Bitcoin is still well below the $48,000 resistance against the US Dollar. BTC remains at a risk of a sharp decline if it fails to stay above the $45,500 support zone.
Bitcoin is trading in a bearish zone below the $48,000 resistance level.
The price is trading below $47,000 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $47,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair might start a strong recovery wave if it stays above the $45,500 support zone.
Bitcoin Price Eyes Recovery
Bitcoin price attempted a fresh increase above the $47,000 level. However, BTC failed to clear the $47,500 level and started a fresh decline.
There was a clear move below the $47,200 and $47,000 levels. The price even dived below the $46,000 support zone. Finally, the bulls defended the main $45,500 support zone. A low is formed near $45,548 and the price is now consolidating losses.
Bitcoin is trading below $47,000 and the 100 hourly simple moving average. It recovered a few points above the 23.6% Fib retracement level of the recent drop from the $47,500 swing high to $45,548 low.
An initial resistance is near the $46,500 level. It is near the 50% Fib retracement level of the recent drop from the $47,500 swing high to $45,548 low. The first major resistance on the upside is near the $47,000 level. There is also a major bearish trend line forming with resistance near $47,000 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
A clear move above the $47,000 resistance zone and the trend line could start a strong recovery. The next major resistance is near the $48,000 level.
More Losses In BTC?
If bitcoin fails to recover above $46,500, it could continue to move down. An immediate support is near the $46,000 zone. The first major support is near $45,500.
A downside break below the $45,500 level could push the price further lower. In the stated case, the price may possibly decline towards the $43,000 level in the coming sessions.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is near the 50 level.
Major Support Levels – $46,000, followed by $45,500.
Major Resistance Levels – $46,500, $47,000 and $47,500.
There is a growing need for quality decentralized exchanges.
As the global crypto demand ramps up amidst increasing popularity, the need for exchanges has concurrently risen. This has led to the entry of many new crypto exchange platforms into the mix. In the search for an exchange, both projects and users have to be careful and discerning in their choices. With crypto being largely unregulated, users are usually at the mercy of whatever exchange they are on.
Besides regulatory issues, transaction fees and speed are also areas that users need to look into, with gas fees on some chains skyrocketing and transactional delays when the network is under heavy load.
Along with conventional exchanges in the space, the need for decentralized exchanges is also growing. With regulatory pressure mounting on CEXes, decentralized finance is becoming more popular than ever. Its ability to stay out of the purview of the government means that many now flock to it. The current DeFi market capitalization stands at about $114B.
Lesser known than its more popular counterparts, MDEX.COM is an automated market maker (AMM) that originated on the Huobi ECO-chain (HECO). Amid its ups and downs, the DEX has continued to grow throughout this year. However, can it stand out from the throng?
MDEX’s current existence on both the HECO-chain and Binance Smart Chain (BSC) means that it boasts some of the fastest transfer speeds in the industry. This, combined with its low carbon footprint in comparison to Ethereum-based DEXes, makes it a strong competitor. The exchange’s mining feature means that over time the cost of transactions is similar to cheaper chains and with enough input, it can be net-zero.
MDEX first came under the spotlight for pooling the highest 24-hour transaction volume in the history of DEXes. It also recorded the highest daily trading volume for both chains reaching USD 5.05 billion establishing itself as one of the strong DEX contenders in the market. The number of current addresses holding MDX tokens stands at 277,660 in total on the BSC & HECO Chain.
Its multi-chain existence also means that there is flexibility in migration among pools. Gas fees for switching are lower than they would be otherwise and execution speed is only 3 seconds.
MDEX began as an Ethereum and HECO-chain platform that uses an Ethereum Virtual Machine (EVM) address to connect with both chains. While reinforcing cross chain interoperability, MDEX introduced an on-chain non-custodial bridge between HECO-chain and Binance Smart Chain. This allows for unprecedented flexibility, meaning that there is now accessibility between the chains. Whatever tokens are needed on either network can be accessed through MDEX without the need for an intermediary. Most DEXes are native to one chain at the moment, MDEX is one of the exceptions and aims to support even more chains simultaneously.
Last year’s crypto surge has led to a large influx of new users into the industry. Unlike seasoned traders, candlestick charts and analysis tools are like a whole new language to read for newcomers and are something they need to pick up with time. MDEX’s easy-to-use, user-friendly interface will be welcome among the droves of newcomers to crypto for its accessibility.
The exchange also features a native launchpad. Initial MDEX Offering (termed IMO on MDEX) is among one of the best choices for dev teams looking to make a splash utilising an IDO launchpad. With multi-chain compatibility, projects will gain access to a far larger audience than they would otherwise.
