The exchange rate of bitcoin and ether continues to decline – and this is the beginning of the bear market that awaits us. But before we talk to you about the technical picture and determine the future strategy, I would like to say a few words about what kind of decline the Web3 industry is currently experiencing.
In her interview, Randi Zuckerberg stated that the complete decentralization of Web3 has not yet become a reality. It means a system in which users, not companies, own services and data is the basis of a new direction called Web3, on which Meta has made a separate emphasis and, as time shows, has hurried with it.
The sister of Meta CEO Mark Zuckerberg spoke at the Global Supertrends Conference 2022, saying: "Web3 is a hypothetical future version of the Internet based on blockchain technology. But what is happening now is chaos."
Remember that Mark Zuckerberg was one of the first employees of Meta, formerly known as Facebook, who believed in Web3 and various metaverses. However, as the practice has shown, a lot of time should pass before the full integration of Web3 with metaverses. At the moment, everything is built on the principle of a "fenced garden," in which users cannot work with their assets on different platforms.
The metaverse is a virtual world in which people live, work and have fun. With the help of cryptocurrency, users can buy and develop virtual lands or dress up their avatars.
"Right now, I'm in Decentraland, my son is in Roblox, my other son is in Fortnite. It's great— we're all in the metaverse. But we don't interact with each other," Randi said. "To unlock the potential of Web3, we need to develop a system that ensures compatibility." However, according to Zuckerberg, this is easier said than done because no company running the metaverse right now wants to give up control or share its property with others. She added that Web3 requires experts who have been involved in both the global banking system and Web2."
Let me remind you that, according to the latest report presented by the social media giant, its division specializing in the metaverse suffered losses of $ 2.81 billion only in the 2nd quarter. Thus, the losses since the beginning of the year amount to an eye-popping $ 5.77 billion. Facebook Instagram Reality Labs (FRL), which is different from Facebook, Instagram, Messenger, and Whatsapp and focuses on creating the software and content needed to promote Meta to the metaverse, has serious problems. In its earnings report for the second quarter of 2022, FRL generated revenue of $452 million for this period, which is 35% less than in the last quarter. Last year, the division reported a staggering $10.2 billion in annual losses. It is currently on track to exceed this figure in 2022.
Bitcoin collapsed due to the lack of buyers in the $22,660. If there is a further decline in the trading instrument, speculators will certainly defend the nearest support of $21,400, just below which the area of $20,700 passes, and the fall will be lightning fast. In the event of a breakthrough in this area, the $19,966 level will play an equally significant role. Its breakdown will send the trading instrument back to the lows of $19,232 and $18,600. If the demand for bitcoin returns, it is necessary to break above the resistance of $23,180 to build an uptrend. Fixing this range will open up the prospect of returning to the highs of $23,680 and $24,420.
Ether buyers missed the support of $1,820, and now they have serious problems. It will be possible to talk about the resumption of the bullish scenario only after the return of this level under control and consolidation above $1,885, which will open a direct road to $1,950 and $2,030. The $2,146 area will act as a further target. While maintaining pressure on the trading instrument, buyers will likely show themselves at around $1,740, but larger supports are now being viewed at around $1,651.
