Weekly Cryptocurrency Market Analysis: Bitcoin, Ethereum, and Polygon

Bitcoin

For seven days, from May 12 to May 19, Bitcoin rose by 0.35%. The largest increase was observed on Wednesday, May 17 – 1.36%, and the largest drop – on Thursday, May 18 – 2.14%. Overall, BTC was in the $25,800-$27,666 range last week.

Source: tradingview.com

The main reason for any jumps in the cryptocurrency market is the situation of uncertainty with the US debt ceiling. So far, US congressmen continue negotiations, but no visible progress has been made. This reinforces anxiety of crypto-investors, as a very specific prospect looms – default.

At the same time, large players (those with accounts from 1,000 to 10,000 BTC) are clearly not embarrassed by this development. They have been building up their positions for the past five weeks. This can only speak in favor of the fact that institutional investors expect the price to rise. Will they not buy in order to be at a loss?

Source: app.santiment.net

According to technical analysis, bitcoin is in the sideways. At the same time, it is important that during the week it broke through the $26,500 support level several times, but closed higher. Thus, the bears were unable to reign in the market. In case of growth, the nearest resistance level should be the high of the current week at $27,666.

Source: tradingview.com

Index fear and greed the week has not changed much, falling from 49 to 48. It is still in the neutral zone.

Ethereum

Over the week, the price of Ethereum has changed slightly – from $1,808.5 at the close on Friday, May 12, to $1,810.3 as of May 19. Thus, the growth was less than 0.1%. The peculiarity of this week was the absence of ETH volatility: on all days the price changed by less than 1.5%.

Source: tradingview.com

How informs analytical platform Santiment, the decrease in activity is due to the fact that the number of cryptocurrencies listed on exchanges is only 10.1%. This is a historic low for broadcast since 2015.

“While Ethereum is down to $1,780 today, we see the supply on the exchanges continue to decline. The percentage of ether on exchanges is at its lowest since the beginning of public trading in 2015 and is 10.1%. In fact, this is an all-time high for assets held in over-the-counter wallets.”

Source: app.santiment.net

It is likely that crypto enthusiasts now prefer not to try to make money on cryptocurrency courses, but participate in staking. The amount of Ethereum staked still far exceeds the withdrawal volumes, with a difference of more than 650,000 ETH over the past seven days.

Source: dune.com

From the point of view of technical analysis, the second cryptocurrency by capitalization is in the flat. The levels from last week remained unchanged: support – $1,750, resistance – $2,000.

Source: tradingview.com

Polygon

Over the past week, the cost of Polygon (MATIC) has changed slightly – an increase of only 0.6%. Cryptocurrency has been falling globally since February 18. Since then, the decline has been over 40%. The most interesting moment over the past seven days was the price drop on May 16 by more than 30%. However, this was only a fleeting occurrence.

Source: tradingview.com

While the price of MATIC is falling, the platform itself is doing well. By messages NFT Tech platform, which promotes Web3 technologies, Polygon is the most popular blockchain for brands by May 2023. It accounts for 41%. According to this indicator, it recently overtook Ethereum, informed Polygon CEO Ryan Wyatt.

In addition, the platform is going to develop the environmental agenda. This week it became known agreements Polygon with startup Solid World, which provides financial and technical tools to combat climate change. According to Solid World CEO Stenver Jerkku, will be created a forward pool of carbon credits, where permits for emissions into the atmosphere will be sold at prices determined by an automatic market maker. Carbon credits are emissions permits.

But from the point of view of technical analysis, the picture is relatively bleak. MATIC price is below both the 50-day (green) and 200-day (orange) moving averages. In addition, the first one recently crossed the second one from top to bottom, which means that a so-called dead cross has formed, which indicates with a high probability a further decline. The support levels are $0.7 and $0.6, the low of the current week. The resistance level is $1.05.

Source: tradingview.com

Thus, while there has been a lull in the cryptocurrency market. The price of Bitcoin, Ethereum and Polygon has changed by less than 1% over the week. The main reason for this is the general macroeconomic uncertainty.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.