The cryptocurrency wagon traded lower Thursday after a sharp rise over the last few days. Investors decided to withdraw some of their capital following a strong rally. Today’s gains are minimal as most assets are limited in their range. It was a mixture of red and green trying to make a break. Global cryptocurrency market cap fell to $1.02 trillion in 24 hours. However, total cryptocurrency trading volume dropped more than 5 percent, to $96.02 billion. We have seen that there has been a decrease in excessive liquidations and volatility due to institutionalization of cryptocurrencies.
The market structure of BTC (and most altcoins) still shows early signs of a trend reverser despite the July 20 pullback. Bitcoin (BTC), which briefly climbed above $24,000, and altcoins made smart gains on July 20. However, the week’s bullish momentum suffered a short setback due to Tesla’s earnings report showing that the company sold 75% of its BTC positions. Although this week’s sharp rise is encouraging, analysts quickly pointed out that Wall Street’s strong performance is crucial for a sustained recovery. Analysts noted that Bitcoin’s rally was largely macro-driven, and that its correlation with NASDAQ remained at an unprecedented 91%. Bulls from Hibernation are aiming high after Bitcoin’s rally in the last few days. Analysts project a target of $120,000 in 2023. Galaxy Digital CEO Mike Novogratz stated at a Bloomberg conference that Bitcoin could surpass $500,000 within the next five-years. Analysts are still divided about their near-term outlooks and some don’t believe the trend has changed. These traders believe that the current rise in prices is a rebound from the bear markets. Some analysts predict that the upward trend will continue for the near term. According to on-chain data, the rally could reach $27,100. BTC bulls aim for a $235m profit when BTC options expire on July 22. However, a move below $22,000 could jeopardize that goal.
After a week of gains, the ETH price is flat. Analysts recommend a short-term pullback that would be followed in September by a rally when mainnet collapse is expected to occur. The cryptocurrency market saw little price action on July 21, as traders took time to process last week’s gains, and to book gains following the largest recovery rally since June. The Ethereum Merge list has consistently topped the list despite speculation about the reason for the rally. After September 19, a tentative date for the mainnet merger was set, the market rallied faster.
Yahoo Finance reports that Bank of America’s latest survey of fund managers was released on July 19, with the headline “I’m so Bearish, I’m So Bullish” referring to investor pessimism and weak corporate earnings expectations. The report also cites equity allocations at their lowest level since September 2008. They will be able to take advantage of the expiration of the weekly options on July 22nd. After Russian President Vladimir Putin’s confirmation of plans to restore flow to Nord Stream, global macroeconomic tensions were eased on July 20, with Germany reducing its dependence on Russian gas from 55% down to 35% over the last few months.
Chart for Bitcoin (BTC).
After making the $17,567 low, BITCOIN started consolidating and traded in a wide range of $18,000 to $23,000. Finally, the asset broke out of the range and reached a weekly high of $24,287. The bulls were unable to control the grip of the asset, as profit booking occurred at higher levels. Prices dropped to $22,340. BTC trades well above its 20-day Moving Average. It is currently trying to get support between $22,500 and $23,000. If the support holds, then prices can rise to $28,500.
Chart for Ethereum (ETH).
After taking support at $860 (Low on 4th January 2021), ETH began trading sideways in a range of $1,000 to $1275. Finally, the asset broke out above this range and rallied to $1630. It is now consolidating between $1.600 and $1.450 after this move. ETH could face resistance at $1700 (lows of the previous Double Bottom pattern), and there may be profit booking or consolidation at these levels. It can rally upto $1950-$2,000 once it sustains above $1700. $1,300-1,275 will be a strong support.
Chart Polygon (MATIC).
Matic has created a ‘Cup and Handle’ pattern with a neckline of $0.63. The asset has reached $0.984 after a breakout above its neckline. Matic faces resistance at the 200 Day Moving average and psychological level of $1. The asset is currently consolidating and trying make a Bullish Flag pattern. It can break above $0.1 and continue to rise up to $1.20, while $0.75 and $0.60 will provide strong support.
USD ($)15 Jul 2221 Jul 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$20,569$23,16512.62%$21,877$19,689$23,388$22,431ETH$1,192$1,47223.54%$1,229$1,019$1,595$1,472MATIC$0.71$0.9128.24%$0.72$0.53$0.92$0.80Cryptocurrency1w – % Vol. Change (Global)BitCoin (BTC)7.22%Ethereum (ETH)56.64%Polygon (MATIC)80.08%Resistance 2$33,000$1,975$1.20$0.60Resistance 1$28,500$1,700$1.00$0.45USDBTCETHMATICBATSupport 1$23,000$1,275$0.75$0.33Support 2$17,500$1,000$0.60$0.25
A significant portion of Tesla’s stake in Bitcoin was sold. A significant portion of Tesla’s stake in Bitcoin was sold.
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