Paraguay paves the way for crypto regulation despite internal opposition
A new bill for crypto regulation has been approved by Paraguayan Congress despite the central bank and budget commission’s rejection of the project.
Ethereum Gas Fees Touch New Lows, What’s Ahead For Ethereum
Ethereum is one of the most widely-adopted cryptocurrency projects worldwide. Yet, it’s hated worldwide for its sky-high gas (transaction) fees. Users globally constantly complain about the coin’s terribly-high transaction prices on various social media platforms.
Shockingly, Santiment, an on-chain and metrics platform, published on Twitter a report showing Ethereum’s transaction prices plummeting to their lowest.
The Ethereum Platform
Ethereum is a distributed, permissionless, and open-source blockchain that provides users access to a smart contract. It is the second-largest blockchain by market capitalization, following crypto giant Bitcoin.
Related Reading | Bitcoin Dominance Remains High As Market Sell-Offs Settle
Remarkably, Ethereum offers a p2p (peer-to-peer) network that verifies and executes codes within the platform, known as Smart Contracts.
Ethereum GAS Price
On the Ethereum network, users are charged some amounts to perform any transaction, buying, selling, swapping, minting, etc. Ethereum previously had a ridiculous record for having very high gas fees for its transactions.
Recently, the crypto giant began offering meager transactional charges to its users, as recorded by Santiment. Santiment is a financial market content and data platform for blockchains and cryptocurrencies.
The metric platform took to Twitter the news of Ethereum’s meager transaction prices. As of Tuesday, 24th May, the second-largest blockchain had a transaction price of $ 2.54 a transaction.
What’s Next For Ethereum (Source: Santiment)
According to Santiment, this is the lowest the transaction fees have been since last July. Therefore, it may be unique for ETH prices. Historically, ETH coin prices usually leap once the average transactions drop below $ 5. Ethereum’s average gas fees have plummeted, breaking its 10-months low.
Nevertheless, traders still need to be careful while trading and transacting with the crypto because the market is presently disadvantaged. Thus, a considerable leap might not occur given the current global bearish market.
Various crypto pundits and financial analysts project that Bitcoin is about to dip massively, predicting a further dip. Mike Novogratz was among the “prophets of doom” for the world’s leading blockchain and crypto.
ETH price on the brink of falling below $ 1,700 | Source: ETHUSD on TradingView.com
Novogratz, a financial investor, took to Twitter, stating that further dips await Ethereum and Bitcoin and the entire DeFi market. In his tweet, he emphasized that 2022 will not be so favorable for investors and traders.
Related Reading | Perp Traders Remain Quiet As Bitcoin Struggles To Hold $ 30,000
Noting that Bitcoin controls the value of the entire DeFi marketplace, if Bitcoin dips, being the most significant blockchain, the whole market dips. This includes the Ethereum blockchain.
Featured image from Pexels, chart from TradingView.com
NewsBTC
Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?
This week, Bitcoin had made history when it recorded its eighth consecutive red weekly close. This first-of-its-kind streak had cemented the digital asset on one of the worst bearish trends that have ever been recorded. Now, even as the week runs towards another close, the cryptocurrency has not been able to make any considerable recovery, indicating that it may not be done with its bearish streak.
Bitcoin Headed For A Ninth Red Close?
With bitcoin still trading well below $ 30,000, it is no long shot to speculate that the digital asset may close out this week in the red too. If it does so, then it will break its previous record while plunging the market into even worse bearish trends. Nine consecutive weekly closes would prove that bulls have mainly relinquished control of the market, meaning the bears have the leeway to pull the market down further.
Related Reading | Bitcoin Dominance Remains High As Market Sell-Offs Settle
This combined with the increased interest rates from the Fed has left investors feeling warier about financial investments. Thus driving them towards more ‘stable’ investment options. With such money leaving the market, bitcoin possesses little chance of actually reversing the current trend.
Even though bitcoin has been providing a safe haven from the altcoin bloodbath, it does not mean that the digital asset itself has not taken losses. NewsBTC reported that while bitcoin has been the best performer of all the indices, the cryptocurrency is still down 24% from the start of the month. This decline in price means that investors are still not as bullish on the pioneer cryptocurrency.
