• Home
  • Podcast
  • App
No Result
View All Result
Subscribe
×
sign in
  • Learn
    • All
    • Crypto Basics
    • Token Metrics Tutorials
    • Weekly Index Performance
    Bitcoin: Everything You Need To Know

    Bitcoin: Everything You Need To Know

    What is Web 3.0? Everything You Need to Know

    What is Web 3.0? Everything You Need to Know

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Weekly Index Performance – May 26, 2022

    Weekly Index Performance – May 26, 2022

    NFTs Explained: What Are Non-Fungible Tokens?

    NFTs Explained: What Are Non-Fungible Tokens?

    Weekly Index Performance – April 27, 2022

    Weekly Index Performance – April 27, 2022

    When Does the Crypto Market Close?

    When Does the Crypto Market Close?

    Will Shiba Inu reach $1?

    Will Shiba Inu reach $1?

    How to Receive Crypto Alerts Through Token Metrics

    How to Receive Crypto Alerts Through Token Metrics

    • Crypto Basics
    • Weekly Performance
  • Market Analysis
    • All
    • Market Navigator
    • Market Update
    The Next Stage and a Look to the Future | Navigator

    The Next Stage and a Look to the Future | Navigator

    DXY and Revised 2022 Road Map | Navigator

    DXY and Revised 2022 Road Map | Navigator

    BTC Monthly Chart, ETH Summer Roadmap, Q&A | Navigator

    BTC Monthly Chart, ETH Summer Roadmap, Q&A | Navigator

    Layer 1’s, Stocks, Dollar, and Oil | Navigator

    Layer 1’s, Stocks, Dollar, and Oil | Navigator

    Volatility Will Increase Dramatically |  Market Update

    Volatility Will Increase Dramatically | Market Update

    The Purge | Market Update

    The Purge | Market Update

    Crypto Fire Alarm | Navigator

    Crypto Fire Alarm | Navigator

    Reduce Exposure to Risk Assets | Navigator

    Reduce Exposure to Risk Assets | Navigator

    Ethereum vs. Solana: What You Should Know Before Investing

    Ethereum vs. Solana: What You Should Know Before Investing

    • Market Update
    • Price Prediction
    • Market Navigator
  • Deep Dive
  • Hidden Gems
    • All
    • DeFi
    • Gaming and Metaverse
    • NFTs
    • Web 3
    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    The GODA Mint Pass & Bubblegoose Ballers | Hidden Gems – NFTs

    The GODA Mint Pass & Bubblegoose Ballers | Hidden Gems – NFTs

    Osmosis, Cosmos ecosystem, Brahma Finance | Hidden Gems – Defi

    Osmosis, Cosmos ecosystem, Brahma Finance | Hidden Gems – Defi

    Hivemapper, ImmutableX, Flare Network | Hidden Gems –  Web 3

    Hivemapper, ImmutableX, Flare Network | Hidden Gems – Web 3

    Mina Protocol, NFTfi, Arweave  | Hidden Gems – Web 3

    Mina Protocol, NFTfi, Arweave | Hidden Gems – Web 3

    Chimpers, Diplo, Dogamí Series 2, Vandal City  | Hidden Gems- NFTs

    Chimpers, Diplo, Dogamí Series 2, Vandal City | Hidden Gems- NFTs

    Aurora Plus, Francium Finance | Hidden Gems – Defi

    Aurora Plus, Francium Finance | Hidden Gems – Defi

    • DeFi
    • Gaming and Metaverse
    • NFTs
  • Code Reviews
  • Reports
    • All
    • Altcoin Quarterly
    • Awards and Ratings
    • News and Thought Leadership
    The Best Crypto News Sites of 2022

    The Best Crypto News Sites of 2022

    The Best Crypto Analysts of 2022

    The Best Crypto Analysts of 2022

    Token Metrics + CEX.IO Promotional Coupon

    Token Metrics + CEX.IO Promotional Coupon

    Partner plan

    NEW Token Metrics Partner Plan

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q3 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q3 2021

    Coinbase vs. Coinbase Pro: Which is Better for Investors in 2022?

    Coinbase vs. Coinbase Pro: Which is Better for Investors in 2022?

