Bitcoin (BTC) failed to reclaim $30,000 into May 14 as traders looked forward to a relatively stable weekend.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitfinex longs gather strength

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it lingered below the $30,000 mark, now rapidly becoming resistance.

The pair had reached just shy of $31,000 before retracing, while the end of the traditional market trading week had been accompanied by fresh warnings of a new macro low still to come.

Not everyone stayed on the sidelines as the dust settled. On major exchange Bitfinex, long leverage continued expanding, having already hit all-time highs.

“Another day has passed and the Bitfinexors are still loading up as if someone has a gun to their head,” commentator Johal Miles reacted alongside a chart showing the trend.

Terra plans spark frenetic LUNA moves

Attention nonetheless focused more on Blockchain protocol Terra’s LUNA token on the day.

Related: BitKwonnect? ‘Luna Brothers’ moment sees Terra inflate token supply 3,500% overnight

After losing practically all of its value in a week, LUNA saw a rebound which was tiny compared to its all-time highs above $100 but hugely lucrative for short-term traders.

Despite its supply ballooning to 6.9 trillion tokens, LUNA subsequently appreciated 100 times from its floor price on news that creator Terra had plans to “revive” its ecosystem.

Faced with the price action, many were in disbelief.

“The volatility on $LUNA is absolutely insane,” Cointelegraph contributor Michaël van de Poppe commented, adding that it was a “great weekend to scalp trade a little.”

LUNA/USD 5-minute candle chart (Bitfinex). Source: TradingView

With trading already halted on major exchange Binance, LUNA/USD nonetheless remained a highly risky portfolio addition, with prices varying wildly minute to minute and between trading venues.

Those buying in on the majority of occasions through the week conversely faced near total losses on their positions.

At the time of writing, LUNA/USD traded at $0.027 on Bitfinex, having risen to $0.034 earlier in the day — 593% above the week’s all-time lows of $0.0049.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.




Cointelegraph By William Suberg

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Innovations in the crypto space appear daily. Whether through decentralized applications or new ways to implement and use nonfungible tokens (NFTs) within decentralized finance, blockchain technology is innovating at the speed of light. The only thing missing? Widespread adoption. One thing holding this back is the very public nature of the blockchain. DeFi, as it operates now, lacks meaningful privacy. In order to catalyze broad adoption for businesses, governments and individuals, those executing blockchain transactions should expect regular, consistent privacy.

First, we need to define what privacy means. It does not mean pseudonymity, which cryptocurrency purports to have now. Meaningful privacy means that a personal financial account will not be traced and an individual’s wealth will not be exposed. It means a business can protect trade secrets. Privacy means a government’s finances are the business of its people — not the business of dangerous neighbors.

Related: In crypto, no one cares who you are: Here’s why that’s a good thing

Cryptocurrency is just that — a currency. With the Canadian trucker convoy and the Russian war on Ukraine bringing about a crypto vibe shift, it will continue to be treated as a currency regardless of whether it is regulated as one. It is a financial asset, and our current understanding of personal financial privacy supports the move toward privacy across DeFi. The European Union has adopted the General Data Protection Regulation, to which every internet entity operating within the EU is beholden. On a more traditional level, fiat banks have multiple privacy protocols, many of which are subject to human error. Privacy is natural, and often unvalued until it is removed.

Privacy is crucial for corporate crypto transactions

It’s impossible to deny that corporations and large traditional financial institutions are pivoting to crypto, with news that giants such as Commerzbank are applying for crypto custody business licenses. Corporate treasuries are starting to see the benefits of using crypto for solving a problem that has plagued them for decades: instantaneous cross-border payments. Lack of privacy for those transactions will stunt broader adoption because until the privacy of such institutional transactions is secured, it will remain a niche offering.

Companies have a right to protect trade secrets, including those related to finance and payments to employees and contractors. Hedge funds, which will benefit enormously from moving assets onto the blockchain, must be able to protect their financial movements. If every asset movement can be tracked, private businesses are unable to protect themselves, and competition is diluted. It is just as reasonable to expect privacy in business as it is to expect privacy for individuals. As crypto experiences wider adoption, it will continue to be stunted every step of the way until the problem of privacy is solved.

