Bitcoin
In the week from May 19 to 26 bitcoin price fell by 1.9%. After a serious bullish rally in the first quarter of the year, the second quarter was calmer.
On the evening of Friday, May 26, the price of BTC is just over $26 000. The first cryptocurrency by capitalization has not been so cheap since March.
The situation is far from rosy. This is largely due to the strengthening of the U.S. dollar since early May 2023. If BTC lost during this period almost 10%, the U.S.
The Dollar Index, which shows the relative value of the U.S. currency to a basket of foreign currencies, strengthened nearly 2.5%.
Also, bitcoin’s lack of movement coincided with a general decline in online activity. Since the end of April and throughout May, the number of involved addresses decreased.
While it was more than 18 million on April 25, it was only 14.88 million on May 25.
Well, bitcoin doesn’t fall because there’s no one willing to sell. According to analyst 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.
In terms of technical analysis bitcoin is in sideways movement.
Exit from the corridor can be the beginning of a trend movement: growth or decline. The nearest support level is $25 800 and the nearest resistance level is $27 666.
Glassnode analysts
noted the concentration of large volumes of coins that are “temporarily dormant” in the wallets of certain large investors.
Experts believe that the increase in the number of holders may be due to the expectation of rising prices of cryptocurrency and its further sale.
The Fear and Greed Index for the week
was virtually unchanged, rising from 48 to 49. It is still in the neutral zone.
Ethereum
Over the past seven days the dynamics of ether was zero again. The coin fell in value by 0.25%. E
ther volatility continues to remain low. During the week, only twice a day the price changed by more than 2%, which is quite ridiculous result for cryptocurrencies.
There’s simply no reason to grow. In America, which is a kind of “cryptocurrency Mecca” and a place of concentration of many players, has not yet decided on the increase in the debt ceiling.
There is less and less time until June 1, when the default is supposed to be announced. Naturally, this raises concerns among U.S. citizens.
The results of technical analysis show that the situation is sideways. ETH price is locked in a range of $1 750-$1 850.
A rise above the upper boundary or a fall below the lower boundary will be the starting point of some movement. For now, the best thing traders can do is stay away.
The situation around Ledger hardware wallets is not encouraging either. First, the developers launched an update that gave access to part of the users’ sid-phrase.
Then a new firmware was announced that gave third parties access to the cryptocurrency wallets’ private keys.
And then the launch of Ledger Recovery service was delayed.The result is a confusing story.
The only understandable thing is that Ledger s reputation as a reliable cryptocurrency wallet has been shaken, to put it mildly.
Avalanche
Avalanche cryptocurrency has declined in value more than bitcoin and ether in the last seven days.
The drop was just over 3.9%. It happened almost entirely on a single day – Wednesday, May 24, when the price fell by 3.83% at once.
Avalanche as a whole has had a downward trend since April 19. However, in terms of fundamentals, the platform is doing quite well.
This week it became known about the launch by Circle of the EUROC stablcoin, pegged to the euro on the Avalanche blockchain. Before that, it had only worked on Etherium.
Avalanche’s parent company, Ava Labs, announced AvaCloud launch.
As the company has positioned the service itself, it is a kind of startup platform for Web3, designed to help companies create fully managed blockchains without code.
But in terms of technical analysis, Avalanche’s picture is not the brightest. The coin continues to decline in value. It’s hard to say when the decline will stop.
This will probably happen after the support level of $13.1 is reached. Resistance level = $15.34.
The 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.
In other words, the current situation in the crypto market is characterized by a lull.
It can be explained by investors’ expectation to solve the issue of default in the U.S., as well as the lack of desire on the part of major players to buy or sell at current prices.
This material and the information in it does not constitute personal or other investment advice.
The editorial opinion may not coincide with the opinions of the author, analytical portals and experts.