Crypto traders are still looking ahead to Wednesday’s release of June’s Consumer Price Index, the measure of US inflation, for clues on how aggressive the Federal Reserve will need to be to slow the pace of consumer price rises.
Barring Shiba and Unus Sed Leo, all other crypto tokens were trading marginally lower on Tuesday. However, the losses were capped in all tokens.
The global cryptocurrency market cap was trading lower at the $888.98 billion mark, dropping more than 3 per cent in the last 24 hours. However, the total cryptocurrency trading volume dropped over a per cent to $53.63 billion.
Expert take
Bitcoin dropped below the $20,000 level as prices continued to slip for another day, said Edul Patel Co-Founder CEO of Mudrex. “We might see BTC falling to $18,000 as bearish sentiment persists in the market.”
The crypto market along with the traditional financial markets has been under tremendous selling pressure due to the rising inflation and growing geopolitical uncertainty, said Shivam Thakral, CEO, BuyUcoin.
“The metaverse tokens also faced some heat from a broader sell-off in the crypto market with popular metaverse tokens such as Decentraland, The Sandbox, Axie Infinity, and Enjin Coin falling sharply,” he added.
Global updates
- The Financial Stability Board (FSB) said it would propose ‘robust’ global rules for cryptocurrencies in October, following recent turmoil in markets that has highlighted the need to regulate the ‘speculative’ sector.
- It’s time to start stacking bitcoin again. That’s the message from indicators tracking tokens sold by miners and comparing the cryptocurrency’s market value to its fair value.
- Voyager, the crypto exchange platform that declared Chapter 11 bankruptcy last week, assured customers that its ‘FDIC insured’ USD deposits would be returned in full, pending a ‘reconciliation and fraud prevention process.’
- Crypto trading platform CoinFlex has begun arbitration for the recovery of over $84 million in debt owed by a “large individual customer” as part of a broader revival strategy.
- Binance, the largest cryptocurrency exchange by traded volume, made only weak attempts to prevent money laundering, Reuters said. Binance operated outside the rules that many rival firms follow.
- Clean energy-focused bitcoin (BTC) miner Gryphon Digital touted its operational efficiency and balance sheet flexibility in its June update.
- Celsius Network, the troubled crypto lender that has halted customer withdrawals because of liquidity troubles, paid down $95 million of its debt to the Aave and Compound decentralized finance (DeFi) platforms.
Tech View by Giottus Crypto Platform
BNB is the native coin of Binance, one of the leading crypto exchanges. Binance started as a crypto exchange in 2017 and now aims to position itself as an infrastructure provider for the blockchain ecosystem. BNB has held up considerably well in 2022 compared to other crypto assets.
It has shed ~67% from its 2021 all-time-high of $675 amidst the market turmoil. BNB is currently trading at $224, down by 3% in the last 24 hours. BNB started the year above $500. It unsuccessfully attempted to push past a long-term trendline resistance multiple times but finally broke above it in July.
It has also broken a falling wedge pattern indicating a bullish reversal. Its .382 fib retracement level of $228 is acting as its immediate resistance. BNB needs to pull through the psychological resistance at $250 to restore confidence in the market. A pull through will bring the 50-day SMA of $255 into play.
However, indicators present a neutral picture for BNB, with its RSI standing at 42 currently. The .236 fib level of $211 will act as the next crucial support.
Major Levels
Resistance: $228, $250, $255
Support: $211, $183
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