Related: The loss of privacy: Why we must fight for a decentralized future

Privacy does not threaten regulation

The good news is that it is possible for privacy in DeFi to be both responsible and secure. We all know that regulation is growing, and as frustrating as they can be for the Wild West of blockchain projects, guardrails can enable growth. People do not trust something they do not understand, so when regulations come, they signal that the people leading governments know what’s happening and what needs to be overseen. That is a good thing. Governments can — and should — regulate crypto exchanges, fiat on- and off-ramps, and individuals who are subject to local, regional and federal laws wherever they reside. Privacy does not threaten or disable regulation. Governments codify privacy on social networks. Why should financial networks be an exception?

The bottom line is that once DeFi is secure and can be used privately, people will feel more comfortable using crypto. Because people do not trust something they do not understand, we have to invite them using the paradigm of expectation that comes with other financial endeavors. Another way we can invite people into the space is by disconnecting the argument for privacy from the discussion of anonymity. This will help resolve the problem new adopters face when they falsely consider crypto to be an easy way to facilitate illegal transactions. Until there is a reasonable expectation of privacy, DeFi will remain a risky venture for both private parties and businesses.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Kieran Mesquita is chief scientist at Railgun, a decentralized smart contract project that brings privacy to cryptocurrencies operating seamlessly with DeFi. He has an extensive background in developing technologies for blockchain and DeFi projects. He was an early adopter of Bitcoin and one of the first people to develop its GPU mining software.


Cointelegraph By Kieran Mesquita

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Further distancing itself from any concerns of planned attacks on the blockchain, the Bitcoin (BTC) network established a new mining difficulty all-time high of 31.251 trillion — exceeding the 30-trillion mark for the first time in history.

The creator of Bitcoin, Satoshi Nakamoto, warranted the security of the BTC network through a decentralized network of BTC miners who are tasked with confirming the legitimacy of transactions and minting new blocks.

Given the extensive community support — from developers to hodlers to traders to miners — that spans over 13 years, the BTC network was witness to a historic 10-month-long rally as it achieved mining difficulty of 31.251 trillion.

Bitcoin network difficulty. Source: Blockchain.com

Mining difficulty safeguards the BTC ecosystem against network attacks such as double-spending, wherein bad actors try to reverse confirmed transactions over the BTC blockchain. Greater mining difficulty demands higher computational power from miners to confirm transactions over the BTC network.

As a result, BTC’s latest network difficulty ATH makes it nearly impossible for bad actors to represent over 50% of the hash rate. According to blockchain.com, the BTC network demands 220.436 million terahashes/second (TH/s) at the time of writing.

Bitcoin total hash rate. Source: Blockchain.com

Despite the crypto community’s concerns related to the ongoing targeted attacks and an active bear market, BTC continues to position itself as the most resilient blockchain network. 

Related: 42.5K BTC reportedly moved from Luna Foundation Guard wallet as UST peg crumbles

Roughly $1.4 billion worth of BTC was reportedly moved from a wallet tied to Luna Foundation Guard (LFG) as the community announced their intent to “proactively defend the stability of the UST peg [and] broader Terra economy.”

Terra’s ecosystem of tokens took a nosedive as the stablecoin UST depegged from its initial $1 value to nearly $0 in a matter of days, sparking commotion among the LUNA and UST investors.

While Terra co-founder Do Kwon attributed the market collapse to coordinated attack against the protocol, current plans for reviving the UST and LUNA ecosystems involve purchasing and redistributing BTC based on requirement.


Cointelegraph By Arijit Sarkar

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Altcoins saw a relief bounce on May 13 as the initial panic sparked by Bitcoin’s sell-off Terra’s UST collapse and multiple stablecoins losing their dollar peg begins to decrease and risk loving traders look to scoop up assets trading at yearly lows.

Daily cryptocurrency market performance. Source: Coin360

Despite the significant correction that occurred over the past week, Bitcoin (BTC) bulls have managed to claw their way back to the $30,000 zone, a level which has been defended multiple times during the 2021 bull market.

Here’s a look at what several analysts have to say about the outlook for Bitcoin moving forward as the price attempts to recover in the face of multiple headwinds.