    Top 3 Biggest Crypto Companies In 2022

    Top 3 Biggest Crypto Companies In 2022

    • Altcoin Quaterly
    • Moon Awards
    • News and Thought Leadership
  • TV
  • Learn
    • All
    • Crypto Basics
    • Token Metrics Tutorials
    • Weekly Index Performance
    Bitcoin: Everything You Need To Know

    Bitcoin: Everything You Need To Know

    What is Web 3.0? Everything You Need to Know

    What is Web 3.0? Everything You Need to Know

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Weekly Index Performance – May 26, 2022

    Weekly Index Performance – May 26, 2022

    NFTs Explained: What Are Non-Fungible Tokens?

    NFTs Explained: What Are Non-Fungible Tokens?

    Weekly Index Performance – April 27, 2022

    Weekly Index Performance – April 27, 2022

    When Does the Crypto Market Close?

    When Does the Crypto Market Close?

    Will Shiba Inu reach $1?

    Will Shiba Inu reach $1?

    How to Receive Crypto Alerts Through Token Metrics

    How to Receive Crypto Alerts Through Token Metrics

    • Crypto Basics
    • Weekly Performance
  • Market Analysis
    • All
    • Market Navigator
    • Market Update
    The Next Stage and a Look to the Future | Navigator

    The Next Stage and a Look to the Future | Navigator

    DXY and Revised 2022 Road Map | Navigator

    DXY and Revised 2022 Road Map | Navigator

    BTC Monthly Chart, ETH Summer Roadmap, Q&A | Navigator

    BTC Monthly Chart, ETH Summer Roadmap, Q&A | Navigator

    Layer 1’s, Stocks, Dollar, and Oil | Navigator

    Layer 1’s, Stocks, Dollar, and Oil | Navigator

    Volatility Will Increase Dramatically |  Market Update

    Volatility Will Increase Dramatically | Market Update

    The Purge | Market Update

    The Purge | Market Update

    Crypto Fire Alarm | Navigator

    Crypto Fire Alarm | Navigator

    Reduce Exposure to Risk Assets | Navigator

    Reduce Exposure to Risk Assets | Navigator

    Ethereum vs. Solana: What You Should Know Before Investing

    Ethereum vs. Solana: What You Should Know Before Investing

    • Market Update
    • Price Prediction
    • Market Navigator
  • Deep Dive
  • Hidden Gems
    • All
    • DeFi
    • Gaming and Metaverse
    • NFTs
    • Web 3
    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    Sneakerheads, The Possessed NFT | Hidden Gems – NFT

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    OnChainMonkey & RUNNER | Hidden Gems – NFTs

    The GODA Mint Pass & Bubblegoose Ballers | Hidden Gems – NFTs

    The GODA Mint Pass & Bubblegoose Ballers | Hidden Gems – NFTs

    Osmosis, Cosmos ecosystem, Brahma Finance | Hidden Gems – Defi

    Osmosis, Cosmos ecosystem, Brahma Finance | Hidden Gems – Defi

    Hivemapper, ImmutableX, Flare Network | Hidden Gems –  Web 3

    Hivemapper, ImmutableX, Flare Network | Hidden Gems – Web 3

    Mina Protocol, NFTfi, Arweave  | Hidden Gems – Web 3

    Mina Protocol, NFTfi, Arweave | Hidden Gems – Web 3

    Chimpers, Diplo, Dogamí Series 2, Vandal City  | Hidden Gems- NFTs

    Chimpers, Diplo, Dogamí Series 2, Vandal City | Hidden Gems- NFTs

    Aurora Plus, Francium Finance | Hidden Gems – Defi

    Aurora Plus, Francium Finance | Hidden Gems – Defi

    • DeFi
    • Gaming and Metaverse
    • NFTs
  • Code Reviews
  • Reports
    • All
    • Altcoin Quarterly
    • Awards and Ratings
    • News and Thought Leadership
    The Best Crypto News Sites of 2022

    The Best Crypto News Sites of 2022

    The Best Crypto Analysts of 2022

    The Best Crypto Analysts of 2022

    Token Metrics + CEX.IO Promotional Coupon

    Token Metrics + CEX.IO Promotional Coupon

    Partner plan

    NEW Token Metrics Partner Plan

    NEW Token Metrics Crypto Market Indicators

    NEW Token Metrics Crypto Market Indicators

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q4 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q3 2021

    Best Altcoins of 2021 | Altcoin Quarterly Report | Q3 2021

    Coinbase vs. Coinbase Pro: Which is Better for Investors in 2022?

