Bitcoin
The bitcoin price was up 1.44% in the week from May 26 to June 2. Four of the seven trading sessions were negative. The largest change in the value of BTC was observed on Sunday, May 28, when the rise was 4.47%.
Source: tradingview.com
The current situation with the first cryptocurrency seems uncertain. For the past week it seemed to manage to rise above the mark of $28 000, but it did not last for a long time. As a result, BTC dropped back to $26 500. One of the main topics of the last time was the increase in the debt ceiling in the U.S. and a possible default. This problem is eliminated now. However, the problems remain.. There remains the possibility of the dollar losing its leading position in the world of traditional currencies. Then the eyes of investors may turn to bitcoin. Similar thoughts from
Larry Fink, CEO of BlackRock, the largest investment company in the world:
“The U.S. has jeopardized its reserve currency status because of the drama over the national debt ceiling.”
Analyst firm Glassnode is also positive about bitcoin. Analysts came to this conclusion because of the actions of holders – those who hold cryptocurrency from five months (155 days, to be exact). This platform has developed a special tool Long Term Holder Spending & Profitability (spending and yield of holders in the long term). According to his data, investor behavior is divided into four phases:
- Capitulation.
- Transition
- equilibrium point.
- Euphoria.
.
The first phase is characterized by a situation where the market price is below the cost of long-term holders. This phase was observed at the end of 2022. Transition is the phase in which the price is just above investors’ costs (currently
is $20 800). That’s the phase we’re in right now, according to analysts at Glassnode.
Source: insights.glassnode.com
The next question is where the equilibrium point will be found. And now from the point there are two ways left – either to the correction, or “to the euphoria.
From the point of view of technical analysis, the situation remains uncertain. There was a desperate upside attempt during the week, but it only resulted in the formation of a new resistance level at $28 452 with a further pullback.. The support level from last week remained unchanged at $25 800.
Source: tradingview.com
The Fear and Greed Index over the seven days
rose slightly, from 49 to 50. This still suggests neutrality in the crypto markets.
Ethereum
Etherium gained more than Bitcoin by 3.42% over the week. The trend in the value of both cryptocurrencies is similar. Strong gains in the first half of the week followed by declines in the second half.
Source: tradingview.com
ETH has not seen serious movements so far, but the situation may change soon. At the moment, the number of coins on the exchanges is at a minimum of 9.9%. In addition, transaction fees in ethereum have also declined after a spike in early May 2023. This was reported on Twitter
informed the Santiment portal:
<blockquote
“Average commissions in Etherium are back from the sky to earth after their high of $14 per transaction in early May. Greater availability spurs greater usability. In addition, the second crypto-asset is at its all-time low of 9.9% on exchanges, as non-custodial wallets rule the ball.”
Why should the situation change? Because the number of coins in circulation is a measure of liquidity.. The less there is, the less liquidity there is, the more the price will be affected by even minor attempts to buy or sell.
The VanEck management company also predicts the growth of ether. Only her specialists have a longer planning horizon – seven years.. Analysts believe the coin could go as high as $11,849, six times its current value.. If the outcome is favorable, the etherium will exceed $51 000, and if negative, it will fall below $350.
In terms of technical analysis, the second most capitalized cryptocurrency remains sideways. Last week’s high of $1927.5 remains a resistance level.. The support level is $1750.
Source: tradingview.com
Avalanche
0.06% – that’s exactly how much Avalanche’s AVAX token price changed over the week. In this case, the past seven days can be clearly divided into two parts: when the coin was rising – that was until Sunday, May 28, and when it was falling – since May 29.
Source: tradingview.com
Avalanche’s overall trend since mid-April is downward. However, the platform itself is not doing so badly, at least it is gaining popularity. Avalanche recorded 1 million active users in May. This happened to the site for the first time. According to parent company Ava Labs, this
The emergence of AvaCloud, a platform for blockchain creation without code, has contributed to this.
Source: avax.network
It’s worth noting that the increase in users has not led to an increase in transactions in Avalanche. The May figure of nearly 56.5 million units was slightly higher than April’s 55.8 million, but lower than March’s over 58.1 million.. The record number of transactions for 2023 was 64.5 million in January.
Source: avax.network
From a technical analysis point of view, Avalanche is close to the support level of $13.1. The attempt to push back from the bottom this week was leveled. The growth is possible after it overcomes the resistance level of $15.34.
Source: https://ru.tradingview.com
So, the next seven days passed even too quietly and peacefully for cryptocurrencies. The best is ether, which rose by almost 3.5%.. Good statistics on bitcoin and Avalanche did not have any noticeable impact on the value of these major cryptocurrencies.
This material and the information in it does not constitute individual or other investment advice. Editorial opinion may not coincide with the opinions of the author, analytical portals and experts.