After a prolonged dry spell, the cryptocurrency market has rallied in the last 24 hours. This helped to boost the cap trading above $1 trillion. The market for popular crypto tokens such as Bitcoin and Ethereum has been positive, with a surge of as high as 8 percent in the last 24 hours. The total cryptocurrency trading volume over the past 24 hours was $81.3 million. Experts predict that this rally won’t last but that the trend will slowly recover over the coming months. Investors can take a break, at least for the moment.
Although traders are celebrating the BTC price’s surge of 7% to $21,800 analysts believe that the macro downtrend will continue for the foreseeable future. Markets are enjoying a green day against a backdrop of rising US jobless claims, which Jamie Cox, managing director at Harris Financial Group, believes could indicate that wages have reached a peak. Market analysts believe that if this trend continues, financial conditions could become “strained enough for the Federal Reserve to reduce rate hikes”. Analysis of activity on Bitcoin shows that all speculative businesses and market tourists have been removed from the asset. This means that it is mainly long-term investors that are keeping Bitcoin.
Detail of Ether losses: Since December 2020, investors have secured just over 13,000,000 ETH in the Ethereum 2.0 Smart Contract. Unfavourable technical and macro indicators will cause ETH to lose more traction. The weekly average of 32 ETH deposits in Ethereum2.0 has dropped to 122 per days, compared with 500 to 1,000 per daily in 2021. This is a sign of investors’ reluctance in locking in their ETH holdings during a bear market. The main threat to ETH prices remains macro risks, namely the Federal Reserve’s potential July 75 basis point rate increase. Ethereum’s penultimate merger test has been completed on the Sepolia public testingnet. This will pave the way to the Proof-of-Stake consensus mechanism. Although the test was generally deemed successful, there were some issues. In the coming weeks, the final test of the fusion will be performed on the Goerli network before official fusion can take place on Ethereum mainnet.
The U.S. Treasury Department provided President Joe Biden with a framework to enable crypto collaboration between U.S. government agencies and their counterparts overseas. The framework was created to promote the development of digital assets, while also respecting the fundamental democratic principle of the United States, “Values”, and to ensure stability and security in the global financial system. The Indian crypto market is under tremendous pressure. The adverse impact of the recently implemented one percent TDS rule by the government has led to cryptocurrency trading in India being hampered by the current global macro environment. The fact that every cryptocurrency transaction is now taxable means that traders are less inclined to trade. This has resulted in a decline in average trading volume. Experts believe that the dominant market pause is coming to an end.
Technical Outlook
BITCOIN:
Chart for Bitcoin (BTC).
BITCOIN traded a few Doji candles for $19,000 in the early part of this week. The asset then started moving up, reaching a weekly high of $22,527. However, volumes were low. The asset currently trades in the resistance zone (between $22,000 and $23,000). The bulls can push prices higher than $23,000, but if the price resistance is met, it could trade in a range of $19,000 to $28,000. BTC trades sideways between $23,000 and $18,000 over a longer time frame. The trend will be further determined by breakouts on either side.
ETH:
Chart for Ethereum (ETH).
After receiving support at the psychological level $1,000, ETH has begun to rise. It is now in a ‘Higher High High Low’ pattern with low volumes. At $1,275, the asset could face strong resistance. If it maintains the resistance and gives a daily close, then prices can surge to $1,600. It can resist here and we can expect corrections or profit booking. The asset will be supported by $1,000 and $860.
MATIC:
Polygon (Matic), Chart
Matic has created a small “Cup and Handle” pattern, with a neckline of $0.65. If the breakout happens above the neckline in good volumes, then prices can surge to $0.8-$1. If the asset breaches the support level of $0.40, the pattern will fail.
Weekly Snapshot
USD ($)30 Jun 2207 Jul 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$19,784$21,6389.37%$21,784$18,730$22,314$18,966ETH$1,068$1,23815.89%$1,104$1,009$1,263$1,034MATIC$0.42$0.5633.17%$0.62$0.42$0.59$0.45Cryptocurrency1w – % Vol. Change (Global)BitCoin (BTC)-25.13%Ethereum (ETH)-22.44%Polygon (MATIC)-16.37%Resistance 2$28,500$1,550$0.80$0.60Resistance 1$23,000$1,275$0.65$0.45USDBTCETHMATICBATSupport 1$17,500$1,000$0.45$0.33Support 2$16,000$860$0.30$0.25
Market Updates
Celsius, a troubled lending platform, has transferred $528.9 Million worth of Wrapped Bitcoin (wBTC) to crypto exchange FTX. Reddit, a content aggregation and ranking website, announced Thursday that a new, blockchain-backed avatar system was in place. Although no date has been set, the company indicated that avatars would be made available to the public within weeks.
Disclaimer: This report should not be regarded as investment advice. It does not consider the financial situation or investment goals of investors. When deciding whether an investment is right for them, all investors should take into account these factors and consult with a professional advisor. This report was prepared by the Company using information that it has access to, as well as information from public sources that have not been independently verified. The Company makes no representations or warranties, either express or implied, regarding the accuracy, reliability, correctness or completeness of the information, opinions or conclusions contained herein. This report is preliminary. The Company does not assume any obligation to revise or update the reports in response to new events or circumstances after the date of the report was made. Trading and Investments in cryptocurrencies viz. Bitcoin Cash, Ethereum, and other cryptocurrencies are highly speculative investments that are subject to market risk. The Author’s analysis should be used only as information and should not to be considered investment advice.
08th-July-2022 ZebPay.
