Cointree Crypto Market Update - May 26th 2021

Market update for traders

A turbulent consolidation period!

Bitcoin (BTC) started the week at $52k AUD and in typical fashion, found its low for the week on Sunday at $42k, a 20% drop within the five-day period. It’s possible that news of China cracking down on bitcoin mining and banning financial institutions from accepting crypto, as well as the US indicating they may require crypto transactions of $US10,000 or more to be reported to tax authorities could have influenced this drop. Fortunately however, Sunday evening saw a small rally recover most of this fall, climbing the cryptocurrency back to just over $51k, and stabilising around the $49k mark at the time of writing on the 4 hour chart. While there has been a steep downward trend since 12 May, it appears BTC has found strong support in the $45k region and broken to the upside of this, for now. In the week ahead, consolidation looks likely to continue with analysts monitoring for a breakout at either side of $40k or $50k to determine where it will head next.

Following a market correction, we’ve seen a healthy bounce back in the land of altcoins with Origin Protocol (OGN) seeing an increase of 88.66%. Matic Network (MATIC) and Terra (LUNA) round out the altcoin podium with 32.92% and 30.24% respectively while Loopring (LRC) gets an honourable mention up 29.91%.

Read our full market update here.

Market update for beginners

Bitcoin (BTC) started the week at $52k AUD and in typical fashion, found its low for the week on Sunday at $42k, a 20% drop within the five day period. It’s possible that news of China cracking down on bitcoin mining and banning financial institutions from accepting crypto, as well as the US indicating they may require crypto transactions of $US10,000 or more to be reported to tax authorities could have influenced this drop. Fortunately however, Sunday evening saw a small rally recover most of this fall, climbing the cryptocurrency back to just over $51k, and stabilising around the $49k mark at the time of writing on the 4 hour chart. While there has been a steep downward trend since 12 May, it appears BTC has found strong support in the $45k region and broken to the upside of this, for now. In the week ahead, consolidation looks likely to continue with analysts monitoring for a breakout at either side of $40k or $50k to determine where it will head next.

Following a market correction, we’ve seen a healthy bounce back in the land of altcoins with Origin Protocol (OGN) seeing an increase of 88.66%. Matic Network (MATIC) and Terra (LUNA) round out the altcoin podium with 32.92% and 30.24% respectively while Loopring (LRC) gets an honourable mention up 29.91%. Read our full market update here.