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Bear Market

Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?

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Ether Drops Below $1K, Dragged Down By BTC Slide – What’s The Next ETH Support?

The cryptocurrency market is still stunned by last week’s precipitous decline. In 10 days, Ether shed around 45 percent of its value.

On the four-day chart, the Ethereum (ETH) price has now returned to the historical RSI low recorded in 2018 when the cryptocurrency traded at $81.

On Saturday, ETH values fell below crucial levels and are currently trading in the triple digits as the recent crypto sell-off continued.

According to data provided by Coingecko, as of the time of writing, ETH is trading at $1,008, a decrease of about 40 percent over the past week.

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Suggested Reading | Bitcoin Breaches $19K Level – Will Selloff Continue? What’s The Next Bottom?

Ether Drops To As Low As $997

ETH is currently selling at $997.61 on Etherscan, a decrease of approximately 9 percent over the last 24 hours. The breach of this support level is expected to presage heavier losses for Ethereum.

The bears are in complete control of the market, and there are no major buyers.  In the bearish scenario, if sellers force the price below $900, the probable demand zone is between $700 and $900.  Upon reaching this region, ETH may enter the accumulation phase.

Currently, inflation, a wobbly stock market, rising interest rates, and worries of a recession are fueling negative sentiment on the stock and cryptocurrency markets.

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ETH total market cap at $122 billion on the daily chart | Source: TradingView.com

A Shot At $1,700 In A Bullish Scenario

In a bullish situation, ETH will certainly approach $1,700 in static resistance. The ability to overcome this barrier depends on the purchasing power of the market.

This eventuality seems unlikely given that the current macroeconomic climate has caused investors to view high-risk assets with skepticism.

Recent reports indicate that Ether’s developers have opted to delay the network’s move to a proof-of-stake (PoS) consensus while the bear market persists.

This improvement is anticipated to terminate the reliance on proof-of-work (PoW) mining and the Merge scalability solution, which has been in development for six years.

Suggested Reading | Bitcoin At $20K Could Be ‘New Bottom,’ Commodity Expert Suggests, And Here’s Why

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Heavy Market Liquidation Pulls Down ETH

The recent decline of ETH, the second-largest cryptocurrency, is due to the liquidation of a significant investment, possibly by Three Arrows Capital. The liquidation led to a substantial sum of ETH being unloaded on the open market.

After the Federal Reserve raised interest rates by 75 basis points, the highest increase in the last three decades, the stock market inched up Wednesday afternoon.

According to Edward Moya, a senior market analyst at OANDA, the fact that the cryptocurrency market did not follow is “worrying for some investors.”

Analysts estimate that Bitcoin and Ether can decline up to 85 percent during bear markets.

Due to the impossibility of market prediction and timing, there is never an “ideal” time to buy in cryptocurrencies. However, according to analysts, now could be a good time to enter the market because prices are cheap.

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Featured image from Arch20, chart from TradingView.com

APE

ApeCoin Shed $2.5 Billion From Its Market Cap In May – Investor Appetite Fading?

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ApeCoin Shed $2.5 Billion From Its Market Cap In May – Investor Appetite Fading?

The month of May’s crypto market disaster did not fail to bring down along with it one of the “rising stars” in the crypto space, ApeCoin.

ApeCoin price has shown a robust performance in the face of the crippling crypto market crash. However, the bulls were still able to lift APE by about 50% higher from the coin’s low at $3.11.

As of this writing, APE was trading at $4.25, up 4.1% in the last seven days, and selling just below the newly established swing high at $4.35.

Suggested Reading | Bitcoin Steady Above $20K After Drop To $17K – A Slow Climb To Green?

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ApeCoin Market Cap Down By Half

Thursday’s data from Coingecko indicates that ApeCoin is among the top 50 crypto assets by market capitalization, having closed May with a market value of around $1.27 billion.

