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BTC, ADA, SOL, MATIC, KLAY

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The US core consumer spending index (PCE) rose 0.5% in May, below market estimates of 0.6%. However, year-over-year the PCE index rose to 3.4%, the largest increase since 1991.

While the US Federal Reserve expects temporary inflation, the BofA analysts differ in their assessment. The bank expects US inflation to stay high, in the 2% to 4% range, for the next two to four years, and believes the Fed will hike rates over the next six months, subject to a financial market crash .

Daily view of crypto market data. Source: Coin360

Should inflation continue to rise, investors will likely focus on Bitcoin (BTC) again to hedge their portfolios. A CoinShares report released on June 21 said it was uncertain about inflation for the next five years but believed that “adding bitcoin and other real assets is a prudent move to keep portfolios from the tail risk of spiraling out of control To protect inflation ”.

Although the short-term risk remains, select cryptocurrencies could offer traders short-term trading opportunities. During a bear phase, traders can focus on making profits on a regular basis rather than waiting for windfall rallies. Let’s look at the charts of the top 5 cryptocurrencies that could turn bullish in the short term in the next few days.

BTC / USDT

Bitcoin fell to the support zone of $ 28,000 to $ 31,000 on June 26, but the positive sign is that the bulls bought that decline again. This suggests that buyers are clustering at lower levels.

BTC / USDT daily chart. Source: TradingView

The bulls will now try to push the price above the 20-day exponential moving average ($ 35,148). If they can do that, it suggests that selling pressures may ease. The positive divergence in the Relative Strength Index (RSI) also suggests a possible recovery rally.

A break above the 20-day EMA could open the doors for a move into the stiff overhead resistance zone at $ 40,000 to $ 42,451.67. The 200 day simple moving average ($ 43,505) is just above this zone, so it could be difficult for the bulls to climb above.

This indicates a possible consolidation between $ 28,000 and $ 42,451.67 for the next few days. The longer the price trades in this range, the stronger the next breakout will be. The trend will favor the bears if they can keep the price below $ 28,000.

BTC / USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are trying to make a higher bottom at $ 30,000. The 20-EMA has flattened and the RSI is near the middle, suggesting that sellers are losing control.

If the bulls keep the price above the 20-EMA, the BTC / USDT pair could rise to the 200-SMA. A break above this resistance could attract further buying which could push the price to $ 40,527. That bullish view will be invalidated if the bears pull the price below $ 30,000.

ADA / USDT

Cardano (ADA) rallied from the $ 1 support on June 22nd, suggesting strong accumulation near this level. However, the bulls were unable to push price above the 20-day EMA ($ 1.39) on June 24th and 25th, suggesting the bears are defending the resistance.

ADA / USDT daily chart. Source: TradingView

The gradually falling 20-day EMA and the RSI in negative territory suggest that the bears have the upper hand. The ADA / USDT pair could see a long liquidation if the bears sink and hold the price below $ 1. That could drop the price to $ 0.68 and then to $ 0.40.

Conversely, if the bulls can push price above the 20-day EMA, it suggests that the short-term trend has tipped in favor of the bulls. The pair could then climb to $ 1.60 and then to the stiff overhead resistance at $ 1.94.

ADA / USDT 4 hour chart. Source: TradingView

The moving averages on the 4-hour chart have flattened and the RSI near the middle suggests that selling pressures are easing. If the bulls push the price above $ 1.40, it indicates the possibility of a short-term bottoming out. The pair could then attempt to rebound to $ 1.60 and then $ 1.88.

Contrary to this assumption, this indicates a lack of buyers at higher levels as the price drops from the current level or from $ 1.40 to below $ 1.20. The pair could then fall to the critical $ 1 support.

SOL / USDT

The long tail on Solana’s (SOL) candlestick on June 22nd shows traders are aggressively defending the 200-day SMA (USD 20). However, the relief rally failed to rise above the 20-day EMA ($ 33), suggesting that bears are selling on rallies.

SOL / USDT daily chart. Source: TradingView

Buyers are currently trying to make a higher low at $ 26.65. If they can push and hold the price above the 20-day EMA, the SOL / USDT pair could gain momentum and climb to the downtrend line and then to $ 44.

However, the falling 20-day EMA and the RSI in negative territory suggest that bears will have other plans. They will try to defend the 20-day EMA and bring the price below $ 26.65. If that support breaks, the pair could fall to $ 21.10.

A strong rebound from this support will suggest the bulls pile up on dips. The pair could then consolidate between $ 21.10 and $ 44 over the next few days.