    Coinbase vs. Coinbase Pro: Which is Better for Investors in 2022?

    Top 3 Biggest Crypto Companies In 2022

    Top 3 Biggest Crypto Companies In 2022

    • Altcoin Quaterly
    • Moon Awards
    • News and Thought Leadership
  • TV
No Result
View All Result
No Result
View All Result
Home Market Analysis

The Purge | Market Update

by The Token Metrics Team
2022/05/15
in Market Analysis, Market Update
Reading Time: 6 mins read
0
The Purge | Market Update
0
SHARES
83
VIEWS

The Purge | Market Update

Review Date: Saturday, May 7, 2022

Token Metrics Navigator

Market Update: The Purge

BTC Weekly Chart

Market Update
Data as of 05/05/2022 | Past performance not indicative of future returns

In bitcoin, the 2-day close below $38,600 seems to hint at a move to $29,000. There may be a retest of $38,600. If BTC gets back above $38,600, then BTC could be stable.

ETH 4-hour Chart

Market Update
Data Source: Symbolik | Data as of 05/07/2022  | Past performance not indicative of future returns

On the ETH 4-hour chart, DeMark’s Elliot Wave tool suggests that ETH is currently in a 3-wave down. This wave count implies that ETH can fall below the low of Wave 1. That level is $2,164. Using Fibonacci work, the target for Wave 3 should be somewhere between $2,164 and $1,750.

BTC 4-hour Chart

Market Update
Source: Symbolik | Data as of 05/07/2022 | Past performance not indicative of future return

Looking at the 4-hour chart of bitcoin, $37,400 is resistance. We believe that any approach of this level will represent the last rally before a major three-wave down begins. This move could send bitcoin to either $32,000 or $30,727.

Total Altcoin Market Cap (TOTAL3) vs. ARK Innovation

Market Update
Data as of 05/07/2022 |Past performance not indicative of future returns

ARKK is an ETF that follows the equity market’s most speculative and popular stocks. Since the start of 2021, ARKK has been dropping. ARKK has recently retraced the pandemic rally and returned to where it was in March of 2020. We call ARKK the “altcoin of the stock market.” It TOTAL 3 follows ARKK back to its March 2020, which would represent a 60% decline in altcoin market cap.

Bitcoin Dominance (BTC.D) vs. Total Altcoin Market Capitalization (TOTAL 3)

Market Update
Data as of 05/07/2022 | Past performance not indicative of future returns

If the move mentioned above unfolds in Total Altcoin Market Cap (TOTAL3), BTC Dominance (BTC.D) returns to the higher end of its recent range. If such a move unfolded, TOTAL could fall from ~$600 billion to less than $200 billion, and BTC Dominance could rise from 44% to 66%. A bullish divergence and a bullish downward sloping wedge on the BTC.D chart could fuel a sharp move in bitcoin dominance. 

Bottom Line: This is not a bear market. It is a crash. ARKK took seven weeks to drop to its March 2020 lows. If altcoins follow the same track, TOTAL3 could fall to shockingly low levels by July 4.

Nasdaq 2000, Bonds vs. Bitcoin

Nasdaq Composite Weekly: 2000 – 2003

Market Update
Data as of 05/06/222 | Past performance not indicative of future returns

During the week ending 5/6/2022, the Federal Reserve raised the Fed Funds target rate by 0.50%. Since that rate hike was smaller than the market’s fear of a 0.75% hike, stocks reversed course and closed up on the day of the hike. A stock market reversal of that magnitude has only occurred once in the last 40 years. That was in March of 2000. That rally was at the top of the internet bubble in March 2000.

Market Update
Data as of 05/07/2022 | Past performance not indicative of future returns

Bonds are falling because long-term interest rates are rising. Long-term rates are rising because inflation is out of control, and the Fed has declined to fight inflation using short-term interest rates. Rising long-term rates and falling bond prices are destructive for risky assets, especially crypto.

