WMA: Early Optimism Fizzles Out as Bitcoin Fails to Recover Again and Altcoins Bleed Heavily
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $1,414 trillion.
- Bitcoin is down by almost 6% after a promising but deceitful start of the week.
- Ethereum is down by almost 12% in the past seven days.
- XRP has dropped by nearly 15% over the week.
- Binance Coin, Polkadot, and Cardano have been bleeding heavily throughout the week.
- The DeFi sector lost almost $4 billion in total value protocols (TVL).
Crypto Trends 14th – 20th of June 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market fails to recover yet again as it closes another week with significant losses across the board. Also, it lost more than $100 billion in market capitalization. We might soon see the market cap drop below the $1 trillion thresholds if the drop continues.
Bitcoin started the week trading as low as $36,000. However, it soon gathered pace, and before Monday was over, it was trading close to $40,000. Everyone was optimistic that the steady, long-term recovery had just started.
Unfortunately, the primary cryptocurrency failed to reach the investors’ expectations. Soon, it dropped below $35,000, and what seemed like a bullish run was nothing more than a slight relaxation from the bears.
Bitcoin is now trading at around $34,000 and ends the week with a significant loss north of 5%. The next level of support lies at $32,300, and the closest resistance target is $35,400.
Last week, Ethereum surprised everyone with its sudden bleeding. What appeared to be nothing more than a scratch now looks like a wide-open wound. At the time of this writing, the second crypto in command is close to recording another 13% weekly loss. Above all, it might see it drop below the psychological resistance level at $2,000. Ethereum is now trading at around $2,080.
Ripple’s XRP is also on a downward spiral. After losing nearly 15% of its value this week, XRP is trading at around $0.71. The dreams of overcoming the $1 level again are almost over, and the nearest resistance at $0.82 seems like a more approachable target.
It’s been a bad week for the entire crypto community. Almost all the altcoins have lost precious value points, and their bleeding doesn’t seem to end anytime soon.
What’s in the News?
- The Spanish Bank BBVA announced that it would launch Bitcoin trading and custodial services in Switzerland starting with June 21st.
- Paraguay authorities have confirmed that the country will legislate Bitcoin starting with July 2021.
Next Week’s Market Forecast
Another week finishes under the bears’ control over the crypto market. However, seasoned investors should remember that this trading stage is a normal occurrence in the short life of one of the most promising financial enterprises.
Good news comes from Bitcoin’s dominance in the overall crypto market, which is steadily rising and reached 45% from 43% last week. Also, the cryptocurrency’s official adoption as legal tender by states like El Salvador, Panama, and Paraguay could support a faster recovery. So maybe, the light at the end of the tunnel is not as far as it seems.