SOL / USDT 4 hour chart. Source: TradingView

The 20 EMA on the 4-hour chart has flattened and the RSI is near the middle, indicating an equilibrium between buyers and sellers. That balance could tilt in the bulls’ favor if they push and hold the price above $ 33.

Such a move could clear the way for a move to the downtrendline and then to $ 42. On the flip side, if the price drops from current levels or $ 33, the bears will attempt to break the support at $ 26.65. In this case, the advantage could tip in favor of the bears.

MATIC / USDT

Polygon (MATIC) has been trading below the 20-day EMA ($ 1.29) for the past few days, but the positive sign is that the bulls will not drop the price to the May 23rd low of $ 0.74 . This indicates a lack of sellers at the current level.

MATIC / USDT daily chart. Source: TradingView

If the bulls regroup and push the price above the downtrend line, it suggests that the correction may be over. The MATIC / USDT pair could then rise to $ 1.71 and later to the psychological resistance at $ 2.

However, the bears may have other plans. The falling 20-day EMA and the negative RSI suggest that sellers have the upper hand. If they pull the price below $ 0.92, the pair could fall to the $ 0.74 to $ 0.68 support zone.

The cops will likely defend this zone aggressively. A strong rally indicates accumulation at lower levels and the bulls could then attempt to push the price above the downtrend line.

MATIC / USDT 4-hour chart. Source: TradingView

The 4 hour chart shows that the bears are aggressively defending the downtrend line. The falling 20-EMA and the negative RSI indicate an advantage for the bears. If they pull the price below $ 1, the pair could drop to $ 0.92.

Conversely, if the price rebounds from $ 1, the bulls will make another attempt to push the price above the downtrend line. If successful, it suggests that the bulls are trying to make a comeback. The pair could gain momentum on a breakout and close above $ 1.25.

Connected: “Absolutely correct” to call Bitcoin the new gold – Mexico’s third richest man

KLAY / USDT

Klaytn (KLAY) has been trading below the 20-day EMA ($ 1.02) for the past few days, but the RSI is showing a positive divergence. This suggests that the sellers may lose control.

KLAY / USDT daily chart. Source: TradingView

If the bulls are pushing and holding price above the 20-day EMA, it is an indication that a trend reversal is possible. However, the bears are unlikely to give up anytime soon. They will try to stop the rebound in the USD 1.24 to 1.29 zone.

If the price is falling from the overhead zone but is not falling below the 20-day EMA, it suggests that the bulls are trying to make a comeback. A break out of the resistance zone could attract buyers who could then challenge the 200-day SMA ($ 1.51).

A breakout and close above the 200-day SMA indicate that the downtrend may be over in the short term. That positive view will be invalidated if the bears pull the price below $ 0.72.

KLAY / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows that the KLAY / USDT pair is trading within a descending channel. The bulls had driven price above the channel and the 200-SMA but were unable to hold the higher levels.

If the bulls push and hold price above the 20-EMA, the pair could try again to move above the channel and the 200-SMA. If so, the pair could start a new uptrend that could hit $ 1.62.

Contrary to this assumption, if the pair breaks below $ 0.86, the decline could extend to $ 0.72.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk, so you should do your own research when making a decision.

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Orlando residents launch cryptocurrency group to educate and give back to international communities

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From donations to food drives, there are many ways you can give back to communities in need but three Orlando residents are turning to digital tools to support low-income families in developing countries. Chris Delgado, Fabian Kumpusch and Vance Fundora share a vision of rebuilding and impacting communities around the world.”Where can our dollar literally go the furthest?” co-founder of ‘Crypto Impact’ Vance Fundora said. The answer led them to the way they grow their own personal finances – cryptocurrency which is a type of currency that uses digital files as money. The men recently launched their group ‘Crypto Impact’ where they’re traveling abroad to help communities in poverty. “You can literally send money to an individual in need through blockchain technology where banks are shut down and you can’t really wire money like we do here in the states and those countries don’t have a cell or Venmo type thing,” co -founder of ‘Crypto Impact’ Chris Delgado said. “Normally when people donate they’re donating to a bigger cause where they’re providing food for disaster relief,” Delgado said. “This where ‘Crypto Impact’ comes into play we’re delivering specific needs to individuals and we’re there on the ground.”When WESH 2 spoke with Delgado and Fundora, their third business partner was in Vietnam where he was connecting people with clothing, food and clean water. It’s the start of future international projects that will all be funded by digital coins.”It’s just a new industry and it’s a lot of opportunity across the board in terms of technology available,” Fundora said. Being on the ground with the people they’re giving back to is vital for the men so they can educate and raise awareness. “To show not only the beauty behind crypto and bring mass adoption, but also to give in other countries where you can’t necessarily bring in hundred, 200 or 300 hundred dollars but with crypto you can,” Delgado said. The friends have plans to travel and spread ‘Crypto Impact’ to other developing countries in the future.

