The cryptocurrency market saw another bout of profit-taking as Bitcoin (BTC) price dipped to lows of $38,328 after the Federal Open Market Committee (FOMC) meeting. As of press time, the majority of Altcoins were seen posting slight losses (<10%) on a 24-hour basis, Ethereum (ETH,-5.14%), Polygon (MATIC,-7.05%), PancakeSwap (CAKE,-6.63%), NEM (XEM,-7.86%), Chainlink (LINK, -5.19%), Internet computer (ICP,-7.02%).
A string of mixed news has kept Bitcoin bull and bears at bay, keeping the price action confined below the MA 200. In bullish news, following El Salvador’s steps, Panamanian congressman Gabriel Silva plans to present a bill that could potentially spearhead the adoption of cryptocurrencies as legal tender in July.
On the other hand, recent reports have it that some South Korean Exchanges have halted trading on certain cryptos amid mounting regulatory pressure. In the wake of the market crash, MicroStrategy announced that it was all set to “buy the dip” while successfully concluding its $500-million offering of secured notes. Although Bitcoin recovered following the news to highs of $41,322 on June 15, most technical analysts remain wary of a looming ”death cross”.
The death cross forms when a faster period moving average, usually the MA 50, crosses below the longer-term moving average, generally the MA 200 which is usually bearish. When the death cross may likely happen? Cryptoanalyst, Rektcapital says this:
”Historically, BTC tends to perform a Death Cross 107-149 days after a crash. But BTC’s recovery has been so strong recently that it has pushed back a potential Death Cross by 5 weeks towards late July”.
One thing to note is that in select instances, the death cross had been able to predict a sharp correction. However, history suggests the pattern is not reliable enough to instill instant fear in traders. Bitcoin’s death cross on Mar 26, 2020, turned out to be a buy signal while BTC had already hit bottom lows on Mar. 13.
Amid the market declines, selected tokens such as Amp (AMP,+18.04%), Quant (QNT,+ 15.57%), Horizen (ZEN,+6.99%), Waves (+3.89%) were seen climbing higher.
Amp (AMP)
Amp is a digital collateral token developed by FlexaHQ and ConsenSys that provides instant, verifiable assurance for any real-world application. On June 10, the platform announced that the amp token was now available to buy and sell on Coinbase. Amp responded to the news by climbing from June 10 lows of $0.051 to reach highs of $0.121 on June 16 while making an entrant into the top 50 by market capitalization.
Quant (QNT)
Quant launched in June 2018 to connect blockchains and networks on a global scale, without reducing the efficiency and interoperability of the network. On June 12, Quant was nominated by KPMG for the tech innovator UK award. This comes on the heels of an earlier nomination in May. Quant announced on May 26, ”Quant is proud to announce that we have been shortlisted for the 2021 @Deloitte Most Disruptive Fintech Awards.” Quant has been climbing higher since June 8th, marking each day in the green. QNT was trading at $71.83 as of press time.
Horizon (ZEN)
Horizon (ZEN) is a secure interoperable blockchain ecosystem that enables businesses and developers to build fully customized blockchains and DApps. Horizon recently launched the Horizen ambassador program which allows participants to earn free ZEN. As of press time, Horizen was trading at $90.03.
Waves (WAVES)
Waves is a multi-purpose blockchain platform that supports various use cases including decentralized applications (DApps) and smart contracts. Waves had announced crossing several major milestones recently, one of which was the launch of the USDN gateway between Waves and Binance Smart Chain which allows users to receive and send USDN to the BSC network. Waves traded at $17 as of press time.
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