Is a short squeeze pending?

Insight into the minds of derivatives traders was provided by cryptocurrency analytics platform Coinalyze, which assessed Bitcoin long to short positions for BTC/USD perpetual contracts on ByBit.

BTC/USD perp 1-day chart vs. long/short BTC/USD accounts ratio. Source: Twitter

As shown in the lower half of the chart above, the interest in shorts, which is represented in red, has surged during the recent market downturn indicating that derivatives traders expected more downside in the short term.

“The sentiment was very negative over the last few days, as seen in ByBit long/short ratio and funding rate. A short squeeze/bounce is expected” Coinalyze founder Gabriel Dodan told Cointelegraph in private comments.

A short-term breakout to $35K is expected

Bitcoin’s dip to $26,716 on May 12 was notable in that it broke below the May 2021 low at $28,600, “which was seen as the last man standing for BTC” according to David Lifchitz, managing partner and chief investment officer at ExoAlpha.

In Lifchitz’s view, the bounce seen on May 13 was to be expected as “a lot of bad news had been flushed out” while the “panic move from the UST fiasco has already occurred.”

Bitcoin sitting at the May 2021 lows “seems like a good entry point here with a tight stop should the purge continue” according to Lifchitz, but traders shouldn’t expect a return to $60,000 to happen overnight and instead should set a more modest short term target of $35,000.

Lifchitz said,

“Long at $28.5K / Stop at $26.5K / Profit Target at $34.5K = $6K upside / $2K downside = 3/1 win/loss ratio and from an investment point of view, it looks compelling to me.”

Related: Buy the dip, or wait for max pain? Analysts debate whether Bitcoin price has bottomed

A V-shaped recovery is unlikely

Insight into what it would take for Bitcoin to regain its bullish momentum was provided by market analyst and pseudonymous Twitter user ‘Rekt Capital’, who posted the following chart noting that BTC “needs to keep $28,600 as support for the price to challenge $32,000,” while a “weekly close below the green would be bearish.”

BTC/USD 1-week chart. Source: Twitter

While many optimistic traders are hoping for a rapid recovery from this latest downturn, Rekt Capital warned that “by standards of history, a sharp V-Shaped recovery to mark out a generational bottom is less likely.”

The analyst said,

“Many expect one as the previous March 2020 BTC bear market bottom was very volatile. But macro price history suggests extended ranges are more likely.”

The overall cryptocurrency market cap now stands at $1.287 trillion and Bitcoin’s dominance rate is 44.4%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.




Cointelegraph By Jordan Finneseth

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This week the crypto market endured a sharp drop in valuation after Coinbase, the leading U.S. exchange reported a $430 million quarterly net loss and South Korea announced plans to introduce a 20% tax on crypto gains.

During its worst moment, the total market crypto market cap faced a 39% drop from $1.81 trillion to $1.10 trillion in seven days, which is an impressive correction even for a volatile asset class. A similar size decrease in valuation was last seen in February 2021, creating bargains for the risk-takers.

Total crypto market capitalization, USD billion. Source: TradingView

Even with this week’s volatility, there were a few relief bounces as Bitcoin (BTC) bounced 18% from a $25,400 low to the current $30,000 level and Ether (ETH) price also made a brief rally to $2,100 after dropping to a near-year low at $1,700.

Institutional investors bought the dip according to data from the Purpose Bitcoin ETF. The exchange-traded instrument is listed in Canada and it added 6,903 BTC on May 12, marking the largest single-day buy-in ever registered.

On May 12, the United States Treasury Secretary Janet Yellen stated that the stablecoin market is not a threat to the country’s financial stability. In a hearing of the House Financial Services Committee, Yellen added:

“They present the same kind of risks that we have known for centuries in connection with bank runs.”

The total crypto capitalization down 19.8% in seven days

The aggregate market capitalization of all cryptocurrencies shrank by 19.8% over the past seven days, and it currently stands at $1.4 trillion. However, some mid-capitalization altcoins were decimated and dropped more than 45% in one week.

Below are the top gainers and losers among the 80 largest cryptocurrencies by market capitalization.