As a result of the decline in the value of other digital currencies, this amount appears large, but it reflects a 56 percent decline from its market value. APE’s high trading volume of $3.37 billion as of May 1 translated to a market value in excess of $4.55 billion.

A high volume of liquidation by coin holders rose on May 1 and accelerated from May 9 to 13, contributing significantly to the decrease in APE’s market value.

Experts say this is because of the broader geopolitical and global climate, including uncertainties in the ongoing war in Ukraine, among other factors.

Factors Contributing To APE Price Decline

It’s not just in the crypto field that things are not looking bright. Living expenses are growing, interest rates are rising, a recession is approaching, and inflation is skyrocketing. The US S&P 500 is currently in a bear market, and stock markets are shaky as well.

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APE total market cap at $1.27 billion on the daily chart | Source: TradingView.com

According to a number of market analysts, these are some of the causes chipping away at the value of APE.

On May 1, APE began at $20.02, achieved an intraday high of $20.04, dropped 21 percent to an intraday low of $15.69, and ended at $15.97.

As a result of losing more than one-fifth of its value on the first trading day of the month, APE was unable to recover and continued to fall throughout the rest of May, reaching new lows.

Suggested Reading | Dogecoin Price Jumps As Elon Musk Reiterates Support For Meme Crypto At Qatar Forum

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APE began trading on May 1 at $20.02, achieved a monthly top of $20.04 on the same day, hit a monthly low of $5.25 on May 11, and finished the month at $6.76.

This represents a 66 percent decline between the opening and closing prices of APE in May.

Featured image from Gravitate.news, chart from TradingView.com

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Bear Market

By The Numbers: The Worst Bitcoin Bear Markets Ever

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By The Numbers: The Worst Bitcoin Bear Markets Ever

Bitcoin is now officially in another bear market after the crash that rocked the market last week. After falling more than 70% from its all-time high, investors across the space had started to retreat from the digital asset due to this new price trend. However, trends like these are not new for bitcoin. Although the present market may seem worse than previous ones due to it still ongoing, there have been some brutal bear markets in the past.

A Blast From The Past

It can often be helpful to take a look at the previous market cycles for bitcoin to see that this is nothing out of the ordinary. Yes, the bull and bear trends of this market have deviated from what has been recorded in history but it still remains very similar to what has been recorded in the past.

For bitcoin, the alternation between bear and bull markets has always been part of the experience. It has been through several of these boom-bust cycles in its 13 years in existence and it is not expected to change anytime soon.

Related Reading | Over $250 Million In Liquidations As Bitcoin Recovers Above $20,000

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Bitcoin has so far lost about 73% from its most recent cycle peak but it is not the first time that something like this is happening. Looking back to the November 2013 market shows that bitcoin had actually continued to decline until it finally ended its 407-day losing streak with a bottom at 85% of its all-time high value. This had marked the end of that stretched-out bull market.

For those in the market, the 2017 bull-bear cycle is fresher in their minds compared to 2013. However, like in 2013, the drawdown was just as brutal, although lasting a shorter time. What had lasted for approximately a year had ended with poor performance of an 84% bottom. 

BTC bear markets are always brutal | Source: Arcane Research

Since the digital asset continues to maintain this trend closely, it is expected that the drawdown will continue. Going by the previous two examples, one can easily draw a conclusion that a historical movement will see bitcoin bottom out in the mid -80s. Thus, the bottom is most likely not in and the market is likely to see BTC at $11,000 before the expected market bottom in late 2022.

Will Bitcoin Follow?

While looking at previous movements can help point a direction where the price of bitcoin might end up, there are always new information and events that can heavily impact it. For one, the macroeconomic atmosphere has been a big player in the movement of the digital asset in recent terms. As fears around inflation, fed rate hikes, and less liquidity circle the market, bitcoin had been directly impacted by this.

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BTC enters bear market | Source: BTCUSD on TradingView.com

This has led to a more intertwined market when it comes to bitcoin and the broader financial markets. As the cryptocurrency space grows larger, it is experiencing greater implications from the Fed decisions, stock market performance, U.S. elections, and crypto regulations that have been ramping up.

