As we approach the end of the week, it seems that the overall sentiment in the crypto market is still mixed, with some cryptocurrencies registering minor gains while others are closing the week with minor drops. Let’s look at the top cryptocurrencies in more detail and see how they performed over the last week.
Bitcoin (BTC)
The first cryptocurrency we take a look at is Bitcoin, which is the largest digital asset by market capitalization. If we look at the BTC H1 chart, it seems that it is still in a downtrend and has yet to break its downwards trendline.
On Monday, BTC opened with a price of $30,277.54 and inched higher to eventually touch the price level of $31,745. If we calculate that bullish move, it was an increase of around 4.80%. Unfortunately, BTC failed to keep its bullish momentum and started going downhill from the high of $31745. It would not be wrong to say that the BTC witnessed a mini bloodbath as it fell from $31,745 (high) to a low of $29,200.
The descent of BTC from $31,745 to the low of $29,200 only took 12 hours and removed 8% of the BTC’s value. However, BTC found demand at its low of $29,200 and went all the way up to test the high of $31745 once again. But once again, the selling pressure was intense at the $31,745, which forced the BTC to resume its downtrend once again.
Right now, BTC is in a downtrend and has yet to break its bearish trendline (black color). It seems that BTC is in the process of making a double top which is a very strong bearish signal if it breaks its neckline!
On the H4 timeframe, the BTC trend is still bearish. It is trading within a bearish channel. If this bearish trend continues, it seems that BTC will only find some buyers around the $29,000 and the $28,750 level.
Ethereum (ETH)
Things aren’t looking good for the ETH as well since it is also in a downtrend ever since making a high of $1918. Just like BTC, Ethereum also opened the week on a positive note as it inched higher to eventually touch the price level of $1918.
From the ETH’s opening price ($1804) on Monday to its high of $1918, it gained a total of 6.42%, but all of these gains were quickly given up following the selling pressure. So it seems that ETH has been in a downtrend ever since its high of $1918 and is respecting its downwards trendline.
Unless ETH breaks its current bearish trendline, there is no chance for the bulls yet. That’s why it is best to play the waiting game until ETH finally finds some buyers and breaks that downward trendline.
On the H4 chart of ETH, we get some hints on the price levels at which Ethereum can finally find some support:
If the support levels around $1700 holds, there is a good chance that it will end up challenging its bearish trendline.
BNB
Binance Coin (BNB) also came under selling pressure after it managed to hit a high of $312 for the week. The selling pressure in BNB was so intense that it ended up testing the low of $273. But unlike BTC and ETH, it seems that the BNB has managed to find some positive momentum as it is trading above its weekly low.
But if you look closely, the BNB H1 chart tells us clearly that it is in a range-bound motion and a strong resistance is present around the $294 – $296 region. Unless BNB manages to make a strong close above the resistance zone ($294-$296), we can’t say that it has resumed its bullish move.
Cardano (ADA)
Cardano (ADA) is also experiencing a downtrend, just like the other cryptocurrencies such as BTC, ETH, BNB, and others. The SMA (20) and the SMA (50) on the hourly chart tell us that a bearish crossover occurred on Friday. Right now, ADA is trading below both of its SMA lines (20 and 50).
The difference between the two lines (20 SMA and the 50 SMA) gives us an indication that the downtrend is really strong!
If we look at the bigger picture, the resistance around 0.67 seems to be holding up ever since the 31st of May 2022. Although Cardano is marginally up from its Monday opening of $0.567, the overall trend is bearish in Cardano, which is in line with the overall bearish trend in the cryptocurrency market.
Conclusion
It is clear by now that a majority of cryptocurrencies follow the direction/trend of Bitcoin. When Bitcoin is trending down, you aren’t finding many cryptocurrencies which are trading bullishly. For now, it is clear that the trend is down in most of the digital assets and will continue to do so unless they break their respective resistances or find buyers at the next support levels.
On the news front, the US Senators have unveiled a bill to regulate cryptocurrencies. The SEC is also probing into the Binance Exchange over its BNB Token, which is not a good thing for both the exchange and its token. As for the world’s 2nd cryptocurrency ( Ethereum), it is all set to undergo a major upgrade this week – Any type of upgrade in the technology or the infrastructure of a cryptocurrency is generally good news.
A piece of rather bad news for the crypto industry is that there are plans to ban the Crypto Pay in Russia once again. However, there is still no way to ban the trading of cryptocurrencies by anyone, which is what makes cryptocurrencies so intriguing.
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