Bitcoin’s dominance has dropped to nearly 40% and this drop is the result of the May 19 flash crash. Such crashes have changed market dynamics and influenced trader sentiment in the past, and they continue to do so. This is evident when we compare the crash to the crashes in 2017 before the price hit a peak.
The current drop was the second largest in terms of drop in market capitalization and the % drop in price. The last ATH of $64863 was hit 2 months ago, and since then the sentiment of traders towards Bitcoin has changed. From accumulating to HODLing/ selling, retail traders and institutions have both slowed down in acquiring more Bitcoin and increased their investment inflow in altcoins and top DeFi projects. This may be entirely unrelated but the crash pivots the two actions and supports the narrative of a shift in the future of the bull run.
Back in 2017, there were four major corrections in Bitcoin’s price, and the final one led to a drop of 30%, before the price hit an ATH of $19764. The current crash marks the second drop, and this could mean that a few more crashes are likely before hitting a new ATH in the following months of 2021.
By definition, a flash crash lasts for less than a month and the price drops subsequently 30-40%. As Bitcoin traded 43% away from its ATH, it is clear that an increase in the inflow of investment and large transactions on the network is likely to revive the market capitalization and dominance. 12% of Bitcoin is concentrated in large investors’ wallets, and of them, less than 75% are profitable at the current price level.
This increases the selling pressure on Bitcoin, however, 58% of large investors have held it for over a year, and they are likely to continue, thus resisting the selling pressure and supporting the bullish narrative.
The current on-chain sentiment is bearish, however, that is also likely to change following an increase in HODLer concentration and inflow of investment from institutions. The GBTC premium makes it lucrative for institutions to invest in GBTC and subsequently Bitcoin, this is likely to have a bullish impact on the price in the long run.
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Ethernity Chain (ERN) Goes Live On Binance’s Innovation Zone
[PRESS RELEASE – George Town, Cayman Islands, 22nd June 2021]
Ethernity Chain (ERN) is coming to Binance’s Innovation Zone and will receive three trading pairs later today. The popular community-oriented platform with a strong focus on authenticated and limited edition NFTs has received a lot of attention lately. This token listing further enhances the appeal of what Eternity Chain brings to the table.
As a platform renowned for its limited-edition authenticated Non-Fungible Tokens, Ethernity Chain has built up a strong reputation in the past few months. Numerous famous individuals, celebrities, and sports athletes have partnered with the team to create new collectibles on the platform. Recently, Ethernity Chain teamed up with Manny Pacquiao, footballer Pelé, Phil Ivey, Anderson Silva, Marilyn Monroe, and the Winklevoss brothers further illustrating the appeal NFTs have at this time.
The native ERN token has multiple purposes within the Ethernity Chain ecosystem. For example, it can be used to buy NFTs, stake the token for rewards, governance rights through voting on proposals, and is subject to period buybacks by the team through platform profits. Getting this token listed on a major trading platform like Binance can introduce thousands of people to ERN and the broader Ethernity Chain ecosystem.
“When the biggest exchange in the world decides to incorporate your company into theirs, it’s definitely not something to take lightly. This is a massive statement that reverberates to all our artists, charities, icons and of course, the community” – Nick Rose, CEO Ethernity Chain
Binance has confirmed ERN will become part of its Innovation Zone. The Innovation Zone serves as a dedicated trading zone where innovative assets with potentially higher volatility are introduced to Binance’s traders. With this higher trading risk comes a potentially higher reward.
Interested users must go through the Innovation Zone’s web page and complete a questionnaire to access ERN and other listed tokens. There are no trading restrictions on these trading pairs. For Ethernity Chain, the trading pairs will be ERN/BNB, ERN/BUSD, and ERN/USDT. Trading will commence today at 06:00 AM UTC.
About Ethernity Chain
Ethernity is the groundbreaking authenticated NFT project which auctions verified artwork featuring the top artists and stars from sports, music, film, gaming, tech, history and entertainment. Each of these digital artworks is represented as a non-fungible token (NFT). The pieces feature well-known public figures, and a portion of all funds raised from the endeavor will be donated to charitable causes. Ethernity Chain combines the utility of DeFi and merges it with NFTs to create an exclusive pipeline to rare, collectible content from notable figures and well-established digital artists.
