Decentral Block Post

Solana (SOL) price rallied by approximately 75% two months after bottoming out locally near $25.75, but the token's splendid upside move is at risk of a complete wipeout due to an ominous bearish technical indicator.

A major SOL crash setup surfaces

Dubbed a "head-and-shoulders (H&S)," the pattern appears when the price forms three consecutive peaks atop a common resistance level (called the neckline). Notably, the middle peak (head) comes to be higher than the other two shoulders, which are of almost equal height.

Head and shoulders patterns resolve after the price breaks below their neckline. In doing so, the price falls by as much as the distance between the head's peak and the neckline when measured from the breakdown point, per a rule of technical analysis.

It appears SOL has been forming a similar bearish setup on its longer-timeframe charts.  

On the weekly chart, the token has been forming the right shoulder of the overall pattern, suggesting a correction toward the neckline at $27 during the second half of 2022. Meanwhile, a breakdown below $27 could result in an extended correction toward $2.80.

Solana (SOL) price rallied by approximately 75% two months after bottoming out locally near $25.75, but the token's splendid upside move is at risk of a complete wipeout due to an ominous bearish technical indicator.

A major SOL crash setup surfaces

Dubbed a "head-and-shoulders (H&S)," the pattern appears when the price forms three consecutive peaks atop a common resistance level (called the neckline). Notably, the middle peak (head) comes to be higher than the other two shoulders, which are of almost equal height.

Head and shoulders patterns resolve after the price breaks below their neckline. In doing so, the price falls by as much as the distance between the head's peak and the neckline when measured from the breakdown point, per a rule of technical analysis.

It appears SOL has been forming a similar bearish setup on its longer-timeframe charts.  

On the weekly chart, the token has been forming the right shoulder of the overall pattern, suggesting a correction toward the neckline at $27 during the second half of 2022. Meanwhile, a breakdown below $27 could result in an extended correction toward $2.80.

Bitcoin (BTC) sank to intraday support on Aug. 16 as concerns emerged over the fate of United States stock markets.

U.S. stocks face stiff resistance

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $23,685 on Bitstamp, nearing lows from Aug. 12.

After an eerily calm 24 hours, downside set in at the day's Wall Street open as previous highs in excess of $25,000 looked increasingly like a double top.

Analyzing the potential outcomes, a typically conservative Il Capo of Crypto warned that upside was now highly unlikely given Bitcoin's inability to break out.

"Two options, both bearish," he began a fresh Twitter update on the day by saying.

Bitcoin (BTC) sank to intraday support on Aug. 16 as concerns emerged over the fate of United States stock markets.

U.S. stocks face stiff resistance

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $23,685 on Bitstamp, nearing lows from Aug. 12.

After an eerily calm 24 hours, downside set in at the day's Wall Street open as previous highs in excess of $25,000 looked increasingly like a double top.

Analyzing the potential outcomes, a typically conservative Il Capo of Crypto warned that upside was now highly unlikely given Bitcoin's inability to break out.

"Two options, both bearish," he began a fresh Twitter update on the day by saying.

The market capitalization of Tether (USDT) tokens has increased by nearly $2 billion since the U.S. Treasury Department imposed sanctions on cryptocurrency mixer Tornado Cash.

The Office of Foreign Asset Control essentially barred Americans from using Tornado Cash on Aug. 8, blacklisting 44 USD Coin (USDC) and Ether (ETH) addresses connected to the service to a list of Specially Designated Nationals and Blocked Persons (SDN).

OFAC alleges that Tornado Cash was used by individuals and criminal organizations to launder over $7 billion worth of cryptocurrency since 2019. Funds linked to North Korean Lazarus Group hackers are also believed to have been mixed through Tornado Cash.

Circle, the issuer of stablecoin USDC, went as far as freezing assets linked to the 44 addresses flagged by OFAC. The move by Circle was warranted given the potential ramifications for continuing to interact with the addresses.

Penalties for noncompliance range from fines of $50,000 to $10,000,000 and 10 to 30 years imprisonment. Circle froze 75,000 USDC worth of funds linked to the accounts in question in an effort to be fully compliant with the Treasury ruling.

According to a fresh prediction from crypto analysis firm Arcane Research, miners will continue to sell more BTC than they earn.

Miners sold nearly 30% of record BTC stash since May

The trip to $25,000 this month decreased pressure on a Bitcoin mining sector which has struggled throughout 2022.

At one point, fears abounded that miners’ production cost was far higher than the Bitcoin spot price, and that heavy sales would result in order for miners to stay in business. Worse still, many may have to retire altogether due to their activities no longer being financially viable.

Data from the period since May appeared to confirm that major upheaval was taking place. As Arcane notes, one public miner alone — Core Scientific — sold around 12,000 BTC in the period from May to July.

While the trend showed signs of reversing last month, it will take even higher BTC prices to allow even the largest mining operators to hodl again.