From yesterday’s high at around $202.5B in the evaluation, the cryptocurrency market cap has depreciated by more than 10 billion as its currently sitting at $192,323,364,301
As you can see this is the result of a failure to break the resistance level around $204B so the evaluation fell back to where it was five days ago.
Bitcoin market dominance has been steadily increasing in this bear market which indicates the lack of confidence in the space as a whole compared to late December last year when the market participants were more prone to risk.
I would expect this trend to last all throughout the end of the bear market ending at around 70% BTC dominance. Those who are willing to sell have to first sell their alts for BTC and then BTC for cash, so BTC market share can serve as an indicator for the market sentiment the bigger the percentage the fewer risk people are willing to take and are prepared to liquidate their position in crypto and vice versa.
There aren’t any significant news that is impacting the market at the moment and are responsible for this downfall. If anything many of the headlines from a few days ago are positive. Today, however, the majority of headlines are analytical in nature as prices are falling again.
The only significant headline is the one that correlates with the increase of Bitcoin’s dominance and is considering the increase of BTC hashrate, especially compared to ETH.
Sam Doctor, a quantitative strategist at market research firm Fundstrat Advisors, said in a Twitter post on Friday that the Bitcoin network’s hashrate had almost doubled since May, from 28 EH/s [quintillion hashes per second] to 57 EH/s.
Doctor’s analysis also showed that the break-even cost of mining one BTC is now $7,300 compared to $6,000 in May. This calculation includes the depreciation costs of mining equipment and suggests the “fair price” of Bitcoin. Given this information, the cost of mining one BTC is roughly 12% higher than the coin’s current price of around $6,300.
According to data from etherscan.io, the ETH hashrate plunged 20% in the past month, from 294 TH/s to 246 TH/s. Bringing the cryptocurrency’s mining activity back to its February levels, the decline is the biggest in the past year and perhaps even since the coin’s inception in 2015.
Bitcoin Price BTC/USD
From yesterday’s high at $6530 the price of Bitcoin has decreased by 4.67% and is currently trading at $6256.4
Looking at the hourly chart you can see that the price has fallen below the 0.236 Fibonacci level which served as support and the price has stopped at the minor range support level from which the price went above 0.236 Fibonacci level about the week ago. Now as the price action is creating a cluster after the range has been broken I am expecting it to go down further below the $6000 creating a new low.
Bitcoin is in the sell zone, as indicated by the hourly chart technical indicators.
S3 5504.6 S2 5960.6 S1 6236.7 P 6416.6 R1 6692.7 R2 6872.6 R3 7328.6
Ethereum Price ETH/USD
From yesterday’s high at $227.27 the price of Ethereum has declined by 13% and is currently trading at $197.61.
Looking at the 4-hour chart we can see that the price was rejected once again by the 0.236 Fibonacci level which propelled the price downward. Similarly to the Bitcoin chart the price action on the hourly chart has starting to form a cluster around the minor range support level and as I am expecting further decline a breakout off this level would propel the price further down to the next horizontal support level strong enough to hold the momentum which is at $153.
Ethereum’s hourly chart technical are indicating a sell.
S3 84.11 S2 144.87 S1 183.17 P 205.63 R1 243.93 R2 266.39 R3 327.14
Litecoin Price LTC/USD
From yesterday’s high at $57.3 the price of Litecoin has declined by 9.88% and is currently trading at $51.98.
Looking at the 4-hour you can see that the price was rejected by the upper line off of the support zone which pushed the price down looking for support inside of the zone. Now the price is retesting the minor support below which it fell and it looks like it isn’t going to hold for much longer. As the price gets rejected by the minor resistance we are likely going to see a breakout from the zone to the next horizontal support level which is considered as the lower border of the current support zone range.
Litecoin is in the sell zone.
S3 30.626 S2 42.406 S1 49.373 P 54.186 R1 61.153 R2 65.966 R3 77.746
More red days are expected for the cryptocurrency market as we have seen a failure to break the minor resistance at the global chart. Cryptocurrency charst from the three major cryptos that I have covered in this report are showing bearish sentiment as well. Knowing some potential targets for the upcoming period may be of importance but at the end who knows when this bear market would end. My early June prediction is still in play and I am awaiting the crypto market cap evaluation to hit around $177B which is the next level that needs to be retested.