The bulls thought they had overtaken the bears after three days of positive growth. But the upward recovery doesn’t seem to have been the result of a real bullish breakout, even if it meant letting it get out of its sideways phase (range).
According to Coinmarketrate.com, this attempt at upward recovery has benefited other cryptocurrencies on the market. The price of Ethereum was rising to 4,200. XRP was a few points away from breaking the $1 mark. Other projects that were silent revived thanks to the good BTC indicators. But, as for the king of the cryptocurrency market, the bears have lowered Bitcoin below the 50-month weekly level.
During yesterday’s session on Tuesday, the bears managed to roll back the price a little more to the 50-week moving average, reducing it by 4.74%. The BTC price dropped to $48,345, which is less than $162 from its 50-month level for the week.
Now it becomes clear that the bears will do everything to prevent Bitcoin from breaking back above the 21-week moving average around $53,000. For now, their strategy is to extend the BTC sideways phase as long as possible. Thus, the “weak hands” will continue to yield, dumping the crypto asset.
However, something absolutely incredible is happening in this new fall of Bitcoin. Intraday trading volume increased by 37.85%. This indicates signs of accumulation during a downturn. Hence, there is a need to question the current movement of Bitcoin. Is this a bull trap or preparation for a bull run? So think after that, what is more suitable for the current Bitcoin price?
The quiet groan of the altcoin market
Well, if you are tired of swinging with a Cue ball, then imagine fans of alternative coins. The gnashing of their teeth can be heard throughout the cryptocurrency space.
The daily decline of the BTC leads to the fact that altcoins enter a bear market. In general, cryptocurrencies lost almost 4.78%. Altcoins have become much more volatile than BTC.
Polkadot (DOT) leads with intraday losses of 9.23%. The cryptocurrency is a few pennies away from breaking below the 100-day moving average ($29.06).
Ethereum is stuck below $4,000. Over the past 24 hours, its price has decreased by 4.80%. Terra Luna, the price of which has risen sharply over the past few days, decreased by 8.59% per day. Currently, the LUNA token costs $87.49, which is 14.7% lower than its historical maximum of $ 103.34.
Second-tier cryptocurrencies, such as metaverse tokens, are also buckling under market pressure. On a daily basis, the price of MANA is reduced by 9.01%. Sandbox is also suffering from market volatility. Over the past 24 hours, its value has fallen by 8.71%. In the top 50, only IOTA (MIOTA) is able to show positive growth. In 24 hours, the stock price rose by 4.17%.
But, as folk wisdom says, there will always be someone who is worse off than you.
Outsiders of 2021
Although 2021 was a significant year for the cryptocurrency sector, some projects had a harder time than others. In particular, this applies to such as the Internet Computer Project (ICP) or Litecoin, which was excluded from the top 10. If Solana, Avalanche or Binance Smart Chain are often presented as successes of 2021, then which projects, on the contrary, had a more difficult year. Together we will see that the “failures” of 2021 sometimes need to be put between large inverted commas.
Litecoin, Bitcoin Cash and Chainlink are excluded from the Top 10
Just a year ago, the Litecoin project was ranked fourth in the cryptocurrency ranking. Bitcoin Cash and Chainlink ranked seventh and tenth, respectively. Thus, in 2021, these projects were excluded from the top 10 by market capitalization.
Today, the Chainlink project ranks twenty-first among the most important crypto projects. The decline in Bitcoin Cash is more pronounced: from seventh to twenty-fourth place. Litecoin has dropped from fourth place at the beginning of 2021 to nineteenth place today.
Despite the fact that all these projects are declining, in all of them there is an increase in the market capitalization and the price of a token unit. For example, in one year, the price of Litecoin increased by 28% from $124 to $159. The same applies to Bitcoin Cash: in 2021, the token rose in price from 342 to 472 (+38%). Chainlink price increased from $11.3 to $24.2(+113%)
The following table shows the dynamics of these three projects during 2021. The figures show that the so-called “losing” projects lose only in relation to the crypto sector as a whole. Thus, in 2021, Chainlink, Litecoin or Bitcoin Cash recorded both an increase in the market value and the evolution of the price of their tokens.
Internet Computer (ICP): Falling into Hell
The Internet Computer project was a success story. After more than 5 years of development, the project wanted to revolutionize the Internet, from the point of view of developers. The proposed solution was to allow developers to install their code on a kind of public Internet without resorting to the services of traditional hosting companies.
When the token was launched in mid-May 2021, the hype was especially strong. At the peak of its development, the token will even exceed the $750 mark. The date is May 10, 2021. At the end of the month, the token barely exceeded the $100 mark. In just 3 weeks, the project was completely devalued, losing almost 85% of its value.
The following chart shows the price of the ICP token since May:
EOS: the killer of Ethereum, which was stopped in the bud
At the beginning of 2021, the EOS project was presented by the markets as one of the most serious “killers of Ethereum”. Twelve months later, it became clear that either the killer’s suit was too big, or the killer turned out to be so-so.
If at the beginning of 2021 the project ranked fifteenth among the main crypto projects, then during the year it dropped again. Today, EOS is not even in the top 50, occupying the fifty-first position in the market capitalization ranking. Nevertheless, as in the case of Litecoin, Chainlink or Bitcoin Cash, the unit price of the EOS token increased in 2021: +17%.
A level that remains largely lagging behind the cryptocurrency market over the same period. The same can be said about the XMR token of the Monero project. Sixteenth at the beginning of 2021, now the project occupies the forty-fifth position.
While Gala (+48,100%), Axie Infinity (+17,300%) and The Sandbox (+16,600%) are the three projects in the top 100 that grew in 2021, Nem, Bitcoin SV and Zilliqa are the three projects in the top 100 that lost, with the exception of Internet Computer.
Indeed, since the beginning of the year, the price of the Nem project has fallen by more than 40%, while the price of Bitcoin SV has decreased by 23%. The decline remains more moderate for the Zilliqa project, which shows 3% losses for 2021.
The Synthetix project, which was close to the top 30 at the beginning of 2021, is now outside the top 100, and Revain, which ranked 33rd in 2021, is now in 108th place.