Weekly winners and losers among the top-80 coins. Source: Nomics

Maker (MKR) benefited from the demise of a competing algorithmic stablecoin. While TerraUSD (UST) succumbed to the market downturn, breaking its peg well below $1, DAI remained fully functional.

Terra (LUNA) faced an incredible 100% crash after the foundation responsible for administering the ecosystem reserve was forced to sell its Bitcoin position at a loss and issue trillions of LUNA tokens to compensate for its stablecoin breaking below $1.

Fantom (FTM) also faced a one-day 15.3% drop in the total value locked, the amount of FTM coins deposited on the ecosystem’s smart contracts. Fantom has been struggling since prominent Fantom Foundation team members Andre Cronje and Anton Nell resigned from the project.

Tether premium shows trickling demand from retail traders

The OKX Tether (USDT) premium indirectly measures retail trader crypto demand in China. It measures the difference between China-based USDT peer-to-peer trades and the official U.S. dollar currency.

Excessive buying demand puts the indicator above fair value, which is 100%. On the other hand, Tether‘s market offer is flooded during bearish markets, causing a 2% or higher discount.

Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKX

Currently, the Tether premium stands at 101.3%, which is slightly positive. Furthermore, there has been no panic over the past two weeks. Such data indicate that Asian retail demand is not fading away, which is bullish considering that the total cryptocurrency capitalization dropped 19.8% over the past seven days.

Related: What happened? Terra debacle exposes flaws plaguing the crypto industry

Altcoin funding rates have also dropped to worrying levels. Perpetual contracts (inverse swaps) have an embedded rate that is usually charged every eight hours. These instruments are retail traders‘ preferred derivatives because their price tends to perfectly track regular spot markets.

Exchanges use this fee to avoid exchange risk imbalances. A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

Seven-day accumulated perpetual futures funding rate. Source: Coinglass

Notice how the accumulated seven-day funding rate is mostly negative. This data indicates higher leverage from sellers (shorts). As an example, Solana‘s (SOL) negative 0.90% weekly rate equals 3.7% per month, a considerable burden for traders holding futures positions.

However, the two leading cryptocurrencies did not face the same leverage selling pressure, as measured by the accumulated funding rate. Typically, when there‘s an imbalance caused by excessive pessimism, that rate can easily move below negative 3% per month.

The absence of leverage shorts (sellers) in futures markets for Bitcoin and Ethereum and the modest bullishness from Asian retail traders should be interpreted as extremely healthy, especially after a -19.8% weekly performance.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.


Cointelegraph By Marcel Pechman

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Its’ been a rough week for the cryptocurrency market, primarily because of the Terra ecosystem collapse and its knock-on effect on Bitcoin, Ethereum and altcoin prices, plus the panic selling that took place after stablecoins lost their peg to the US dollar.

The bearish headwinds for the crypto market have been building since late 2021 as the US dollar gained strength and the United States Federal Reserve hinted that it would raise interest rates throughout the year.

According to a recent report from Delphi Digital, the 14-month RSI for the DXY has now “crossed above 70 for the first time since its late 2014 to 2016 run up.”

DXY index performance. Source: Delphi Digital

This is notable because 11 out of the 14 instances where this previously occurred “led to a stronger dollar ~78% of the time over the following 12 months,” which points to the possibility that the pain for assets could get worse.

On average, the DXY gained roughly 5.7% after its RSI rose above 70, which from today’s reading “would put the DXY Index just shy of 111, its highest level since 2002.”

BTC/USD vs. DXY Index (inverted) and a rolling 60-day correlation. Source: Delphi Digital

Delphi Digital said,

“Assuming the correlation between the DXY and BTC remains relatively strong, this would not be welcoming news for the crypto market.”

Bitcoin is at a key area for price bottoms

Taking a more big picture approach, Bitcoin (BTC) is now retesting its 200-week exponential moving average (EMA) near $26,990, which has “historically served as a key area for price bottoms” according to Delphi Digital.

BTC/USD vs. 200-week EMA vs. 14-week RSI. Source: Delphi Digital

Bitcoin is also continuing to hold above its long-term weekly support range of $28,000 to $30,000 which has proven to be a strong area of support throughout the recent market turmoil.