From donations to food drives, there are many ways you can give back to communities in need but three Orlando residents are turning to digital tools to support low-income families in developing countries.

Chris Delgado, Fabian Kumpusch and Vance Fundora share a vision of rebuilding and impacting communities around the world.

“Where can our dollar literally go the furthest?” co-founder of ‘Crypto Impact’ Vance Fundora said.

The answer led them to the way they grow their own personal finances – cryptocurrency which is a type of currency that uses digital files as money.

The men recently launched their group ‘Crypto Impact’ where they’re traveling abroad to help communities in poverty.

“You can literally send money to an individual in need through blockchain technology where banks are shut down and you can’t really wire money like we do here in the states and those countries don’t have a cell or Venmo type thing,” co -founder of ‘Crypto Impact’ Chris Delgado said.

“Normally when people donate they’re donating to a bigger cause where they’re providing food for disaster relief,” Delgado said. “This where ‘Crypto Impact’ comes into play [because] we’re delivering specific needs to individuals and we’re there on the ground.”

When WESH 2 spoke with Delgado and Fundora, their third business partner was in Vietnam where he was connecting people with clothing, food and clean water.

It’s the start of future international projects that will all be funded by digital coins.

“It’s just a new industry and it’s a lot of opportunity across the board in terms of technology available,” Fundora said.

Being on the ground with the people they’re giving back to is vital for the men so they can educate and raise awareness.

“To show not only the beauty behind crypto and bring mass adoption, but also to give in other countries where you can’t necessarily bring in hundred, 200 or 300 hundred dollars but with crypto you can,” Delgado said.

The friends have plans to travel and spread ‘Crypto Impact’ to other developing countries in the future.

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Bitcoin is ‘not immune’ from stock market volatility (Cryptocurrency:BTC-USD)

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MicroStockHub/E+ via Getty Images

Bitcoin (BTC-USD) has often been hyped as an inflation hedge or as an alternative investing class, an opportunity to diversify a portfolio. However, evidence continues to mount, especially in the recent market downturn, that crypto holds a high correlation with stocks (SP500).

This connection is evidenced by the fact that both bitcoin and equities grinded higher in the easy money era of 2020-2021, and now both are facing cyclical downturns as financial conditions tighten and liquidity dries up.

“The correlation between bitcoin and equity indices has remained high and will continue to do so unless bitcoin becomes widely used as a medium of payment – which looks unlikely to happen soon,” Morgan Stanley analyst Sheena Shah wrote in a note May 10.

For some context, the rolling 120-day correlation between the S&P 500 index (SP500) and bitcoin (BTC-USD) was recently standing at 0.60, the highest reading since the series began in 2011, Charles Schwab Chief Investment Strategist Liz Ann Sonders wrote in a Twitter post May 10. In other words, bitcoin’s price action resembles that of stocks and therefore risk assets. Take a look at the chart below to further grasp how bitcoin has fared Y/Y with the S&P 500 as well as S&P volatility, which is inversely correlated with the major stock index.

For a macro perspective, as central banks across the globe pivot to tighter monetary policy (some more aggressive than others) in an effort to dull widespread inflationary pressures, global money supply growth continues to decelerate from its peak in Feb. 2021, Shah noted, adding that bitcoin’s (BTC-USD) market cap growth topped a month later in March 2021, implying that global liquidity and bitcoin could share a connection.

Note that in 2020, speculative assets like bitcoin soared in price in the wake of extraordinary accommodative monetary/fiscal policy and surging money supply. Stifel recently predicted for bitcoin to reach as low as $15K as shrinking M2 money supply growth, a broad measure of money in circulation, “should sharply weaken Bitcoin.”

Looking at the BTC-stocks correlation from a different lens, retail investors used to be the dominant cryptocurrency trader around four years ago, but now “the largest proportion of daily crypto trading volumes is from crypto institutions, much of which comes from them trading with each other,” Shah explained.

This dynamic has contributed to bitcoin’s (BTC-USD) strong bond with equities since those institutions are sensitive to the availability of capital and therefore interest rates, she added.

