As a seasoned crypto investor, I’ve witnessed my fair share of market corrections and liquidation events. The recent sell-off in the crypto market, with Bitcoin dropping below $60,000 and major altcoins following suit, has left many investors feeling disheartened. The news of significant liquidations from Mt. Gox and the German Government selling seized Bitcoin only added fuel to the fire.
Starting in early July, the crypto market entered an extended correction period. On Thursdays, Bitcoin dipped below $60000, causing a significant sell-off. This downturn dashed the hopes of some major cryptocurrencies reaching local minimums and fueled fear, uncertainty, and doubt (FUD) among investors.
As an analyst, I’ve been closely monitoring on-chain data and I can tell you that Bitcoin has just gone through the second largest liquidation event in its existence, surpassed only by the collapse of FTX in November 2022. This market turbulence arises at a time when Germany reveals its intention to sell off seized Bitcoins worth $3.5 billion, and Mt. Gox begins distributing compensation to its creditors, with a planned payout of approximately $8.5 billion.
Recent on-chain information indicates that this is the second largest Bitcoin liquidation incident to date, surpassed only by the FTX collapse in November 2022.
Amidst reports that Germany intends to offload approximately $3.5 billion in confiscated Bitcoin, and Mt. Gox starts making restitution totaling $8.5 billion.
— WhaleWire (@WhaleWire) July 5, 2024
In spite of the present downward trend in demand, the following cryptocurrencies exhibit remarkable strength and indications of a forthcoming price increase.
1. Safe Haven Cryptocurrencies – Toncoin (TON)
The Open Network (TON) hosts Toncoin (TON) as its indigenous digital currency, which was initially spearheaded by Telegram but has since evolved into a community-governed system.
As a researcher, I’ve discovered that TON, one of the leading cryptocurrencies in 2024, has displayed remarkable growth, recording a Year to Date (YTD) increase of approximately 207.1%. Despite the ongoing market correction, this digital asset continues to maintain its position above the crucial support level of $6.7.
As a crypto investor, I’ve been closely monitoring the daily chart of TON, and I’m observing an intriguing development. The rejection we’ve seen today from the combined support of $6.7 and the 100-day moving average (EMA) at around $8.5, suggests that demand pressure remains strong. This long-tail rejection is a bullish sign for TON, indicating buyers are stepping in to absorb sellers’ supply at these levels. Currently, the TON price hovers around $6.9 with a market cap of approximately $17.85 billion.
If the demand continues to be strong, the Toncoin price may bounce back and attempt to surpass its previous high of $8.2, potentially extending the bull market.
2. TRON
TRON (TRX) is a blockchain platform that aims to create a global digital entertainment system. It offers free content and supports the development of decentralized applications within this system.
The TRON price has been consistently climbing up on the daily chart since November 2022. A flexible trendline serves as a reliable foundation for purchasers during market downturns, keeping the “buy on dips” mentality alive among them.
On the 18th of June, TRON experienced a change in direction from its upward trendline, resulting in a 12.56% price increase to reach $0.12. Subsequently, the market capitalization climbed up to $11.07.
Should the pressure from market supply continue, the TRX price may drop by approximately 6% and potentially retest the ascending trendline. As long as this support holds, the TRON coin is expected to keep its upward trajectory.
3) BONK
“Bonk is a fun and inclusive meme coin that operates on the dynamic Solana blockchain. It positions itself as a ‘community coin,’ created by the people, for the people.”
In the midst of the latest market adjustment, the value of BONK plummeted from $0.000045 to $0.000018, translating into a significant loss of 59%. This downward trend came to a halt when it touched an uptrend line that has bolstered BONK’s bullish momentum for the past five months.
Bucking the market downturn, BONK’s price bounced back from an uptrend line with a noteworthy surge of 11% to reach a trading value of $0.000023. Consequently, its market capitalization swelled to a significant $1.57 Billion. If the underlying support persists, it is plausible for this altcoin to recover further and surmount the resistance trendline at $0.000027, which may eventually pave the way for $0.000035.
Key Takeaway
In the cryptocurrency market, Bitcoin’s price dip below $60,000 triggers increased selling pressure. This trend is amplified by Mt. Gox liquidations and the German Government’s influence. The downward momentum extends to altcoins, causing several assets to reach their lowest monthly or annual support levels. Amidst this bearish market, certain cryptocurrencies show resilience and hold their ground against the relentless selling pressures.
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2024-07-06 09:17