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Analysis

Bitcoin, Ethereum Technical Analysis: BTC Falls To 2-Month Low Following The Latest NFP Report  

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Bitcoin, Ethereum Technical Analysis: BTC Falls To 2-Month Low Following The Latest NFP Report  

Bitcoin fell to its lowest level in over two months, as Friday’s non-farm payrolls report showed an addition of 428,000. It was expected that last month’s payrolls would show an increase of 391,000 jobs — lower than March’s figure of 431,000. ETH also fell on the news, hitting a six-week low.

Bitcoin

Bitcoin fell by nearly 10% in today’s session, as traders continue to react to recent action by the Federal Reserve to hike interest rates.

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Today’s drop, which sees prices of BTC/USD hit an intraday low of $35,714.30, also comes as markets were preparing for the latest non-farm payrolls report.

Friday’s drop sees bitcoin slip for a second consecutive session, with prices now trading at their lowest level since February 24.

BTC/USD – Daily Chart

Despite slipping to a more than two-month low, there could be more declines ahead, as prices appear to be moving toward a floor of $34,050.

Looking at the chart, this latest fall in prices has pushed the RSI towards a one-month low of 35.50, which is a point that has acted as a floor in the past.

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Should this support fail to hold firm, then we will likely see that floor of $34,050 hit in the next few days.

Ethereum

ETH was also submerged by the latest red wave in crypto markets, as prices moved towards a six-week low.

The world’s second-largest cryptocurrency fell to an intraday low of $2,668.60, which is its lowest level since March 16.

Today’s low took prices close to the long-term support level of $2,660, after breaking out of a higher price floor of $2,780.

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ETH/USD – Daily Chart

As prices dropped, relative strength also gave way, with the 14-day RSI slipping below its own floor of 42.80.

Should this floor also fall apart, then we could see even more lows in ETH, with bears already targeting a $2,500 support point.

Overall, since the start of April, ETH/USD has moved from a peak of $3,560, to now trading almost $1,000 lower.

Will we see ETH continue to fall as we head into the weekend? Leave your thoughts in the comments below.

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Eliman Dambell

Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Analysis

Inside GameFi: A deep look at the fast-growing, play-to-earn crypto sector

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Inside GameFi: A deep look at the fast-growing, play-to-earn crypto sector

Edge › Analysis

Diving deep into the overall performance of the GameFi sector in Q1 2022.

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4 min read

Updated: May 25, 2022 at 5:15 am

Cover art/illustration via CryptoSlate

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The crypto industry has seen its fair share of hype cycles, each led by an emerging new sector that promises a revolution in the world of blockchain.

Since the ICO boom of 2017, the industry has seen an equally bombastic DeFi summer in 2020 and an even more hyped NFT rush in 2021.

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Altcoins

Binance Coin [BNB]: Don’t overlook these crucial indicators

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Binance Coin [BNB]: Don’t overlook these crucial indicators

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

As the dust seemingly settled in the altcoin market, Binance Coin’s (BNB) price took shape within a bearish rising wedge (yellow). The end of this tight phase could result in a sharp swing in either direction.

With the price finally breaching the basis line (green) of the Bollinger Bands (BB), the buyers affirmed the gradual increase in their influence. But, with slightly weak indications on its technicals, the buyers need to negate the selling pressure on high volumes.

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At press time, BNB was trading at $315.9, down by 2.97% in the last 24 hours. 

BNB Daily Chart

Source: TradingView, BNB/USDT

After bouncing back from the $268-support, BNB formed a rising wedge on its 4-hour chart. Now, there are two possibilities from this. Should the pattern function as a continuation of the previous downtrend, a further drawdown will be likely. A bearish outcome would expose the alt to a potential test of the Point of Control (POC, red) before any further pulldown.

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To affirm this outcome, bears would need to enforce a close below the lower trendline of the wedge. With the BB looking to curb its current volatility, the potential decline might enter a squeeze phase in the coming sessions.

On the other hand, there are chances for the buyers to step in at the $307-support. This trajectory may be possible due to the alt’s recent streak of higher troughs. An upwards breakout would position BNB toward the $357-level in the days to come. A close above $326 would boost the probability of this upswing.

Rationale

Source: TradingView, BNB/USDT

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The 4-hour RSI was denied a break above its half-line as it plunged lower towards the 44-zone. Furthermore, the -DI moved parallel with the +DI line and suggested that a bearish trend is still active.

Also, capital inflows took a hit while the CMF struggled to cross the zero-mark. However, any bounce-back from its current support range would confirm a bullish divergence.

Conclusion

Looking at its press time setup, BNB tilted slightly towards the selling market. The investors should watch out for a break outside of the current pattern to make any potential calls. Finally, keeping an eye on Bitcoin’s movement and the broader sentiment would be important to complement the aforementioned analysis.

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Altcoins

Stellar: Answer the Q whether HODLing is still the way to go

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Stellar: Answer the Q whether HODLing is still the way to go

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

At the time of writing, Stellar (XLM) was sailing below the lower boundary of its Pitchfork after the latest bearish engulfing candlestick on its daily chart. The latest selling spree has set up a bearish structure for XLM.

Any close below the current pattern could spiral into further losses by paving a pathway towards the $0.12-zone. At press time, XLM was trading at $0.1283.

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XLM Daily Chart

Source: TradingView, XLM/USD

Since XLM flipped towards the south from the $0.4-zone, the bears found renewed pressure to pull the alt and test the $0.16-mark (previous support). After a liquidation streak, the recent bearish phase saw a drawdown from this mark after an over 45% weekly decline towards its 17-month low on 12 May.

With the current structure exhibiting bearishness, the bulls need to make extraordinary efforts to halt the ongoing selling momentum. For this, they still need to propel high buying volumes. The current bearish pennant setup could play spoilsport for recent buying endeavours.

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Any close below the pattern could lead to a near-term pullback towards the $0.12-baseline. Post which, the bulls would be keen to bridge the overextended gap between the 20 EMA (red) and the 50 EMA (cyan). In this case, a close above the Pitchfork would reignite the possibilities for any recovery. 

Rationale

Source: TradingView, XLM/USD

The RSI underlined a visible selling edge while compressing in the 36-41 range. The investors/traders must watch out for a break beyond the current bounds to enter either buy/sell calls.

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Over the last four days, the bearish CMF marked lower peaks on the daily timeframe. But, any bounce-back from the -0.1-mark would confirm the existence of a bullish divergence with the price.  

Conclusion

Looking at the prevailing bearish pattern coupled with weak buying volumes, sustaining a rally for the bulls would be relatively tougher. Any break below the pennant could lead to short-term losses or an extended tight phase before the buyers show up. 

Besides, investors/traders should factor in the broader market sentiment and on-chain developments to make a profitable move.

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With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

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