With a market capitalization around $933 billion, the crypto market trades in red. On Thursday, crypto tokens traded mixed. Bitcoin managed to recover the $20,000 mark despite the US’s hot inflation data. This is a crucial psychological level. As expected, the Federal Reserve would tighten monetary conditions to reduce consumer price inflation by increasing its stance on high inflation in the US in June. The crypto wagon traded mixed with Bitcoin, Ethereum and XRP. Stablecoins saw slight gains. Dogecoin and Shiba Inu were two of the tokens that were in red.
The Bitcoin rate saw a brief pull-back following the July 13th excessive inflation print. However, the rebound in BTC (and altcoins) shows that customers are looking for the dip. Bitcoin (BTC), which prevented losses when US equities fell at the Wall Street open on July 14, however, buyers were still nervous. The bears had the opportunity to make a $100 million profit by selling options that expire this week, despite bitcoin failing to surpass $22,000 on July 8. BTC traders prefer a sharp price correction followed by a recovery to linger below $24,000 for many months. BTC has been struggling to break the $22,000 resistance since June 14. Most traders are holding off on their bullish expectations until BTC reaches a daily close of above $24,000. Investors’ prospects for digital assets are affected by events outside the crypto market. On July 14, Janet Yellen, US Treasury Secretary, warned that inflation is “unacceptably high”. She also supported the Federal Reserve efforts. When asked about the effects of rising interest rates on economic growth, Yellen admitted to the possibility of a recession. JPMorgan Chase also reported a 28% drop in profit year-over-year despite flat sales. This is mainly due to $1.1 billion in credit losses provision, which was caused by a “slightly deterioration” of the economic outlook. Investors fear that a possible crisis in the global financial system will lead to a retest at $17,600 on June 18, which is the highest correlation Bitcoin has with the S & P 500.
The macroeconomic perspective shows that the US CPI rose 9.1% to June, exceeding expectations of an 8.8% increase year-on-year. Fed funds futures point to an 81-basis point rate increase for July. This suggests that some participants expect a 100-basis point hike. Many on-chain indicators point to Bitcoin’s bottom, but analysts from market research firm Glassnode doubt that it is. According to The Week On-Chain report dated July 11, analysts stated that the market might need to drop further to “test investor resolve” and allow the market form a resilient bottom.
Technical Outlook
BITCOIN:
Chart for Bitcoin (BTC).
BITCOIN trades sideways within a range. It is forming a Symmetrical Triangle’ pattern on a daily basis. It has formed a pair of Doji candles at support (ascending triangle trendline) and again at resistance (descending triangle trendline) which indicates indecision in the trend. BTC is very strong at $23,000, and $17.500 will be strong support. If the breakout happens above $23,000 and with high volumes, we can expect it further to surge to $28k levels. A break below 17,500 would lead to further decline.
ETH:
Chart for Ethereum (ETH).
After receiving support at the psychological level $1,000, ETH has begun to rise. However, it is forming a Higher High Higher Low’ pattern with low volumes. The bulls failed to push prices higher than the $1,275 resistance level and the price dropped to $1,000. The asset is currently consolidating and trading in a range of $1,000 to $1275 on a daily basis. The trend will be further determined by breakouts that occur on either side of this range and good volumes.
MATIC:
Chart Polygon (MATIC).
Matic has created a small “Cup and Handle” pattern with a neckline $0.63. The asset has shown a breakout above its neckline and rallied to $0.735. Matic may encounter minor resistance at $0.75, and can retest support at $0.63 (Neckline). It can surge to $1 if it holds above $0.75, while a break below $0.6 can cause prices to drop to $0.45.
Weekly Snapshot
USD ($)07 Jul 2215 Jul 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$21,638$20,569-4.94%$22,314$18,966$21,877$19,689ETH$1,238$1,192-3.72%$1,263$1,034$1,229$1,019MATIC$0.56$0.7125.80%$0.59$0.45$0.72$0.53Cryptocurrency1w – % Vol. Change (Global)Bitcoin (BTC)35.62%Ethereum (ETH)0.31%Polygon (MATIC)32.13%Resistance 2$28,500$1,550$1.00$0.60Resistance 1$23,000$1,275$0.75$0.45USDBTCETHMATICBATSupport 1$17,500$1,000$0.60$0.33Support 2$16,000$860$0.40$0.25
Market Updates
As mining hardware improves, the cost of mining Bitcoin (BTC), has fallen to a ten-month low. Additionally, difficulty has dropped 6.7% from its May peak. DappBay is a new platform by BNB Chain to help users discover Web3 projects. DappBay has a new feature called Red Alarm that assesses project risks in real-time and alerts users about potentially dangerous decentralised applications. One CryptoPunk sold for over $2.6 million, a staggering 2,500 Ether (ETH).
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 be considered investment advice.
15th-July-2022 ZebPay.
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