Bitcoin
In the week of May 5-12, the price of bitcoin dropped more than 10%, falling from $29 547 to $26 251.
All seven days the first by capitalization cryptocurrency was declining. This is the first of its kind in 2023.
One of the main reasons that bitcoin spent the whole week in the “red zone” was the problems of one of the world’s largest exchanges Binance.
The platform twice suspended the withdrawal of BTC: on Sunday, May 7, and Monday, May 8. Binance explained the first day of suspension by network congestion.
The second day the problem was due to large number of Binance had to replace old transactions with new ones to fix the problem.to fix the problem, Binance had to replace old transactions with new ones with higher fees.
Along the chain, the cryptocurrency’s problems caused higher fees in the Bitcoin network as a whole.
At one point the amount of payments for transactions exceeded miners’ reward per block of 6.25 BTC. This prompted a number of investors to sell bitcoin.
In summary, the following factors are adding negativity to the cryptocurrency markets:
-
- crisis of the banking system in the U.S. and Europe;
- political tensions in the world;
- high inflation;
- uncertainty about regulatory action on interest rates;</li
- increasing legislative pressure in India;
- problems
FTX and Bittrex crypto exchanges.
In terms of technical analysis, bitcoin has fallen below the support level around $26 500.
This indicates the likelihood of further declines. The next support level is near $25 300. The $26 500 mark is a new resistance level.
The Fear and Greed Index moved into neutral territory for the week. Now its value
is 49. That’s 12 points less than a week earlier.
Ethereum
Ethereum weekly dynamics was similar to bitcoin: decline is slightly less than 12%.. In addition, the trend repeated, when the seven daily sessions ended in a fall of. The biggest drop was on Saturday, May 6, at 4.82%.
In no small part, the fall in etherium was due to the sell-offs of major players.
After it was reported that Ethereum Foundation sold 15,000 ETH worth about $30 million on Kraken, there were some signs of panic among investors.
Soon two more major holders sold off 19 090 ETH (more than $35 million) through Uniswap. Naturally, such pressure from sellers could not but affect on the price of ether.
On Thursday, May 11, There was a glitch on the main network. For 25 minutes no transactions in Etherium were confirmed. The problem was that blocks were offered but could not be finished.
The developers themselves have not yet been able to discover why the failure occurred.. When the problem is identified, they promise to let you know.
The picture from a technical analysis point of view is not very favorable. After seven days of decline, ETH reached the support level of $1 750.
If the level will be broken down, then further decline is possible. The nearest resistance level is around $2,000.
Ripple
Ripple cryptocurrency declined about 8.3% for the week. But unlike BTC and ETH, it showed three days of growth and only four days of decline.
But overall, May is clearly a bearish month: at no time during the day did XRP gain more than 2%.
The big players have also stepped up here. On May 12, 50 million XRP tokens worth about $21 million were Ripple to an unidentified wallet.
A similar transaction On May 9, In addition, two other large transfers were made. One of them is on May 9..
At the time, an unknown purse was transferred to the Bitstamp exchange was transferred 26 million XRP worth about $21.5 million. The second was 28 million XRP worth more than $11.5 million.
These moves by major Ripple holders coincided with experts’ concerns about the cryptocurrency’s falling price.
For example, an analyst nicknamed Egrag thinks that right now XRP is in a downward channel and the trend is bearish.
He believes that in the short term Ripple will decline, but in the long term growth is only a matter of time.
Positive for Ripple is the pending conclusion of a legal battle with U.S. financial regulator SEC.
At any rate, the company’s CEO Brad Garlinghouse hinted at this while speaking to fintech businessmen in Dubai at the Dubai Fintech Summit:
“The ray of hope for Ripple is that we re kind of at the end of. For about six months, I expect to have a decision in the lawsuit against the SEC.”
Right now the picture for Ripple looks negative. The cryptocurrency fell below the 50-day moving average (marked in blue) and came close to the 200-day moving average (marked in green).
If the price breaks it as well, we can expect further declines. The nearest support is at $0.41 and the nearest resistance is at $0.487.
Thus, the current picture on the cryptocurrency market is bleak.
During the week, all of the notable digital coins fell in price in a friendly manner, which is explained by the general uncertainty in the market and the behavior of the big players.
This material and the information in it does not constitute individual or other investment advice.
The opinions of the authors, analytical portals and experts do not necessarily reflect the views of the publisher.