Bottom Line: The author of the above section of this report has moved to 100% cash. Sell in May and go away. 

Microstrategy Bitcoin Margin Call Levels

Microstrategy, a U.S. software firm well-known for its eccentric CEO (Michael Saylor) and its substantial Bitcoin holdings, announced in its recent quarterly earnings webinar that the company would face a margin call if the price of BTC falls to $21k. In the past two years, Microstrategy has taken on a sizeable amount of long-term debt, roughly $2.3 billion, to finance the purchase of approximately 129k bitcoins at an average price of $30,700 (the current value of their holdings is $4.6 billion based on current BTC price of $35,000). Although there has been speculation around where Microstrategy would face a margin call triggering a liquidation of their Bitcoin holdings, this instance is the first time the firm has publicly identified a specific level.

It would take roughly a 42% decrease from current prices to reach the level of $21k. While this may sound far-fetched, it is not unheard of for Bitcoin to rapidly fall 50% or more in short periods. And given the current global political and macroeconomic landscape, this may be more of a possibility than people think. At this point, Microstrategy has become more of a quasi-Bitcoin ETF. Looking at it from this lens, MSTR’s stock has fallen so sharply that it is now back to where it was back in December of 2020. So, if MSTR was a defacto bitcoin ETH, you could say bitcoin was already trading at $20,000.

Market Update
Data as of 05/07/2022 | Past performance not indicative of future returns 

The BTC and MSTR charts show that $20k is a former major BTC resistance point from December 2020 that has not been retested. A retest of that level would liquidate Michael Saylor’s holdings. If and when Michael Saylor gets liquidated, that could bring BTC to the head and shoulders top target of $15,000.

Bottom Line: A purge may be coming in risk assets and crypto. It may be wise to adjust portfolios sooner rather than later.  

Tags: BTCEthereumMarket Navigatormarket overviewPremiumTechnical Analysis
The Token Metrics Team

The Token Metrics Team

Token Metrics is an AI-driven cryptocurrency research and analytics platform.

Related Posts

Sneakerheads, The Possessed NFT | Hidden Gems – NFT
Hidden Gems

Sneakerheads, The Possessed NFT | Hidden Gems – NFT

June 27, 2022
BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse
Gaming and Metaverse

BitCraft Online, Earth from Another Sun | Hidden Gems – Gaming and Metaverse

June 27, 2022
The Next Stage and a Look to the Future | Navigator
Market Analysis

The Next Stage and a Look to the Future | Navigator

June 19, 2022
Next Post
Platypus Finance | Hidden Gems – DeFi

Platypus Finance | Hidden Gems - DeFi

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

COMPANY

  • About Us
  • Contact Us
  • Privacy Policy
  • Sitemap

7600 Chevy Chase Drive, Suite 300, Austin, Texas, 78752, USA
Email: info@tokenmetrics.com | Tel: +1-888-908-6536

DISCLAIMER

Token Metrics Media LLC is a regular publication of information, analysis, and commentary focused especially on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies.

Token Metrics Media LLC does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Token Metrics Advisers LLC registered as an investment adviser or broker-dealer in any jurisdiction.

Information contained herein is not an offer or solicitation to buy, hold, or sell any security. The Token Metrics team has advised and invested in many blockchain companies. A complete list of their advisory roles and current holdings can be viewed here: https://tokenmetrics.com/disclosures/

Token Metrics Media LLC relies on information from various sources believed to be reliable, including clients and third parties, but cannot guarantee the accuracy and completeness of that information. Additionally, Token Metrics Media LLC does not provide tax advice, and investors are encouraged to consult with their personal tax advisors.

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Ratings and price predictions are provided for informational and illustrative purposes, and may not reflect actual future performance.

Copyright © 2022 - Token Metrics - All Rights Reserved

No Result
View All Result
  • Learn
    • Crypto Basics
    • Weekly Performance
  • Market Analysis
    • Market Update
    • Price Prediction
    • Market Navigator
  • Deep Dive
  • Hidden Gems
    • DeFi
    • Gaming and Metaverse
    • NFTs
  • Code Reviews
  • Reports
    • Altcoin Quaterly
    • Moon Awards
    • News and Thought Leadership
  • TV

Copyright © 2022 Token Metrics All Rights Reserved