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- Bitcoin market flashes 'greed'
Bitcoin market flashes 'greed'
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Will Bitcoin, altcoins rally as F&G Index flashes ‘greed?’
Key points:
Crypto markets flashed a ‘greed’ signal, despite the ongoing market choppiness.
SOL and BTC could benefit from the ‘greed,’ but ETH might lag behind.
News - According to the crypto Fear and Greer Index, most market participants are still bullish despite the ongoing sideways movement. Bitcoin has been swinging between $60K and $72K since March and has retested its range lows eight times.
Crypto Fear and Greed Index’s reading - At the time of writing, the Index’s reading was 66 and marked as ‘greed.’ The Index tracks market sentiment and low readings can be evaluated as sell pressure or fear. A higher reading, above 50, is deemed as ‘greed’ and underscores bullish market sentiment.
On Monday too, the Index flashed ‘greed’ with a reading of 57. The same signal was flashed last week, meaning market participants are bullish on the prospect of BTC and the market’s potential recovery.
Who will benefit? Solana [SOL] could be one of the ‘greedy’ market’s beneficiaries. SOL recorded an uptick in social volume and has defended the key support range of $120-$130. A sustained hike in SOL’s popularity could favor price rallies if the market flashes an ‘extreme greed’ signal.
Bullish market sentiment was also noted by BTC. The king coin recorded an uptick in long positions over the last few days. Additionally, analysts like Rekt Capital have suggested that BTC could be out of the ‘danger zone,’ adding that $56K could be the market bottom.
However, Ethereum [ETH] could miss out on the ‘greedy’ market effect. Its declining network growth could limit its potential rally.
XRP price prediction - When is the time to go long?
Key points:
XRP has been on a downtrend since mid-April, but eased into a key range-low.
Market liquidity maps revealed key clusters below $0.5 and near the mid-range of $0.57.
News - XRP bulls eyeing long positions near the range lows might need to be more patient. The altcoin has been on a bearish downtrend, and a key market liquidity cluster near the range lows has not yet been tapped.
XRP’s price action - On the higher time frame (HTF) charts, XRP has been in an extended range formation since September 2023. It oscillated between $0.45 and $0.7. But since mid-April 2024, XRP’s price action has been stuck around the lower side of the range, swinging between $0.45 (range-low) and $0.57 (mid-range).
Key HTF chart indicators like the RSI (Relative Strength Index) and OBV (On Balance Volume) have declined since mid-April. This underscores XRP’s strong price downtrend. Although the price action near the range-low could entice bulls, market liquidity also seemed to urge patience.
XRP’s market liquidity levels - The liquidation heatmap from Hyblock Capital revealed two main liquidity clusters that were closer to the price action, at the time of writing. The first cluster was at $0.45-$0.47, nearest to XRP’s press time value of $0.50. This cluster was on the lower side of the price action.
The second liquidity cluster was at $0.575, on the upper side of the price. These two clusters could act as magnetic zones for the price action. Ergo, price action could grab the liquidity at the $0.45-$0.47 cluster before eyeing the one at $0.575. So, bulls could wait for the lower liquidity grab before jumping in.
U.S blocks China-linked Bitcoin miner near a military site
Key points:
President Joe Biden ordered crypto miner, MinerOne, to uninstall specialized equipment near a military facility.
The order also directed foreign divestment of MinerOne’s property.
News - President Joe Biden ordered Bitcoin miner MinerOne to shut down operations near Warren Air Force Base in Wyoming. The President’s order cited the ‘national security risk’ that the miner posed to the U.S, given its operation within a mile of a U.S military facility.
White House move - The order instructed MinerOne to remove all its specialized cryptocurrency mining gear at the miner’s property near the U.S military facility. The White House statement also stated that MinerOne is majority-owned by Chinese investors and acquired the property without proper clearance.
Secretary of the Treasury Janet Yellen praised the move. She claimed, “it ensures that foreign investment does not undermine our national security, particularly as it relates to transactions that present risk to sensitive U.S. military installations.”