The platform’s IMO for Coinwind attracted a total of 8,874 participating wallet addresses and raised total funds of $385,891,505, over-collecting a staggering 25,726%. Its recent IMO for Demeter attracted 6,500 addresses, with a total of $350 million raised, and 23 million MDX tokens locked.
Yet another feather in the exchange’s cap is its allowance of liquidity locking on its network. Users can lock liquidity for selected periods of time. In addition to the rewards they gain, this also makes the network stronger by increasing liquidity for all users. With the AMM capability on the chain, along with multiple locking options, the potential for returns is higher than is generally available elsewhere.
MDEX users can earn by participating in three types of programs namely LP, Single, and Innovation. The available token pairs in liquidity pools include USDT, ETH, MDX & HT. Users can earn about 318.84% APY by staking their MDX tokens. The daily reward scheme across all programs exceeds $2 million as of Q4, 2021.
Its native token, MDX, is also widely held by users. For this metric, it is second only to Pancakeswap and comes out ahead of even the popular Uniswap. The MDEX also burns MDX periodically, creating scarcity and driving the price of the token up.
Bitcoin has retaken the highs of its current range. The first cryptocurrency by market cap trades at $41,300, at the time of writing, with a 6% and 23.8% profit in the daily chart.
BTC moving sideways after retaking $40,000 in the daily chart. Source: BTCUSD Tradingview
The general sentiment in the market has flipped bullish, the fear and greed index signals greed for the first time in months. Other indicators, as many experts have pointed out, suggest a definite shift in the market. The bulls could see more green days in the coming weeks.
Data from Glassnode, provided by the CIO of Moskovski Capital Lex Moskovski, recorded an increase in the amount of Bitcoin held by “strongest holders”. According to the Illiquid Supply metric, these holders have risen to an all-time high and suggest “bullish” price action.
Source: Glassnode via Lex Moskovski
Charles Edwards, a founder at Capriole Investments, revealed an increase in long-term Bitcoin holders. According to the HOLD Waves metric, these types of investors have been growing their supply since the May 2021 crash. Edwards added:
This type of sharp rise never occurred in the early stages of prior bear markets, suggesting that there is a chance the Bitcoin bull-cycle is still intact.
Source: Glassnode via Charles Edwards
Additional data provided by Edwards indicates that exchanges platforms had their “first positive outflows” since last week when Bitcoin made a run from its yearly open at around $29,000 to its current levels. This metric suggests that the demand in the crypto market could be returning and could support further appreciation.
Days prior to the current price action, Bitcoin dropped from about $35,000 to its yearly open, as mentioned. Edwards called this price action a “failed breakout”, as sellers were exhausted at those lows and were unable to push the price further down. He added:
The ensuing squeeze to the upside was supported by a heavily short market, with over-exposure to stable-coin contracts. This resulted in a short squeeze over the last week which culminated on the candle highlighted (…)
Source: Charles Edwards – Capriole Investments
Bitcoin Fundamentals Turn Positive, Bulls Back In Control?
Edwards reviewed other indicators, such as the Hash Ribbons metric and believes it looks “promising”. The metric saw an important decline after China banned Bitcoin mining from the country. Miners had to migrate to friendlier destinations.
The Bitcoin hash rate and its Energy Value has been rising. Edwards found that both of this metric grew around 8%, indicating that the miners’ migration has ended. Another bullish factor, since these entities can stop selling BTC; the market could see selling pressure diminish. However, investors must remain cautious:
Hash rate is showing a positive and strong trend, not dissimilar to December 2018, suggesting the bottom could be in. However, Hash Rate can give various false positives during capitulation. This is why we remain cautious until the Hash Ribbon buy signal is confirmed.
In the coming days, Bitcoin could see more accumulation around its current levels with a “higher chance” of another leg up to the mid-range, $45,000. If BTC’s price retraces, the invalidation zone stands at $39,000.
The macro-economic outlook presents a potential tailwind and risk for Bitcoin. Edwards claims that the U.S. Federal Reserve and its inflationary monetary policy could continue to boost BTC if the financial institution keeps printing money.
There is a potential risk in the traditional market. If the stock market crashes, Bitcoin could follow. The cryptocurrency has displayed a high level of correlation with the S&P 500. In consequence, it could hurt its chances to reclaim previous highs in case of a dropped. Edwards concluded:
For now, fundamentals and technicals are skewed towards the upside, and our base case is we will move towards the mid- to high-$40Ks over the coming weeks. In the near-term this thesis would be validated if we breakdown below $39K. Finally, Bitcoin cycle history tells us to be wary of significant volatility and downside risk until conditions are further improved.
