Crypto market panic remains, BTC may have started bottoming out

The crypto market bulls are showing signs of recovery.

Crypto market regulation remains under heavy pressure and market panic remains relatively severe. However, Biden’s request to increase government spending to $6 trillion in fiscal year 2022 and the uncertainty brought to the global economy by the spread of mutated virus strains in India may bring big variables to the crypto market.

From the data side, the market panic has been repaired, the panic greed index has risen, the Baidu search index has increased, the BTC funding rate has turned positive, the buying power in the field has also increased, there is a certain inflow of funds, and signs of long recovery have appeared.

The technical chart shows that BTC is playing a fierce long/short game today, and the bulls are currently performing strongly, with the upper attack blocked by MA5 and MA240.

Summary

  1. Crypto market regulation still remains heavy, and market panic is also still more serious.

According to the Firecoin Global Station quotes, BTC is playing a fierce game of long and short today, and the current strong performance of the long side is blocked by MA5 and MA240.

  1. From the accumulative data of miners’ production and selling, we can see that miners’ production stabilized and rose slightly, and the selling volume decreased. 219 BTC were accumulated by miners net in 24 hours, which indicates that miners’ selling sentiment is weakened and tend to hoard coins, which is beneficial to BTC’s upward market.
  2. The number of BTC holdings fell again, and the amount of BTC locked positions in DeFi also decreased accordingly, which indicates that the selling pressure above BTC is serious, and the short-selling force is still strong, and BTC tends to oscillate in a wide range in the market afterwards.
  3. market sentiment has risen, off-site attention has grown, the field buying power has also grown, the long side of the force has recovered.
  4. The contract market is slightly dominated by long positions, and the ratio of BTC long to short positions is retracing higher in the short term, and BTC is expected to maintain the oscillating market in the aftermath.
  5. The mainstream crypto index in today’s crypto market is generally slightly down, and the mainstream index of large-capitalization is slightly down, and the funds are in a strong wait-and-see mood.

I. Macro market and coin circle news
Xinhua posted an article saying that virtual currencies lack value support and are susceptible to sharp rises and falls due to liquidity. In addition, BitMart announced that due to policy adjustments in mainland China, it is now part of the BitMart service restricted area and will suspend contract trading services for all Chinese users. From an overall perspective, crypto market regulation still maintains heavy pressure and market panic remains relatively serious. It is worth noting that in the early morning of May 29th Beijing time, the US White House released the first budget proposal of Biden’s presidency, in which Biden requested to increase government spending to $6 trillion (about RMB 38 trillion) in fiscal year 2022. In addition, the outbreak in India is out of control and is affecting China and Southeast Asian countries such as Vietnam, which may bring changes to the crypto market.

II. Technical Analysis
According to the quotation of Firecoin Global Station, BTC is playing a fierce game between long and short today, and the current strong performance of the long side is blocked by MA5 and MA240.

Third, miners accumulation indicators
According to bytetree data, from the miner production and selling accumulation data, we can see that the miner production volume stabilized and rose slightly, and the selling volume declined, miners accumulated 219 BTC net in 24 hours, which indicates that miners’ selling sentiment is weakened and tend to hoard coins, which is conducive to BTC’s upward market.

Crypto market panic remains, BTC may have started bottoming out

IV. On-chain indicators
According to Oklink data, by observing the number of held addresses, it can be seen that the number of BTC held addresses has fallen back again, with serious selling pressure above the market. As of 16:00 today, the locked position of BTC anchored assets in DeFi is 241474 (242080), and the net decrease of BTC locked position in DeFi is 606 pieces of BTC. The market of BTC tends to be wide oscillating.

V. Panic Index and Buy/Sell Strength Indicator
According to alternative.me data, today’s panic and greed index is 18 (10 yesterday), the market panic index has increased slightly. According to Baidu search index, Bitcoin search volume rose slightly and market attention increased. According to Toronto Exchange data, BTCC volume copies 566726 (502119) throughout the day, with a slight increase in volume; the gray GBTC premium was -11.3% (-11.9% yesterday). According to coincoin data, as of 16:00 today, BTC current funding rate +0.01% (yesterday -0.001%), the funding sentiment is slightly enhanced; the current bitcoin RSI 14 (buying and selling relative strength index) is 44.4 (yesterday 39.34), the buying power in the field is slightly increased. On balance, market sentiment has increased, off-site attention has grown, and on-field buying power has grown, with a recovery in long-side strength.

VI. Contract Indicators
According to coincoin data, as of 17:00, the ratio of long and short positions on the whole BTC network is: 50.42% long and 49.58% short, with the long positions slightly dominant. According to OKEx contract data, on the hourly chart, the BTC long-short position count ratio is rapidly moving higher back down, and the overall short-term bullish sentiment is still relatively strong. Overall, the contract market is slightly dominated by long positions, BTC long and short positions than short term higher retreat, BTC market is expected to maintain the oscillating market.

Seven, mainstream assets and popular coins
According to Chainext data, the mainstream crypto index in the crypto market is generally slightly down today, and the mainstream index of large-capitalization is slightly down, and the funds are in a strong wait-and-see mood. Currently, among the top 100 coins in the 24-hour period, the top five coins in terms of gain are: DCR (11.5%), ENJ (11.0%), GRT (10.5%), LEO (9.3%), and XRP (8.6%).

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/crypto-market-panic-remains-btc-may-have-started-bottoming-out/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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