bitcoin
For the week from May 19 to May 26, the price of bitcoin fell by 1.9%. After a serious bull run in the first quarter of the year, the second quarter turned out to be more calm. On Friday evening, May 26, the price of BTC is a little over $26,000. The first cryptocurrency by capitalization has not been so cheap since March.
Source: tradingview.com
The situation is far from growing. This is largely due to the strengthening of the US dollar since the beginning of May 2023. If BTC has lost almost 10% during this period, then the US Dollar Index, which shows the relative value of the US currency to a basket of foreign money, has strengthened by almost 2.5%.
Source: tradingview.com
In addition, the lack of movement in bitcoin coincided with a general decrease in activity on the network. Since the end of April and throughout May, the number of addresses involved has been declining. If on April 25 the figure reached more than 18 million, then on May 25 only 14.88 million.
Source: app.santiment.net
Well, bitcoin does not fall because there are no people willing to sell. According to analytics portal LunarCrush, overall bearish sentiment is at its lowest since September 2022. And in general, the indicator has been declining since the end of March.
Source: lunarcrush.com
In terms of technical analysis, Bitcoin is in a sideways movement. The exit from the corridor can be the beginning of a trend movement: growth or fall. The nearest support level is $25,800, the nearest resistance level is $27,666.
Source: tradingview.com
Glassnode analysts
noted the concentration of large volumes of coins that are “temporarily inactive” on the wallets of individual large investors. Experts believe that the growth in the number of holders may be due to the expectation of a rise in the price of the cryptocurrency and its further sale.
weekly fear and greed index
practically unchangedgoing up from 48 to 49. He is still in the neutral zone.
Ethereum
Over the past seven days, the dynamics of the ether was again zero. The coin fell in price by 0.25%. Ethereum volatility continues to be low. In a week, only twice a day the price changed by more than 2%, which is a rather ridiculous result for cryptocurrencies.
Source: tradingview.com
There is simply no reason to grow. In America, which is a kind of “cryptocurrency Mecca” and a place of concentration for many players, they still have not decided on an increase in the debt ceiling. There is less and less time until June 1, when a default is supposed to be announced. Naturally, this causes concern among US citizens.
The results of technical analysis characterize the situation as flat. The price of ETH is clamped in the range of $1,750-$1,850. A rise above the upper limit or a fall below the lower one will be the starting point of some kind of movement. For now, the best thing traders can do is stay away.
Source: tradingview.com
The situation around Ledger hardware wallets is not encouraging either. First, the developers launched an update that gave access to part of the users’ seed phrase. Then it was announced the launch of a new firmware that gave third parties access to the private keys of crypto wallets. And then the launch of the Ledger Recovery access recovery service was delayed. The result is a convoluted story. The only clear thing is that the reputation of Ledger as a reliable crypto wallet, to put it mildly, has been shaken.
Avalanche
The Avalanche cryptocurrency has fallen in price more than bitcoin and ether over the past seven days. The fall was slightly more than 3.9%. At the same time, it almost completely fell on one day – Wednesday, May 24, when the price fell immediately by 3.83%.
Source: tradingview.com
In general, Avalanche has seen a downtrend since April 19. However, in terms of fundamentals, the platform is doing well. This week it became known about the launch by Circle of the EUROC stablecoin, pegged to the euro on the Avalanche blockchain. Before that, he worked only on Ethereum.
Avalanche’s parent company, Ava Labs, announced
about the launch AvaCloud. How the service is positioned in the company itself is a kind of
launch pad for Web3, designed to help companies create fully managed blockchains without code.
But from the point of view of technical analysis, the picture of Avalanche is not the most rosy. The coin continues to decline in price. It’s hard to say when to stop falling. Perhaps this will happen after reaching the support level of $13.1. Resistance level = $15.34. Bearish sentiment is also confirmed by the fact that the price is below the 50-day (marked in yellow) and 200-day (marked in purple) moving averages.
Source: tradingview.com
In other words, the current situation in the crypto market is characterized by a lull. It is explained by the expectation of investors to resolve the issue of default in the US, as well as the lack of desire among major players to buy or sell at current prices.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