Commentary: “We’ve definitely seen [bitcoin] trade more in line with stocks and more in line with the Nasdaq and tech stocks, in particular, over the last few quarters,” Coinbase (COIN) CFO Alesia Haas told CNBC’s Squawk Box in an interview May 12. “Lots of institutional money has come into crypto, and with the broader volatility that we’re seeing, we’ve seen strong correlations,” she added.

Take a look at SA contributor’s The Digital Trend’s bullish take on bitcoin.

Earlier this past week, (May 12) Bill Miller said he hasn’t sold any bitcoin.

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Pros, cons of cryptocurrency mining in upstate New York

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Last month, the New York state Assembly voted to pass Democratic Assemblymember Anna Kelles’ two-year moratorium on new cryptocurrency mining. The idea behind the bill is to give the New York State Department of Environmental Conservation the time to conduct an environmental impact study of the practice.

The bill would prevent new permits from being issued for a very specific kind of cryptocurrency operation, known as carbon-base fueled, proof-of-work mining operations, that use behind-the-meter energy.

The bill still needs to pass in the state Senate and be signed by Gov. Kathy Hochul before it can become law.

The allure of cryptocurrency is that by using blockchain technology, financial transactions are instantaneous, secure and very difficult to trace. But there is a downside to proof-of-work mining: it takes enormous amounts of energy to run the thousands of computers used to “mine” coins.

This is why Assemblymember Kelles said her bill is so narrowly focused.

“This particular type of validation of cryptocurrencies is called proof-of-work, which is synonymous with cryptocurrency mining. There is no other kind of method that is called mining. It has been found across the globe to use phenomenal amounts of energy in comparison to other forms of validation such as proof-of-stake, for example,” Kelles told Capital Tonight.

Cryptocurrency “mining” isn’t mining in the usual sense of the word. It’s millions of computers competing with each other to validate transactions. The more computers a miner has, the greater the advantage — and the more energy used.

Upstate New York is attractive to cryptocurrency miners for a variety of reasons, including abundant clean air and water, relatively cool temperatures and cheap hydroelectric energy with which to power computers.

Upstate New York also has several old power plants that are ready-made to house these mining operations, some of which are being purchased by publicly-traded companies. These companies are re-purposing the power plants to make their own energy “behind the meter,” meaning it is produced and consumed on-site.

“We are a prime target,” Kelles said of upstate.

One of the largest cryptocurrency mining operations in upstate New York is Greenidge Generation, located on the shores of Seneca Lake in the Finger Lakes region. Critics, including Kelles, argue that the crypto-mining taking place at Greenidge is hurting the already established agritourism and wine industry there.

The Greenidge Generation bitcoin mining facility is in a former coal plant by Seneca Lake in Dresden. (AP Photo)

The assembly member also argues that cryptocurrency mining is not a big job creator.

“Mining itself is not a huge job creator because the computers, first of all, are doing all the work. But secondly, what’s really important, is that the algorithm they are running is very simple. It’s not like the algorithm for the Skype app… and therefore it doesn’t take a massive amount of engineering jobs…to maintain,” Kelles said.

“[Cryptocurrency mining] is a very small fraction of jobs compared to [agritourism],” Kelles said.

But cryptocurrency advocates, including Republican Assemblyman Robert Smullen, argue that New York is a world leader in financial services, so why shouldn’t the state lead when it comes to cryptocurrency as well?

Smullen also takes issue with Kelles’ characterization of the jobs created by such operations.

“These are good jobs because they’re electrical jobs, essentially, is what they are, and they’re running all of these facilities,” Smullen explained. “This is a new form of advanced manufacturing.”

Indeed, the union IBEW is a supporter of cryptocurrency mining.

As for Greenidge Generation in particular and its plan to expand from the 17,000 computers it has operating currently, Smullen isn’t concerned.

“[Greenidge] is probably one factory in one small part of one town so I don’t think it’s disrupting any agritourism brand for the beautiful area of ​​the Finger Lakes,” Smullen told Capital Tonight.

What the assemblyman is very concerned about is the possibility of a two-year moratorium on new cryptocurrency operations.

“In this industry, two years is literally light speed in the blink of an eye,” Smullen said. “This industry, financial technical things, they can go anywhere.”

The key, according to the assemblyman, is getting miners to come to New York, and then keeping them here.

“This is commerce that’s very important to the future of financial services industry. During the pandemic, we saw that jobs in New York City, many of them could be done from anywhere. My concern then and my concern now is that we’ve set up a regulatory environment in this state which positively incentivizes the financial services industry, which is going to evolve over time with technology to stay in New York state,” Smullen said.

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