While many traders have been panic selling in recent days, Pantera Capital CEO Dan Morehead has taken a contrarian approach, noting that, “It’s best to buy when price is well below trend. Now is one of those times.”

Bitcoin fund inflows relative to price trend. Source: Twitter

Morehead said,

“Bitcoin has been this “cheap” or cheaper relative to trend only 5% of time since Dec 2010. If you have the emotional and financial resources, go the other way.”

A word of caution was offered by Delphi Digital, however, which noted that “the best opportunities or ‘deals’ in the market are not around for long.”

Since BTC has been trading in the $28,000 to $30,000 range for an extended period of time, “the longer we see price build in these areas, further continuation becomes more likely.

If further decline occurs, the “weekly structure and volume structure support at $22,000 to $24,000” and the “2017 all-time high retests of $19,000 to $24,000” are the next major areas of support.

Delphi Digital said,

“Early signs of capitulation are starting to bleed through, but we can’t say we’re nearing the point of max pain just yet.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.




Cointelegraph By Jordan Finneseth

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Bitcoin (BTC) rebounded sharply after dropping near its realized price of $24,000 on May 12, suggesting some bulls went against the herd and bought the dip. According to on-chain analytics platform CryptoQuant, the exchange balances declined by more than 24,335 Bitcoin on May 11 and 12, indicating that bulls may have started bottom fishing.

However, macro investor Raoul Pal is not confident that a bottom has been made. In an exclusive interview with Cointelegraph, Pal said that if equity markets witness a capitulation phase, crypto markets are also likely to plunge before forming a bottom. He anticipates the current bear phase to end after the United States Federal Reserve stops hiking rates.

Daily cryptocurrency market performance. Source: Coin360

Bear markets are known for sharp relief rallies, which are used to lighten up long positions or initiate short positions. The price eventually turns down and makes a new low. Bottoms are only confirmed in hindsight. Therefore, investors may consider accumulating in phases rather than going all-in during a bear market.

Right now, investors want to know what important overhead levels that may act as resistance. Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin bounced off $26,700 on May 12 and formed a Doji candlestick pattern. This suggests that the selling pressure could be reducing. The recovery picked up steam on May 13 and bulls pushed the price above the psychological level at $30,000.

BTC/USDT daily chart. Source: TradingView

The relief rally may face resistance near $33,000 and again at the 20-day exponential moving average (EMA) ($34,903). If the price turns down from the overhead resistance, the bears will make another attempt to sink the BTC/USDT pair below $26,700 and resume the downtrend.

If they manage to do that, the selling could accelerate and the pair may drop to $25,000 and later to $21,800.

Contrary to this assumption, if bulls arrest the next decline above $28,805, it will suggest accumulation on dips. That could enhance the prospects of a break above the 20-day EMA. If that happens, the pair may rally to the 50-day simple moving average (SMA) ($40,210).

ETH/USDT

Ether (ETH) broke below the $2,159 support on May 11 and later slipped below the psychological level at $2,000 on May 12. The bulls bought the dip to $1,800, which has started a relief rally.

ETH/USDT daily chart. Source: TradingView

The buyers will now attempt to push the price above the breakdown level at $2,159. If they succeed, the ETH/USDT pair could pick up momentum and rally to the 20-day EMA ($2,554). This is an important level to keep an eye on because a break and close above it will suggest that the decline may be over.

Contrary to this assumption, if the price turns down from the current level or the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling near overhead resistance levels. The bears will then again try to sink the pair below $1,700.

BNB/USDT

BNB fell sharply on May 12 but the long tail on the day’s candlestick shows that bulls aggressively defended the critical support at $211. This started a relief rally that has reached the $350 to $320 resistance zone.

BNB/USDT daily chart. Source: TradingView

If bulls drive the price above $350, it will suggest that the decline may be over. The recovery could thereafter reach $413. Such a move could indicate that the BNB/USDT pair may remain stuck inside a large range between $211 and $692.

Contrary to this assumption, if the price turns down from the overhead resistance zone, it will suggest that bears are active at higher levels. The price could then gradually drift down to the crucial support at $211. The bears will have to sink the price below this level to start a new downtrend that may reach $175 and later $150.

