Bitpanda Pro • 4 min read
By Bitpanda Pro
Bitcoin’s monthly candle was its second biggest red candle ever as it tanked 40% from the beginning of May while Ethereum closed the gap.
- Historic times for the crypto market
- Bitcoin trying to find support after correction
- Crypto Fear and Greed index indicating extreme fear
- Ethereum closing the gap behind Bitcoin
- Ripple court case is slowly progressing
The old traders quote “Sell in May and go away” was indeed in place last month, as the cryptocurrency markets experienced one of their worst monthly performances in history. Bitcoin’s monthly candle was its second biggest red candle ever as it tanked 40% from the beginning of May. By comparison, May tends to be a very profitable month for BTC — in 2017 and 2019, for instance, it gained more than 50%. History was written in many aspects; the largest single-day drop in the crypto market created the largest red candle in history which continued throughout the whole week and created the largest weekly drop ever seen on the crypto market. Overextended, leveraged speculators only added fuel to the fire with liquidations which caused a cascading trigger of drops.
The market bottomed out last week and tried to find new support levels. A ranging market is very common after huge corrections and it can take several weeks before it eventually finds a bottom and makes the next move. Consolidation is a technical analysis term used to describe a price movement within a given support and resistance range for a period of time. It is usually caused as a result of trader indecisiveness. In times like this, investors should focus more on strong fundamental factors like project longevity instead of jumping on every short-term price movement.
Bitcoin started to show some positive movement on the daily chart while the weekly chart began to show signs of a slowdown. A ranging market also supports major altcoins, which are showing signs of recovery. Bitcoin is still notoriously volatile but prices still remain up by more than 25% for the year, despite the recent meltdown. However, the biggest monthly drop recorded was back in September 2011, when Bitcoin lost just slightly more value than now. Back then, Bitcoin hit a low of just under €2, which is hard to imagine with prices we are seeing now.
This indicator, which showcases the emotional side of crypto market behaviour, is the measurement of the Crypto Fear & Greed Index which has fallen to 23. On a scale of 1-100 where lower scores are associated with “extreme fear”, while top numbers represent “extreme greed”. The index tries to quantify the strength of the overall sentiment regarding cryptocurrencies by using different sources and transforming those figures into one number. This could be a sign of a market bottom, as extreme fear signifies that investors are very worried, which could be a buying opportunity, while extreme greed means the market is due for a correction. The index peaked in May at 73, a week before the drop.
Ethereum followed Bitcoin in terms of price action but was acting in a more resilient way than its “big brother”. The price and trading volume of ETH are surging higher as the second largest cryptocurrency keeps closing the gap behind BTC in terms of market cap metrics. The total value of Ethereum is about €230b,, while Bitcoin’s market value now stands at around €540b.
Ethereum’s value is hovering at around €2,000, 42% lower from its peak, but still up by 250% for the year to date (YTD). Ether is more volatile than Bitcoin, as it has a smaller market cap and is less institutionalised, but this could change in future as it grows in adoption.
XRP, the native token of the Ripple network, has been caught in a high-stakes legal battle with the Securities and Exchange Commission (SEC) since last year. The SEC charged Ripple co-founders, Chris Larsen and Brad Garlinghouse, with conducting an illegal security offering that allegedly raised more than €1b through sales of XRP. The case is slowly progressing as the two parties are meeting regularly in court. Ripple is defending very well, which can be seen through the token price as it holds very well throughout turbulent moments. Aside from the case result, which will inevitably influence the price of the token for better or worse, it’s worth mentioning that XRP is one of the rare major altcoins that still did not reach its 2017-2018 all-time-high. Currently, XRP is trying to get back to €1. Despite recent price corrections, XRP is still up more than 300% for the year to date, which makes it one of the best-performing assets over the past year.
Why your money is safe with BitpandaRead more
Bitpanda Tech • 3 min read
Bitpanda Tech • 2 min read
Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
As the name would suggest, some cookies on our website are essential. They are necessary to remember your settings when using Bitpanda, (such as privacy or language settings), to protect the platform from attacks, or simply to stay logged in after you originally log in. You have the option to refuse, block or delete them, but this will significantly affect your experience using the website and not all our services will be available to you.
We use such cookies and similar technologies to collect information as users browse our website to help us better understand how it is used and then improve our services accordingly. It also helps us measure the overall performance of our website. We receive the date that this generates on an aggregated and anonymous basis. Blocking these cookies and tools does not affect the way our services work, but it does make it much harder for us to improve your experience.
These cookies are used to provide you with adverts relevant to Bitpanda. The tools for this are usually provided by third parties. With the help of these cookies and such third parties, we can ensure for example, that you don’t see the same ad more than once and that the advertisements are tailored to your interests. We can also use these technologies to measure the success of our marketing campaigns. Blocking these cookies and similar technologies does not generally affect the way our services work. Please note, however, that while you’ll still see advertisements about Bitpanda on websites, the adverts will no longer be personalised for you.