June 12th Market Analysis from LBank Derivatives
The cryptocurrency market underwent a widespread downturn this weekend following rumors that Binance, one of the leading cryptocurrency exchanges, was withdrawing its market makers.
Altcoins were hit hard, with average losses exceeding 20%. Some major coins also experienced a significant downturn, with drops exceeding 10%.
Bitcoin showed relative resilience amidst a market-wide downturn. The price dipped a slight 3%, settling at around $25,800. Notably, this is the first instance of Bitcoin breaking below the MA120 trend line, suggesting a potential for continued decline.
Given the current negative market sentiment, it is advisable for investors to observe the market trend before making any substantial moves.
Ethereum also held up relatively well, suffering a moderate 5% decrease to about $1730. This downturn also represents Ethereum’s first break below the MA120 moving average line, which places it at a crucial position. Similar to Bitcoin, the recommendation here is for investors to observe and wait as market conditions don’t favor immediate buying.
Notable Altcoins
Binance Coin was notably affected by short-sellers in response to rumors of Binance withdrawing its market makers. The price has dropped to around $226, a value close to its previous low of $220.
This presents a crucial point for BNB as it has halted its short-term decline, but the current pattern indicates a high likelihood for continued decline and volatility.
The advice for investors would be to avoid entering long positions at the current level and consider short opportunities after a break below $200.
In contrast to the majority of the market, Ripple (XRP) has shown considerable resistance to the market downturn. XRP’s price remains above $0.5, appearing minimally impacted by the market’s bearish conditions.
The current pattern indicates bullish potential, making XRP one of the stronger standalone coins in the market with a likelihood for continued fluctuation with an upward trend.
In conclusion, the present market conditions call for caution and observation. The overall negative sentiment suggests that investors should keenly watch market trends and news and weigh these considerations carefully before making any decisions.
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Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.