Additionally, the presidential order directed “prompt divestment of foreign ownership of the property.” This could mean that the White House also wants the property near the military site to be owned by U.S citizens and not foreigners for ‘national security’ reasons.
Coinbase back online after a major 3-hour outage
Key points:
Coinbase users were unable to access the exchange’s website following a major outage
The issue has since been resolved, despite reported challenges faced by some users.
News - Coinbase is back online after a ‘system-wide outage.’ Earlier in the day, the U.S's largest cryptocurrency exchange notified its users of a “major outage.” Users couldn’t access the exchange’s website.
Funds are safe - Coinbase, to its credit, soon notified its users about the outage through its customer support handle on X (formerly Twitter) and assured them that their “funds are safe.” After a 3-hour-long outage that began at around 4:15 AM UTC, the exchange fixed the issue and resumed operations by around 07:42 UTC on 14 May.
However, despite the fix and resumption of operations, some users continued to report significant withdrawal issues. At the time of writing, Coinbase’s status page revealed that it was “continuing to investigate the issue.’
Impact of the outage - Bitcoin didn’t react much to the outage and was trading at $61.8K, at the time of writing. However, COIN was down 1.96% in pre-market trading.
More stories from the crypto ecosystem
Interesting facts?
Unlike traditional stock markets, crypto markets operate 24/7. This allows global participation and quicker reaction times to market events and news. However, it also means prices can fluctuate significantly outside regular trading hours. The crypto market seemed to have inspired the NYSE (New York Securities Exchange) as it is mulling the adoption of a 24/7 market.
The first Bitcoin transaction involved 2 pizzas from Papa Jones, worth 10,000 BTC in 2010. Today, the same 10,000 BTC would be worth over $600 million, highlighting the massive appreciation of BTC within 15 years.
The identity of the pseudonymous Bitcoin creator, Satoshi Nakamoto, remains unknown. And yet, Nakamoto has some of the largest BTC holdings, estimated at 1.1 million BTC. That’s over $60 billion based on current market prices.
Top 3 coins of the day
Pepe (PEPE)
Key points:
PEPE hit a new all-time high and was trending on CoinMarketCap and X (formerly Twitter).
On the higher timeframe (HTF), the market structure was bullish.
What you should know - PEPE hit a new all-time high of $0.00001146, pushing it as a top trending coin on CoinMarketCap and X. Contrary to muted market performance in May, PEPE was up over 65% on a monthly basis and chalked an ascending channel (white). The HTF’s market structure was firmly bullish, and CMF (Chaikin Money Flow) and RSI (Relative Strength Index) showed that PEPE could attempt more upswing. So, a decisive daily candlestick close above the previous all-time high of $0.00001084 could push bulls towards $0.00001319. However, the bulls could be forced to play defense at the 23.6% Fib placeholder should PEPE face rejection near the previous all-time high.
dogwifhat (WIF)
Key points:
WIF was among the top losers in the last 24 hours.
Key LTF price chart indicators were neutral ahead of key macro events this week.
What you should know - Dogwifhat (WIF) was among the top losers on CoinMarketCap, shedding 10% in the past 24 hours. However, on the lower timeframe chart, the drop eased at the blue 50-EMA (Exponential Moving Average) ($3.0). Below the 50-EMA lies a key May support level ($2.8). A drop to the May support could offer a better discount for bulls targeting the overhead resistance level at $3.5 than the current 10% discount at 50-EMA. With the US CPI (Consumer Price Index) data scheduled for 15 May, WIF could experience wild volatility mid-week. However, the LTF (lower timeframe) chart indicators readings were average, pointing to WIF’s neutral market sentiment.
Worldcoin (WLD)
Key points:
WLD dropped to its $5 psychological support.
HTF price chart indicators denoted southbound momentum for WLD.
What you should know - Worldcoin (WLD) was down 15% on the weekly charts. OpenAI's recent updates didn’t even stir up its prices as it did in the previous updates. However, the drop eased into the $5 psychological level, and a bullish order block (OB) formed on 5 May. Should the market sentiment worsen, WLD could quickly drop below $5 as key price chart indicators flashed bearish signals. The RSI and CMF were downsloping, indicating a bearish trend for the coin.
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