 investors as of September 15.
According to Lechuga, the fund’s capital came from three partners: high-net-worth individuals, family offices, and institutional investors. Once all the funds are raised, the fund intends to invest in 12 to 15 companies with average check sizes ranging from $1 million to $1.5 million. According to Lechuga, half of the fund’s capital will go toward follow-on investments in the original batch of portfolio companies.
Technically, Ego Death began investing in the fund two months before it began raising money. The company made an unspecified investment in Fedi, a mobile application run by Fedimint, a bitcoin custodian, to help the purchase of virtual currency.
Lechuga previously worked at Spencer Barnor Capital as a senior research associate at a private equity firm. Other partners in Ego Death include serial tech entrepreneur Jeff Booth and Andi Pitt, who spent many years at Goldman Sachs including a stint as vice president of trading.
The company also has a three-person advisory board: Lyn Alden Schwartzer, an investment researcher and Swan Bitcoin board member; Preston Pysh, show host and founder of “The Investors Podcast,” and Pablo Vernandez, Swan Bitcoin’s head of research and development.
Ego Death Capital gets its name from a concept popular in meditation (and psychedelics) circles, which refers to a period of self-surrender preceding a transition, in this case, the rise of Bitcoin as an abundant, accessible financial system.
Lechuga and Andi Pitt emphasized to CoinDesk the necessity of bitcoin in emerging markets. especially those with sizable populations who lack access to banking services. The Bitcoin ecosystem needs to be expanded continuously to reach those populations.
“We’re very focused on layer 3 (the application layer) and sort of layer 2.5, the infrastructure,” Pitt explained.
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FOMC Meeting on Horizon, Will Bitcoin Form New Lows in September as Bearish Death Cross Haunts the Rally
Bitcoin price appears to be poised to hold above the crucial support zone between $18,800 & $18,200. As Coinpedia reported earlier, the BTC price continues to trade along the neckline of the lower support, intending to rebound finely in the coming days. However, the latest trade-set up flashes huge bearish signals as the price is expected to slice through these levels and register new lows very soon.
The 200-week MA is considered one of the important levels and the BTC price has been constantly failing to regain above these levels. Moreover, the unusual death cross is expected to occur in the next couple of days which could slash the price harder.
As seen in the chart, the BTC price has not tested the 200-WMA more frequently in the recent past. The test happened only a few times in history while the price was busy marking the bottoms of the bearish cycle. On the previous occasions when the price contacted the 200-WMA levels, it bounced off firmly and surged with magnificent numbers.
However, it is slightly diverse now as the asset has markers nearly 10-weekly candles below the crucial 200-WMA levels. Therefore, the probability of a rebound diminishes as the asset is preparing for a massive downswing.
The Bitcoin price is witnessing the first ever Death cross led by a cross of 20-WMA & 200-WMA levels. The 20-WMA levels have crossed the 200-WMA and heading towards the south. While the drop is not yet confirmed, a bearish close for the current week may validate the formation.
Since its inception, the 20-WMA levels traded close to the 200-WMA but never cross the levels. However, if the Bitcoin(BTC) price registers a rebound then the bearish formation may be invalidated. On the darker side, a huge plunge may be expected if the formation is validated which may drag the price below $15000 or even test the levels below $10,000 too.
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Bitcoin Death Cross – Historical Data Hints BTC Price To See Worst Case Scenario Dropping This Level – Coinpedia – Fintech & Cryptocurreny News Media
Investors anticipate that the Federal Reserve will increase interest rates once again this week, which has caused significant losses for Bitcoin, Ether, and the overall crypto market. Despite a bullish shift in the market a day earlier, it was unable to reverse the trend.
Rekt Capital, a well-known crypto expert, expects that the price of Bitcoin might drop below $13,900 and reach $11,500 in the worst case scenario.
The Bitcoin price is currently failing to break the $20,000 mark on a monthly basis, displaying volatility. The $20,000-$23,350 region will mostly determine bulls and bears in this market.
However, the lackluster price movement in September shows that $20,000 is currently acting as a resistance level. The following support levels for Bitcoin are $17,165 and $13,900 if the price of the cryptocurrency falls below $20,000 by month’s end.
After a Death Cross, historically, the price of Bitcoin (BTC) develops a bottom at or below the 200-weekly moving average (WMA). Retracements following the Death Cross have ranged from -42% to -73%.
What does death-cross say?
Therefore, based on previous post-Death Cross retracements and support levels, it is expected that the price of bitcoin would bottom out at roughly $13,900. In the worst-case scenario, the price of bitcoin would fall to $11,500.
The drop looks most likely because the price of bitcoin has already fallen below the 200-WMA and the psychological milestone of $20,000.
However, compared to prior eras, there is a significant change in the market cap size, liquidity, and institutional and retail use of Bitcoin now.
In 2015, there were 547 days before the Bitcoin halving, while in 2018, there were 517 days. The bottom will therefore happen in Q4 of this year if Bitcoin is going to reach its lowest point 517–547 days prior to the planned April 2024 halving.