Weekly Crypto Analysis: BTC Bulls Lose Steam; Bitcoin Mining, KuCoin Anniversary, Binance in Highlights

2022/10/12 08:49:35

Bitcoin, alongside the rest of the crypto market, has remained mostly bearish, following the pessimistic mood caused by the global macro instability. The largest cryptocurrency by market cap wicked below the $19,000 mark, risking a move toward the downside and a retest of recent lows. The overall cryptocurrency market volume in the past 24 hours came up to $53 billion - staying at exactly the same levels compared to the previous week. The overall crypto market cap remained under the $1 trillion mark, now totaling $919.83 billion.

Let's delve deeper and take a quick look at the latest crypto market news and BTC's technical outlook.

Crypto Market Overview

As we mentioned in the previous report, Bitcoin's drop below the $20,000 mark has shown to be definitive in the short term, and that has not changed in the new month. In fact, the largest cryptocurrency by market cap is now testing the $19,000 level, with the potential of dropping below and towards the $17,600 - the low set in June 2022. BTC’s dominance has been fairly stable, now standing at 38.65%. The most valuable cryptocurrency pair, BTC/USDT, is currently trading at $19,110.28, while ETH/USDT, the second-largest cryptocurrency by market capitalization, has fallen to 1,284.47, down 3.11% in the past week.

Cryptocurrency Market Heatmap | Source: Coin360

The top performers from the previous week were TerraClassicUSD (USTC), which maintained its first spot two weeks in a row, as well as Huobi Token (HT), and Casper (CSPR). USTC has increased by 75.52%, while HT gained 28.48% in the past seven days. Finally, CSPR gained 14.72%.

On the other hand, Lido DAO (LDO), Ethereum Classic (ETC), and Chilliz (CHZ) were the worst performers of the week. LDO is down 17.13%; ETC is down 13.74% in the last seven days; CHZ is down 13.33%.

Top Altcoin Gainers and Losers

Top Altcoin Gainers:

TerraClassicUSD (USTC) ➠ 75.52%

Huobi Token (HT) ➠ 28.48%

Casper (CSPR) ➠ 14.72%

Top Altcoin Losers:

Lido DAO (LDO) ➠ 17.13%

Ethereum Classic (ETC) ➠ 13.74%

Chilliz (CHZ) ➠ 13.33%

News Highlights

Here are some of the events that made the previous week's crypto news section stand out:

KuCoin is Celebrating its 5th Anniversary

KuCoin, one of the largest cryptocurrency exchanges, is celebrating its 5th anniversary, as well as many achievements it reached in the time span. The exchange managed to reach over 20 million users globally, list over 700 cryptocurrencies, as well as pass over $2 trillion in total volume.

To celebrate the 5th anniversary of KuCoin Exchange, we will be launching numerous trading and non-trading campaigns, including the My Crypto Story campaign, where people can participate and share 20,000 USDT.

Bitcoin Mining Difficulty Hits New All-Time Highs

The Bitcoin mining difficulty has reached its new all-time highs despite the negative market sentiment. With the last difficulty setting in, miners now need 13.5% more hash power in order to mine one BTC.

Bitcoin Mining Difficulty Chart | Source: blockchain.com

The last time a difficulty spike this big has been seen was in May 2021, at the height othe f crypto bull market.

The current network hash rate now comes up to 257 million terra hashes per second (TH/s), according to blockchain.com. The last hash rate increase has set a year-over-year increase of 117 TH/s.

Binance Smart Chain Hack: $570 Million at Risk

Over the weekend, Binance Smart Chain, a blockchain closely connected with crypto exchange Binance, was the latest victim in a bridge exploit that ultimately drained the ecosystem of $100 million in crypto.

However, the exploit could have been much worse, as the initial amount at risk was as high as $570 million.

The community, as well as the validators, sprung into action quickly, and were able to ultimately lock down the chain and prevent the majority of the newly-minted BNB from being able to leave the ecosystem.

However, this has sparked a debate regarding centralization within blockchains among the crypto community.

Crypto Adoption in Brazil Spikes

The number of companies that have declared cryptocurrency holdings in Brazil has reached new record highs. According to local media reports, the number of recorded companies that hold cryptocurrencies in Brazil reached 12,053 in August of 2022.

The increase in crypto holdings came as a result of high inflation rates and the trust that cryptocurrencies will offset the potential inflation loss.

The total number of companies holding crypto in Brazil has increased by 6.1% from July’s numbers.

The Fear & Greed Index at 24, Market Sentiment Remains Low

The fear and greed index has shown no intention of moving up, with the current number sitting at 24, the same value it had the previous week. The indicator still indicates “extreme fear,” caused by the up-and-coming recession that will most likely affect the world even more in the winter months.

Fear & Greed Index | Source: Alternative

Crypto Calendar: Events to Watch This Week

➺ 11/10/2022 - Meridian 2022 Conference

➺ 11/10/2022 - Devcon 2022

➺ 11/10/2022 - ETHPOW LBank Listing

➺ 12/10/2022 - Kava 11 Launch

➺ 12/10/2022 - Bitcoin Amsterdam

➺ 12/10/2022 - Web3 App Summit

Bitcoin (BTC/USDT) Analysis on KuCoin Chart

Bitcoin has been on a slight downturn, ending only one day in the past week in slight green. The largest cryptocurrency by market cap has failed to break the falling 50-day moving average, prompting a drop toward the $19,000 level. Bitcoin is now attempting to remain above the level it fell to, with extremely strong immediate resistance levels sitting at the 21-day and 50-day moving averages.

While a push above the 21-MA sitting at $19,360 could be the spark that pushes BTC towards the $19,860 and 20,000 marks, this move is currently highly unlikely.

BTC/USDT Chart on the Daily Timeframe | Source: KuCoin

When it comes to support and resistance levels, Bitcoin is likely to encounter resistance to the upside just below $19,400 and at $19,860, as well as $22,850. On the other side, analysts state that traders should watch out for $18,150, as this is the only level separating Bitcoin from the $17,600 level.

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