XRP/USDT

Ripple (XRP) nosedived to $0.33 on May 12 when buying emerged. The bulls are attempting a recovery that is likely to face stiff resistance at the psychological level at $0.50.

XRP/USDT daily chart. Source: TradingView

If the price turns down from $0.50, the bears will again attempt to pull the XRP/USDT pair to $0.33. This is an important level for the bulls to defend because a break below it could result in a decline to $0.24.

Conversely, if buyers propel the price above $0.50, the pair could rally to the 20-day EMA ($0.56). A break and close above this level will suggest that the bulls are back in the game. The pair could then rise to the 50-day SMA ($0.70).

ADA/USDT

Cardano (ADA) plunged to $0.40 on May 12, which pulled the RSI into the deeply oversold territory. The buyers bought this dip and are attempting to start a relief rally.

ADA/USDT daily chart. Source: TradingView

The ADA/USDT pair could rise to the breakdown level at $0.74, which is an important level to keep an eye on. If the price turns down from this resistance, it will suggest that the bears have not yet given up and they are selling on rallies. The pair could then retest the strong support at $0.40.

Contrary to this assumption, if bulls propel the price above $0.74, it will indicate that the bears may be losing their grip. The pair could then rally to the psychological level at $1 where the bears are again expected to mount a strong defense.

SOL/USDT

Solana (SOL) has been in a strong downtrend for the past few days. The price dipped to $37 on May 12, which pulled the RSI deep into the oversold territory. This started a relief rally on May 13.

SOL/USDT daily chart. Source: TradingView

The bulls are likely to encounter selling in the zone between the 38.2% Fibonacci retracement level at $59 and the 50% retracement level at $66. If the price turns down from this zone, the bears will attempt to resume the downtrend by pulling the pair below $37. If they can pull it off, the SOL/USDT pair could drop to $32.

Contrary to this assumption, if the price breaks above $66, the recovery could extend to the breakdown level at $75. The bulls will have to overcome this barrier to signal that the downtrend may be coming to an end.

DOGE/USDT

Dogecoin (DOGE) plummeted to $0.06 on May 12 but a minor positive is that the bulls purchased this dip. This started a relief rally which reached near the breakdown level at $0.10.

DOGE/USDT daily chart. Source: TradingView

The long wick on the May 13 candlestick indicates that the bears are defending the $10 level aggressively. If the price turns down from this resistance, the bears will attempt to resume the downtrend by pulling the DOGE/USDT pair below $0.06. If they manage to do that, the next stop could be $0.04.

Alternatively, if bulls drive the price above $0.10, the pair could rise to the 20-day EMA ($0.12). This is an important level to keep an eye on because a break and close above it could suggest the start of a stronger recovery.

Related: 3 reasons why Cardano can sink further despite ADA price bouncing 58%

DOT/USDT

Polkadot (DOT) has been in a downtrend for the past several days. The buyers stepped in to arrest the decline near the strong support at $7 on May 12 as seen from the long tail on the day’s candlestick.

DOT/USDT daily chart. Source: TradingView

The buyers will now try to sustain the price above the breakdown level at $10.37. If they succeed, the DOT/USDT pair could rise to the 20-day EMA ($13.68). This level is likely to attract strong selling by the bears. If the subsequent decline halts at $10.37, it will indicate that the downtrend may be weakening.

Conversely, if the price turns down sharply from the current level or the 20-day EMA, it will increase the possibility of a retest at $7. Below this level, the decline could extend to $5.

AVAX/USDT

Avalanche (AVAX) broke below the crucial support at $32 on May 11 and bears tried to resume the decline on May 12. However, the long tail on the day’s candlestick suggests strong buying at lower levels.

AVAX/USDT daily chart. Source: TradingView

The bulls have pushed the price above the breakdown level at $32, which is the first sign of strength. If the AVAX/USDT pair sustains above $32, the bulls will attempt to push the price to the overhead resistance at $51. The bears are likely to defend this level with vigor.

Alternatively, if the price turns down from the 38.2% Fibonacci retracement level at $41.09, it will suggest that the sentiment remains negative and bears are selling on rallies. The pair could then again retest the strong support at $32 and later $23.

