This week witnessed a dramatic series of events in the crypto market, in which Elon Musk’s statement that Tesla would stop accepting Bitcoin as a mode of car payments, was only upstaged by his astonishing public spats on Twitter with renowned Bitcoin advocates, such as Michael Saylor and Peter McCormack. The frenzy caused by his statement on Thursday sent crypto markets tanking, and despite a short revival in the subsequent few days, there was significant volatility in the markets on Sunday at the time of his Twitter feuds, just prior to the weekly closing candle. As if this wasn’t enough, Bitcoin then staged a dramatic comeback in the last few hours of the week on Sunday night, rising by over $2500 to close just above the 21 weekly EMA (Exponential Moving Average), which is arguably Bitcoin’s most critical support in the current bull market and also serves as a powerful reference for Bitcoin’s price action in the larger perspective.
As Bitcoin dipped over the past week, so did other cryptocurrencies. Polkadot (DOT) had previously risen to new highs at almost $50, before falling back to the $36-42 support zone, where it is currently trading. Its original bullish price action came on the back of successive pattern breakouts, but it failed to hold above the $42-43 region due to the significant downward movement across the crypto markets.
Despite the disorder in the cryptocurrency markets, Polygon (MATIC) reached new highs at almost $1.89 over the past week and is currently consolidating in the $1.5-1.8 region. Polygon has been on the ascendancy since early January, consistently breaking into new highs after every period of consolidation. Having retraced 50% from its last rise, and after breaking into the top 20 cryptocurrencies in terms of market capitalization, it will seek to continue its trend in harmony with a possible upturn in the crypto markets.
Solana (SOL) has been consolidating and building good market structure since the end of April. Like Polygon, it has been rising since the turn of the year, consistently registering new all-time highs after every bullish pattern breakout. It is currently trading at around $50 and will seek to make more gains in the current crypto market cycle, having retraced about 38.2% in Fibonacci terms from its last price rise which began in April.
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