Related Reading | Cardano Vasil Hard Fork Launch Date Set, Time To Buy The News?

Nevertheless, the long-term play for bitcoin remains the best bet. As emotions run high, bitcoin veterans take to accumulating and hibernating while waiting for winter to pass. If history is anything to point to, by the next bull market, the price of bitcoin could reach as high as $200,000.

Featured image from Forbes, charts from Arcane Research and TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

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99bitcoins

‘Bitcoin Is Dead’ Google Searches Skyrocket, Bitcoin Obituaries Records 15 Deaths This Year

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‘Bitcoin Is Dead’ Google Searches Skyrocket, Bitcoin Obituaries Records 15 Deaths This Year

According to the Bitcoin Obituaries list, bitcoin has died 15 times in 2022, and the last obituary written about bitcoin’s death was on June 18, in a recent statement that said: “Bitcoin Will Not Recover.” Interestingly, Google Trends data shows that the search phrase “bitcoin is dead,” is estimated to hit an all-time high this week.

The Old Saying ‘Bitcoin Is Dead’ Comes Back to Life

In recent times, you may have heard the phrase “bitcoin is dead,” or something similar. A great number of people truly believe that bitcoin is dead while many believe the crypto asset is the future of money. The past two weeks have been gruesome for bitcoin as prices dropped to a low of $17,593 per unit.

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The analytics company Glassnode shows the losses during the last three days have been massive. “The last three consecutive days have been the largest USD denominated Realized Loss in bitcoin history,” Glassnode detailed. “Over $7.325B in BTC losses have been locked in by investors spending coins that were accumulated at higher prices.”

Meanwhile, two days ago, the Bitcoin Obituaries list hosted on 99bitcoins.com indicates that bitcoin has recorded its 15th death of the year. The obituary statement was written by the gold bug and economist Peter Schiff via Twitter. Schiff has always thought bitcoin is worthless and he has said multiple times that BTC’s price is headed to zero. Schiff’s recent bitcoin obituary called “Bitcoin Will Not Recover,” says the current crypto crash is just the beginning. Schiff’s obituary statement says:

Long-term bitcoin HOLDers aren’t worried as they’ve been through 73% declines before. But previous declines didn’t involve anywhere near the total market cap lost during this decline, nor did they involve massive leverage. This crash is just beginning. Bitcoin will not recover.

‘Bitcoin Is Dead’ Google Searches Estimated to Rise Significantly This Week

Bitcoin.com News recently reported on Schiff’s bitcoin opinion last week when he said crypto advocates’ “need to sell bitcoin to pay the bills will only get worse as the recession deepens.” Google Trends data shows that there’s been an awful lot of “bitcoin is dead” searches and this week’s GT data score for the phrase “bitcoin is dead” is expected to hit an all-time high.

The last time GT data had shown the search phrase reach a high was during the Terra blockchain fiasco, and during the week of May 8-14, the search phrase “bitcoin is dead” reached a 38 out of 100. So far, according to the Bitcoin Obituaries list hosted on 99bitcoins.com, 2022’s list beats 2020, 2012, 2011, and 2010.

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2021 saw approximately 47 obituaries and 2020 saw only 14. The lowest number of deaths was in 2010 with a single obituary called “Why Bitcoin can’t be a currency,” which was published on December 15 that year. To date, bitcoin has died 455 times so far according to the Bitcoin Obituaries list.

Tags in this story

99bitcoins, Bear Market, Bitcoin, Bitcoin (BTC), Bitcoin bears, Bitcoin bulls, Bitcoin Dead, Bitcoin Eulogy, Bitcoin Obituaries, Bitcoin Price, BTC death, Google Trends Data, Independent author, Market Carnage, Markets, Peter Schiff, Prices

What do you think about the ‘bitcoin is dead’ statement and the Bitcoin Obituaries list? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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