🔑 Register an account with Gate.io
👨💼 Complete KYC within 24 hours
🎁 Claim Points Rewards
All Devices
Exit all terminal accounts APP/PC/WAP
This Device
Exit the current web account
Gate Blog
Your Gateway to crypto news and insights
Market Trend 20/6 - 26/6 ｜BTC and ETH show signs of resistance, Altcoins skyrocket
27 June 10:41
The bear markets continue at full strength across all financial verticals, with Nasdaq, Dow Jones and S&P 500 maintaining great instability due to recent announcements from the Federal Reserve and US Treasury Department. The same applies to crypto, where last week we saw digital assets plummet significantly in all sectors - with DeFi taking the biggest damage of all.
This past week, however, crypto is showing some instigating signs of resistance against recent outflows from the market. This brief recovery also draws a parallel to the biggest losses of the previous update. While Bitcoin and Ethereum managed to bounce back a bit from past lows, the real highlight goes to altcoins - in severe trouble two weeks ago, all top #100 projects made an amazing recovery with no weekly losses, which might indicate overselling on retails’ end.
It shouldn’t be all a sign of a shift in market sentiment, however, as inflation, Celsius and the recent Three Arrows Capital debacle will continue to pressure institutional investors against digital assets. Regarding the recent recovery, it may also be an infamous “dead cat bounce” which will eventually plunge the market even lower, so precaution is key here.
BTC and ETH show signs of resistance
Bitcoin chart of the past week. Source: CoinGecko
Ethereum chart of the past week. Source: CoinGecko
After Bitcoin and Ethereum respectively plunged from $28k and $1.6k to lows of records $18k and $900, we have witnessed a brief bounce back up to $21.5k and $1.2k - registering weekly gains of 12% for Bitcoin and 22.5% for Ethereum at the time of writing. While Bitcoin presented a modest recovery, possibly a correction from intense market fears of the past few weeks since the LUNA/UST crash, Ethereum is definitely the standout of the week as recent news has surfaced that the Merge update is closer than we may have thought.
A network upgrade that will take Ethereum from Proof of Work to a Proof of Stake blockchain, the so-called Merge has been delayed several times. Recent news from the project, fortunately, points to July as the key month for its execution, so investors are now optimistic about a surge in value over the next few weeks before and after the Merge. If it indeed occurs, that is.
Altcoins skyrocket in unprecedented weekly gains
The five biggest gains of the week in the top #100 crypto ranking. Source: CoinGecko.
Despite the very clear bear market currently faced by crypto (and all finance in general), the past week witnessed an event never before seen in digital assets - even during the last gigantic bull run. Every single cryptocurrency in the global top 100, apart from stablecoins, finished the week in the green. Although such moves don’t necessarily point to a trend reversal, it does show that investors feel the market has been overselling for the past few weeks. Assets that suffered the most losses in the recent past, such as Celsius and STEPN, were also the biggest weekly winners here.
While the upside may seem exciting for investors, having a long-term memory of the matter is important when making decisions in this current climate. The expression “when in doubt, zoom out” also applies to overly-positive moments in crypto. Sure, things look bright now, but mostly because they were extremely negative quite recently. It’s great seeing investors move back toward their investments, but refrain from too much confidence as the entire world continues to be extra careful with the markets. An American recession, after all, might just be right around the corner.
Author: Gate.io Researcher: Victor Bastos
* This article represents only the views of the researcher and does not constitute any investment suggestions.
* Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.
ETH/USDT
+ 5.54%
BTC/USDT
+ 0.20%
GT/USDT
+ 4.73%
Unbox Your Luck and Get a $6666 Prize
Register Now
Claim 20 Points now
New User Exclusive: complete 2 steps to claim Points immediately!
Claim now
