BTC Accumulation Behaviors Falter; Azuki Collection Crashes After Blog Post

Chart of the Day





On Tuesday, the broader crypto market sank even further amidst a massive sell-off within the traditional financial markets that was triggered by the U.S. Federal Reserve's hawkish monetary tightening policies, and the fears of a looming recession. This bearish momentum has pushed BTC below the critical $30k support level for the first time since July of 2021. After this recent decline, BTC is now more than 55% down from its historical all-time high price of $69k.  As of the time of writing, BTC is consolidating its losses above the $31k level after shedding 5.8% of its market value in the last 24 hours. A major bearish trendline with the upper bound sitting near the $32k level is also forming on BTC's hourly chart. In some better news, a short recovery wave might kick off if BTC's price can break above said resistance level. On the flip side, there is also a chance that the extant bearish momentum will bring BTC down even further to test the support levels within the $28k-$29.5k zone. 

The on-chain accumulation score suggests that wallets across all cohorts (from minnows to whales) seem to have softened their BTC accumulation behaviors. Entities with wallet balances of more than 10k have significantly tapered their purchases, and have in fact even become a major distributive force in the past few weeks. Small retail traders are showing more conviction than some of the more seasoned players within the space, but their accumulation patterns have also become notably weaker than it was when compared to Q1 of this year. 

As paranoia continues to plague BTC holders, ETH and other major altcoins have also been impacted. ETH is currently struggling to stay above the $2,400 level after posting a 3% loss overnight. Most major altcoins also experienced double-digit percentage declines from 24 hours ago, with LUNA shedding more than 50% of its market value after its stablecoin UST lost the dollar peg for the second time in 48 hours. 





Talk of the Town





Whilst everyone else was busy lamenting BTC's decline and UST's depegging, a group of NFT enthusiasts were hosting a controversial Twitter Space satirically titled "The Death of Azuki". The bold statement follows the release of a blog post from Zagabond, the pseudonymous founder of Azuki, who shared in his article that he was previously involved in several mediocre NFT projects that many on-chain sleuths consider as rug-pulls. Although Zagabond has since denied all the rug-pull allegations that were levied against his past projects, the Azuki collection's floor price has still tumbled by a whopping 48% in a mere matter of hours after the release of the blog post.