Cardano Price Analysis: ADA Bears Take Control, Will $1 Hold?
ADA/USD – ADA Plummets Beneath The 100-day MA
Key Support Levels: $1.07, $1.00, $0.913.
Key Resistance Levels: $1.20, $1.30, $1.42.
ADA fell beneath the 100-day MA at $1.42 over the weekend and has since plummetted as low as $1 today.
The cryptocurrency was trading inside a symmetrical triangle pattern and broke toward the downside of the consolidation on Saturday. Yesterday, ADA slipped from the 100-day MA and fell beneath $1.20.
It continued today as ADA broke support at $1.12 (long-term .618 Fib) and dropped into $1 (short-term .886 Fib).
ADA-USD Short Term Price Prediction
Looking ahead, if the bears break $1.07, the first major support lies at $1.00 (200-day MA). This is followed by support at $0.913 (May lows), $0.847 (downside 1.272 Fib Extension), $0.8, and $0.75 (.786 Fib).
On the other side, the first resistance lies at $1.20. This is followed by $1.30 (bearish .236 Fib & falling trend line), $1.42 (100-day MA), and $1.50 (bearish .382 Fib).
The daily RSI reached extremely oversold conditions today, indicating that the sellers must be reaching exhaustion soon. The RSI is now the most oversold since September 2020.
ADA/BTC – ADA Loses 50-day MA and Drops To .5 Fib Support
Key Support Levels: 3440 SAT, 3200 SAT, 3070 SAT.
Key Resistance Levels: 3600 SAT, 3800 SAT, 4000 SAT.
ADA also lost crucial support at 3820 SAT (.382 Fib) this week. It had established this support in June and managed to close each daily candle above it through the month. ADA bounced higher from it over the weekend and climbed above the 50-day MA.
Unfortunately, it was unable to close above the 50-day MA at 4000 SAT and dropped lower from there yesterday as it fell beneath 3820 SAT (.382 Fib). Today, it continued until added support was found at 3440 SAT (.5 Fib).
ADA-BTC Short Term Price Prediction
Moving forward, the first support lies at 3440 SAT (.5 Fib). This is followed by 3200 SAT, 3070 SAT (.618 Fib & 100-day MA), and 3000 SAT.
On the other side, the first resistance lies at 3600 SAT. This is followed by 3800 SAT, 4000 SAT (50-day MA), and 4190 SAT (20-day MA).
The RSI is in bearish territory and is still not oversold. This indicates that there might be some more selling pressure on the way.
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Cryptocurrency charts by TradingView.
War on Illegal Bitcoin Mining: Iran Confiscates 7,000 BTC Mining Machines
Iranian authorities have confiscated about 7,000 cryptocurrency mining machines. The latest development is in line with Iran’s crackdown on illegal bitcoin mining activities.
- According to Reuters on Tuesday (June 22, 2021), General Hossein Rahimi, Tehran police chief, revealed that the computer miners were found at an abandoned factory in Iran’s capital, which was used to carry out illegal cryptocurrency mining activities.
- The latest seizure is the largest ever carried out by Iranian authorities. Back in January, the Iranian government confiscated over 1,500 unlicensed crypto mining farms. In the same month, authorities seized 45,000 bitcoin mining rigs.
- Iran’s cheap electricity has seen an influx of bitcoin miners to the country. A study by Elliptic, a blockchain and crypto analytic firm, showed that Iran accounts for over 4% of bitcoin mining.
- However, the government seems to have come down hard on the bitcoin mining sector, with various operations targeted at illegal BTC miners. According to Iran, bitcoin mining activities allegedly affected the country’s electricity supply.
- As reported by CryptoPotato in May, the Iranian government placed a temporary ban on BTC mining untill September 2021. The country earlier stated that it would fine miners using household electricity for bitcoin mining.
- While Iran is clamping down on illegal bitcoin mining activities, China is carrying out a nationwide crackdown on the sector. Regions like Xinjiang, Mongolia, Qinghai, and Yunnan have issued notices for miners to shut down operations.
- The clampdown on Chinese bitcoin miners has consequently led to a sharp drop in hashrate by nearly 50%.
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