Bitcoin has moved around 1,000,000 yen from last week,

hovering near 970,000 yen.

Bitcoin has been trading around that price.

Bitcoin 4-hour chart

Last week, price was converging toward 1,000,000 yen.

There were explanations that it would converge at 1,000,000 yen,

but with it breaking below 1,000,000 yen, the short-term outlook is bearish.

Looking at the 4-hour chart,

the current level is around a support line (red, near a horizontal line).

In the short term, buying on this rebound is expected to be the entry point.

We will also look at the daily chart.

Bitcoin support

is around 900,000 yen.

For those considering increasing their Bitcoin purchases,

this could be one point to watch.

Last week's comment

“If you are thinking of buying Bitcoin,

please refer to the chart's

support line of 900,000 to 940,000 yen as a potential lower point.”

In reality, price has been moving down toward that point.

There is also another lower support line on the daily chart

at 800,000 yen.

If it falls to 800,000 yen,

more buyers are expected to enter.

【There are no negative factors noted for a short-term decline.】

There have been no negatives reported regarding this drop.

There were some reports of selling pressure from wallets of a token called Prosta Token,

but the situation is unclear.

Last week's major topics included

・

・PayPal, a major payments company, and cryptocurrency service news surfaced

・OmiseGO raised 8 billion yen

・SBI launched a cryptocurrency fund. Fundraising starts this summer for mutual funds.

All in all, the tone was positive.

If prices fall a bit more in a bear market,

there are voices wanting to deploy capital.

Because sentiment is positive,

a decrease in price suggests that at some point,

many people are planning to buy.

【Ethereum buying points】

Readers asked about Ethereum buying points.

Regarding buying points

from a medium to long-term perspective,

＊This is part of a paid article

It shows that the support line is a potential point.

…appearing as though

there are several lines,

but when you actually check the chart,

the price highs and lows respond at those price points.

【Leverage trading where selling can also generate profits】

The crypto market experienced a crash in mid-March due to the coronavirus,

and prices rebounded rapidly.

Since then, the market has been in a range.

In a range, selling can also be profitable through leverage trading.

Leverage allows trading with funds borrowed against collateral,

enabling transactions larger than the principal.

However, you can also choose to keep leverage low,

and when the market is falling, you can profit by selling.

A subscriber asked,

“If you use leverage to hold crypto for the medium to long term, what happens?”

A brief explanation followed.

For leverage trading,

leverage essentially means borrowing money to trade,

so there is a fee while you have borrowed funds.

For example, maintenance fees could be 0.03%

In that case,

if you hold for a year,

0.03 × 30 × 12 = 11%

would be charged as a fee.

If you held for one month, it would be about 1%.

So a roughly 1% monthly fee could be acceptable as a trading cost.

Leverage involves borrowing money to trade, so with 2x leverage,

profits are twice the normal amount and losses are twice the normal amount.

This is a characteristic of leverage trading.

Therefore, if you trade at points with a high win rate,

you can efficiently increase profits there.

There is also a possibility to profit from selling even in a downtrend.

This is another feature.

In any case, with leverage trading, you should trade with more room and carefully narrow down your entry and exit points.

Regarding leverage services, there are significant differences in regulation.

Domestic: up to 4x

Overseas: from 100x to 500x

and there are notable regulatory differences.

In overseas crypto exchanges,

many exchanges, including major ones, offer leverage services,

but recently, the exchange called FTX has drawn a lot of attention.

Overseas crypto exchanges

are rife with scams, so caution is needed,

and recently there has also been information about KOINDEX as an exchange.

Be careful, as some who promote this exchange have previously promoted fraudulent exchanges.

Also, most promoters are Japanese.

A simple way to judge is whether it is covered by major crypto media.

Even major media outlets may publish press releases paid by the company, which should be excluded.

Here is the reputation of KOINDEX as information.

https://bitcoin-newstart.com/koindex

Sorry for getting a bit off-topic, but

the exchange currently attracting attention is

FTX.

This is an exchange that handles leverage tokens,

i.e., currencies with built-in leverage from the start,

and its simplicity makes trading easy.

For its own token,FTT is handled,

and it has potential as major US exchange Coinbase began handling it.

【Compound on the rise is now undergoing a cooldown】

The hot topic we reported last week, the cryptocurrency Compound,

has dropped from 35,000 yen to around 25,000 yen.

In price terms, it has stabilized.

Compound is a DeFi platform and

the currency issued on it becomes theCompound.

Compound is a lending and borrowing platform for cryptocurrencies,

currently the interest rate for BAT (Basic Attention Token)lending is the highest at 13% per year.

Last week it was 20%.

Because it was overheated, Compound may settle down in the future.

Currently, BAT's interest rate at 13% is attractive,

but we will monitor changes in interest rates to see what happens.

I also hold BAT, so I would like to deposit BAT and observe.

Even if you deposit BAT, you can withdraw at any time, so there is no particular problem.

Cryptocurrency Market Analysis [June 30 Issue]