On May 18, Bitcoin (BTC) and the general cryptocurrency market confronted one other spherical of promoting as FUD — concern, uncertainty and doubt — impacted investor sentiment after Reuters and varied social media shops reported that China would ban monetary establishments and cost firms from offering companies associated to cryptocurrency transactions.
According to these reviews, China additionally issued a warning to a number of Chinese commerce associations concerning the risks of cryptocurrency investing.
Data from Cointelegraph Markets and TradingView exhibits that bulls tried to push the price of Bitcoin again above the $45,000 resistance stage on May 18 solely to have the price battered again beneath $43,000.
While the circumstances for Bitcoin might seem dire to some, a number of elementary developments together with, elevated BTC outflows from the highest United States crypto trade Coinbase and the revelation that MicroStrategy used this most up-to-date dip to purchase one other $10 million value of BTC, point out the potential for additional upside for the highest cryptocurrency.
The precarious nature of the present market circumstances for Bitcoin is probably summed up finest within the following tweet from cryptocurrency analyst and Twitter character Rekt Capital, which highlights the significance of the upcoming every day shut for BTC.
Every time #BTC Daily Closed inside inexperienced assist or above it – a bullish reversal would happen#Bitcoin is again at inexperienced assist once more however as a substitute is hovering beneath it now
— Rekt Capital (@rektcapital) May 18, 2021
Altcoins shake off the downturn
Despite the full-frontal FUD assault that the crypto market has been below in latest weeks, many altcoins have seen their costs breakout over the previous couple of days as merchants rotate out of underperforming tokens and into tokens which have turned bullish.
The standout efficiency of the week goes to MATIC, the native token of Polygon, a quickly rising Ethereum layer-two resolution that has morphed into an oasis for merchants on the lookout for decrease charges.
According to knowledge from Cointelegraph Markets Pro, market circumstances for MATIC have been favorable for a while, as evidenced it is the latest VORTECS™ Score of 99 on May 15, which was recorded roughly 50 hours earlier than its price rallied 83% from a low of $1.47 on May 17 to a brand new all-time excessive at $2.70 on May 18. This transfer befell as there was a document $6.84 billion in 24-hour buying and selling quantity.
Synthetix Network Token (SNX) has additionally acquired a lift in buying and selling quantity on May 18 that lifted its price 40% to an intraday excessive at $25.64, whereas the Binance Smart Chain-based DeFi platform Venus’ XVS token rallied 63% to an intraday excessive of $143.41.
Other notable double-digit gainers embrace 40% gains for ARK and Celer Network’s CELR, as properly as 20% gains for AAVE and Helium Network Token (HNT).
The total cryptocurrency market capitalization now stands at $2.076 trillion, and Bitcoin’s dominance fee is 39.4%.
The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph. Every funding and buying and selling transfer entails threat, and you need to conduct your individual analysis when making a call.