SHIB/USDT

Shiba Inu (SHIB) plunged below the psychological level at $0.000010 on May 12 but the long tail on the day’s candlestick suggests buying at lower levels. This resulted in a recovery on May 13.

SHIB/USDT daily chart. Source: TradingView

The SHIB/USDT pair could rise to the breakdown level at $0.000017, which is likely to attract strong selling by the bears. If the price turns down from it, the bears will make another attempt to sink and sustain the pair below $0.000010.

Conversely, if bulls drive the price above $0.000017 and the 20-day EMA ($0.000018), it will suggest that markets have rejected the lower levels. The pair could then rally to the 50-day SMA ($0.000023).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.


Cointelegraph By Rakesh Upadhyay

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CryptoWendyO heard about Bitcoin (BTC) on the radio and decided to take a risk. Little did she know, the risk she would take would change her life in ways she never thought possible. The influencer shared her Bitcoin journey in this episode of Crypto Stories.

In her younger days, life wasn’t too kind to Wendy. According to the crypto influencer, she survived many challenges, including mental health issues, the death of her father when she was 11 years old, and growing up in poverty. For a long while, she thought that she would never be able to change her life.

However, things changed when Wendy realized that the world around her didn’t care about her and the only way forward was to change her life herself. Then, she met Bitcoin. She explained that:

“I kept hearing about Bitcoin on radio. So, I decided to go ahead and take a plunge and invest, be a little bit risky. And that was kind of a really cool thing to do because I never thought in a million years that I was smart enough to teach myself to do anything.”

She also shared that her experience working in healthcare contributed to her success in crypto trading. According to Wendy, her healthcare job forced her to learn to calculate doses and communicate with many different people. She was able to apply these skills to crypto trading.

Wendy believes that these experiences helped her become a “decent trader” and online content creator. With these, she was able to create a community of like-minded individuals who were interested in going through the same life-changing journey that she went through

Related: Crypto Stories: Ethan Lou shares experience of crypto conference in North Korea

She continued to encourage people to take more risks and believe in themselves. “One of the things that I realized is people who are wealthy, or people who are successful entrepreneurs, they take chances,” she said


Cointelegraph By Ezra Reguerra

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Bitcoin (BTC) failed to clinch $31,000 by the Wall Street open on May 13 as new warnings forecast a continuation of the downside.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewDollar declines, stocks bounce at week’s end

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after reaching just short of $31,000 earlier on the day.

United States stock markets saw some relief, the S&P 500 up 2.2% and the Nasdaq gaining 3.3% on the open.

The conspicuous exception was Twitter stock, which at the time of writing traded down 7.7% on the day, thanks to Elon Musk delaying his takeover bid.

U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView

In parallel to the renewed equities strength came a declining U.S. dollar, with the U.S. dollar index (DXY) coming off fresh twenty-year highs to decline 0.2% — traditionally a boon for Bitcoin and risk assets more broadly.

As optimism around Bitcoin slowly returned in the midst of the Terra LUNA blowout, some sources still argued that it was far from guaranteed that a deeper BTC price crash would be avoided.

Among them was on-chain analytics platform Material Indicators.

“This BTC rally could continue, but before you FOMO in, ask yourself what has changed fundamentally?” part of its latest Twitter update stated.

“IMO, the macro bottom is not in yet.”

An accompanying order book chart from major exchange Binance showed moderate support in place below the spot price, this nonetheless being little in comparison to the main wall at this week’s $24,000 lows.

BTC/USD order book data (Binance). Source: Material Indicators/ Twitter

Equally wary was popular trading account HornHairs, which demanded a reclaim of up to $50,000 on the weekly chart to avoid a capitulation event.

“Until then, there is a real chance we could chop around & dead cat bounce here for a few weeks into another flush down to $20k for accumulation bottom,” a recent tweet read.

As Cointelegraph reported, a further theory suggested that to preserve its tradition of 80% drawdowns from all-time highs, BTC/USD would need to dive to just $14,000.

Hayes: I would buy Bitcoin at $20,000, Ethereum at $1,300

As the dust settled on markets this week, another voice reiterated his existing concerns over a fresh meltdown to come.