BTC price falls to $ 28,000 | Source: BTCUSD on TradingView.com What The Indicators Say
For bitcoin, maintaining above the 50-day moving average has always been a bullish indicator. This is why the current trading value of the cryptocurrency does not spell good news for it. For example, bitcoin is more than $ 9,000 below its 50-day moving average. To cement a recovery trend, it would not only have to move above this point but will need to establish significant support above the $ 40,000 level. This would mean that bitcoin would have to recover 37% to achieve this.
Related Reading | Perp Traders Remain Quiet As Bitcoin Struggles To Hold $ 30,000
While this is not outside the realm of possibility, exchange inflows show that it is very unlikely to happen. Over the last 24 hours alone, BTC exchange inflows have surpassed outflows by $ 7.5 million, showing that the sell-off trend continues to wax stronger.
Unless this sell-off trend can be halted and turned into an accumulation trend, a 37% recovery remains out of the picture for bitcoin. Coupled with the extreme fear sentiment that is being experienced in the space, BTC is more likely to touch below $ 25,000 before establishing support above $ 40,000.
Featured image from BBC, chart from TradingView.com
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Falling wedge pattern points to eventual Ethereum price reversal, but traders expect more pain first
ETH dropped below a key support in its USD/BTC pair, but analysts say a bullish trading pattern could eventually spark a sharp trend reversal.
Bankman-Fried faces down roomful of futures industry insiders at CFTC roundtable
The discussion of FTX.US’s proposal for non-intermediated margined products clearing highlighted unknown factors and need for more regulatory framework.
ECB: One in ten households in eurozone population centers now own cryptocurrency
The survey took place in the EU’s major economic areas such as France, Germany, Italy, Spain, Belgium, and the Netherlands.
Bitcoin Taker Buy/Sell Ratio Approaches Bullish Cross
On-chain data shows the Bitcoin taker buy/sell ratio is now approaching a crossover with the “1” level, a sign that could be bullish for the crypto’s price.
Bitcoin Taker Buy/Sell Ratio Observes Rise, Almost Reaches A Value Of 1
As explained by an analyst in a CryptoQuant post, signs may suggest that a local top could soon be coming for the crypto.
The “taker buy/sell ratio” is an indicator that measures the ratio between the Bitcoin long volume and the short volume.
When the value of the metric is greater than one, it means the taker buy volume is higher than the sell volume right now. This trend indicates that a bullish sentiment is dominant in the market at the moment.
Related Reading | Bitcoin NUPL Touches Lows Not Seen Since COVID Crash, Rebound Soon?
On the other hand, the ratio being below one implies the majority sentiment is bearish currently as taker sell volume is more than the long volume.
Now, here is a chart that shows the trend in the Bitcoin taker buy/sell ratio over the last few months:
The value of the indicator seems to have observed a surge recently | Source: CryptoQuant
As you can see in the above graph, the Bitcoin taker buy/sell ratio has been rising over the past month and is now approaching a crossover with the “1” level.
In the past, an increase in the indicator’s value above this line has usually been a bullish signal for the crypto’s price.
Related Reading | Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $ 30,000
The quant also points out that the volume has been going up and is about to cross above a positive value. The below chart shows this trend.
Looks like the BTC volume has been going up in recent weeks | Source: CryptoQuant
The analyst believes that these two trends together (if they continue on and the respective crosses take place) may indicate that the price of Bitcoin could see an increase soon and form a local top.
BTC Price
At the time of writing, Bitcoin’s price floats around $ 30.3k, up 2% in the last seven days. Over the past month, the crypto has lost 24% in value.
The below chart shows the trend in the price of the coin over the last five days.
The price of the crypto looks to have observed a rise over the last couple of days | Source: BTCUSD on TradingView
Bitcoin seems to have gained some footing above the $ 30k level in the past two days, but the coin has still been stuck in an overall trend of consolidation for a couple of weeks now.
At the moment, it’s unclear when the coin may escape this rangebound market and show some real price movement.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
NewsBTC
Top 5 cryptocurrencies to watch this week: BTC, BNB, XMR, ETC, MANA
BTC price continues to encounter selling pressure, but a brief rally or the start of consolidation could lead to sharp gains in BNB, XMR, ETC and MANA.
Terra collapsed because it used hubris for collateral — Knifefight
