🧘‍♂️Bitcoin Is Down Because…

Market Meditations | April 25, 2022

Hey Meditators

So… you’re wondering why Bitcoin is down today.

Both the crypto and equities markets are experiencing a sell-off today. Even commodities faced heavy losses, ending their recent resilience. Interestingly, the current risk-off sentiment stems from a factor that has not been at play for a while… renewed coronavirus fears. 

With all the progress regarding vaccinations and all the growth in the economy (which has led to accelerated interest rate hikes), it seemed like we were very much ‘over’ the earlier stages whereby the market panicked over the fear of higher cases and lockdown.

Yet still, there is a renewed coronavirus outbreak in Beijing which has triggered fears of a hard lockdown. China is the world’s second-largest economy and as well as creating nervousness about the virus, disruption in the country also generates fear of global supply chain issues. 

Today’s Meditations: 

  • Bitcoin Technical Analysis
  • Binance Burning At Both Ends
  • Coinbase Stock Plummeting
  • Our Crypto Calendar for the Week 

⏰ Top Headlines

? Hold The Wall


Macro Structure: Previous analysis played out as expected. Move above the 100 Day Moving Average very much looks like a deviation.

Key Support: $36k.

Key Resistance: $45k and 100 Day Moving Average.

Looking Forward: Test of the $36k level is not out of the question. Expect choppy action. Not likely to see a clean path.

? Burning at Both Ends

Ethereum isn’t the only token doubling as a fire hazard these days. It’s easy to forget about Binance Smart Chain’s BNB coin, even though it’s comfortably sitting in 4th place by market cap, trailing only BTC, ETH and USDT. Binance may owe part of its sustained success to the fires of industry.

  • $BNB is the cryptocurrency issued by Binance, the largest crypto exchange in the world. BEP-95 is the Binance Evolution Proposal that introduced a real-time burning mechanism to Binance Smart Chain.
  • Launched in 2017 via ICO, BNB is used throughout the Binance ecosystem, like how Ethereum uses ETH for virtually everything on its own.
  • Binance dedicates some of its quarterly revenue to purchasing and burning tokens to remove them from circulation. This has a positive influence on maintaining, or even raising, the price of its coin.
  • Over 37 million BNB has been taken out of circulation using its burning mechanism, and the community aims to reduce the total circulating supply by half.
  • Binance announced last Thursday that to comply with the EU’s restrictive measures against Russia, they now require residents and entities in Russia holding assets worth more than 10,000 EUR must complete proof-of-address verification.

During sideways or otherwise unexciting stretches in the market, it’s important to seize opportunities and focus on fundamentals. Binance has a strong foundation and broad user base too big to be ignored.

? Coinbase Stock Plummeting

Coinbase launched its NFT marketplace in beta last week. This appeared to be something positive for Coinbase, but their stock price tells a different story. Let’s take a closer look at Coinbase to see why their stock price is falling.

  • Two days after the beta version of their NFT marketplace, Coinbase’s stock fell to an all-time low last Friday ($131.25).
  • At this point, everyone can access the marketplace but with only the beta launch in place, only a few select clients can buy and sell the Ethereum-based NFTs.
  • The question at this point remains whether or not Coinbase will be able to scale the marketplace and compete with OpenSea and others.
  • Coinbase has also announced plans to acquire BtcTurk for almost $3.2 billion. But why is the stock going down?
  • Once the marketplace is fully available to everyone we may see a positive change in [stock] price.
  • Research analyst, John Todaro, says that the stock’s performance is also reflected in the broader market. He pointed out that interest rates have impacted tech stocks in general and that, more specifically, retail crypto and trading volumes have been down.

While stock price can be a good indication of how well a company is doing, we must also note that Coinbase is playing the long game.

Monday, 25 April

  • ?Celer Network Listing

    KuCoin launches the CELR/USDT pairing with deposits already underway (ERC20) and trading beginning at 8 AM UTC on 25 April.

  • ?Aurora Network Listing

    $AURORA gets listed with KuCoin in a USDT pairing at 10 AM UTC today with deposits already open using the ERC20 network.

Tuesday, 26 April

  • ?Harmony One Panel 

    Harmony One will be hosting a panel in Accra, Ghana to share its vision with a group of experts and influential tech enthusiasts in the region to build interest in Africa.

Wednesday, 27 April

  • ?️Secret Upgrade

    Shockwave Alpha, the next mainnet upgrade on Secret network bringing a “500x performance improvement”, is scheduled to launch today. The goal was announced on Twitter on 5 April and appears to be on target.

Thursday, 28 April

  • ?Theta Network AMA

    Tune in to the Theta Network AMA featuring CEO Mitch Liu, CTO Jieyi Long, and Head of Strategy Wes Levitt at 4 PM PT. The event will be streamed on THETAtv and hosted by the community-run Theta Research Squad.

  1. Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
  2. Read the following Technical Analysis guides for more insight:
    1. Moving Averages 
    2. Fibonacci Retracement  
    3. Volume and Open Interest  

? Did you enjoy today’s newsletter? This survey is your chance to tell us how we can improve the product for you. Link here.

??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your research when making a decision. See our important security disclaimers here.

Disclosure. Some of the links we’ve included are affiliates, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.