Related: Canadian Bitcoin ETF adds 6.9K BTC in one day as GBTC discount hits record low

In his latest blog post concerned primarily with the LUNA phenomenon, Arthur Hayes, former CEO of crypto derivatives platform BitMEX, called for $20,000.

“The crypto capital markets must be allowed time to heal after the bloodletting concludes. Therefore, it is asinine to attempt to fathom legitimate price targets. But I shall say this — given my macro view about the inevitability of more money being printed, I will close my eyes and trust the Lord,” he wrote.

“Therefore, I am a buyer at Bitcoin $20,000 and Ether $1,300. These levels roughly correspond to the all-time highs of each asset during the 2017/18 bull market.”

Hayes had previously called for $30,000 to hit in June, before this week’s shake-up unfolded. Longer-term, however, he had likewise told readers to prepare for an extended period of pain across crypto-assets and stocks alike.

By 2030, he said, Bitcoin should cost “in the millions” of dollars.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.




Cointelegraph By William Suberg

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The ECB released another working paper on the digital euro, providing an extensive technical analysis of a potential European CBDC and its position in the existing financial system.

Issued on May 13, the working paper aims to study issues like financial intermediation, payment choices and privacy in the digital economy, providing a large number of related algebra-based conclusions.

The study suggests that a “CBDC with anonymity” is preferable to traditional digital payments like bank deposits but it “may become supplanted” by digital currencies, or “payment tokens” issued by technology giants.

“This risk would be particularly tangible if those platforms compete with banks in the market for financial services. However, an optionality for data sharing features may result in a widespread CBDC adoption,” the working paper reads.

According to the ECB, one of the main problems of cash is that it cannot be used for more efficient online transitions while it still preserves anonymity. In contrast, bank deposits can be used online but do not provide enough anonymity.

Finally, digital currencies issued by tech platforms “allow merchants to hide from banks but enable platforms to stifle competition,” the ECB wrote, adding:

The European Central Bank (ECB) continues pushing its central bank digital currency (CBDC) project despite Europeans apparently not feeling too much positive about a digital euro.

“An independent digital payment instrument — a CBDC — that allows agents to share their payment data with selected parties can overcome all frictions […] The introduction of a CBDC with anonymity enables merchants to prevent banks from extracting information from payment flows.”

While the ECB keeps promoting a potential digital euro with anonymity-enabled features, the Europeans are not quite optimistic about any CBDC. According to public feedback from another digital euro consultation, the majority of Europeans are against the adoption of a CBDC in the European Union.

Launched on April 5, the consultation has amassed 14,110 feedback entries at the time of writing, with many opposing the very idea of a central bank-controlled digital currency and associated lack of user privacy. Some online commentators even referred to a CBDC as a “slavecoin,” opposing “digital slavery” potentially introduced by such financial instruments.

“The digital euro in the sense of the EU referral is not compatible with either the protection of privacy or with data protection regulations. […] A control system for the small guarantors requires,” Austrian citizen Schmidl Andreas wrote.

“I’m totally against the introduction of a digital euro because I don’t want to be dependent on the internet when I buy something. I strictly reject the digital euro, because it leads to total control and restricts our fundamental rights and freedoms,” another anonymous user wrote.

As previously reported by Cointelegraph, the question of user privacy has emerged as one of the biggest problems associated with central bank digital currencies. This quickly became a big problem for global regulators and governments as they need to prevent illicit financial activity while also preserving confidentiality.

According to a previous digital euro public consultation released in April 2021, user privacy was considered the most important feature of a digital euro by both citizens and professionals in the European Union.

Related: Proposed digital euro designs lack privacy options, ECB presentation shows

There are a number of other problems associated with a digital euro, including the alleged lack of demand. Jonas Gross, chairman of the Digital Euro Association, told Cointelegraph in April the primary aim of the digital euro is still not clear. Last year, regulatory executive Pablo Urbiola at Spanish bank BBVA argued that it was not exactly clear what kind of customer demand the digital euro was supposed to meet.

According to European Commission finance chief Mairead McGuinness, the ECB still expects a prototype CBDC sometime in late-2023.




Cointelegraph By Helen Partz

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