Thursday’s Federal Reserve rate hike brought the crypto market to its knees. Market observers believe markets have already priced in the Fed’s rate rise, which the bank had been announcing for more than a week. Powell’s remarks about “no recession”, also supported sentiment. On Thursday, major crypto tokens traded much higher. The total volume of transactions rose by 49 percent to $92.43 billion.
Since July 20, Bitcoin (BTC), has been in a downward channel and is now heading towards the late-July support of $20,000. BTC has fallen 50% year-to date, and US-listed tech stocks as measured by the Nasdaq100 index are down 24%. Bitcoin (BTC), which lost further ground on the Wall Street open July 28, amid confusion about whether the United States has entered a new recession, regained some of its lost ground. Bitcoin (BTC), which gained ground on July 28, was able to consolidate higher after U.S. changes in monetary policy increased optimism about risky assets. Material Indicators, an on-chain analysis resource, noted a “strong long signal”, at the daily close. This was indicating that the short-term bullish case was likely to be amplified. The July 29th open interest for Bitcoin options monthly expiration is $1.76 Billion, but it will likely be lower because bulls were shocked when BTC broke through the $24,000 resistance. July was unable to break through. This reflects $950million of outstanding call interest and $810 million worth of put options.
The September date for the next Ethereum network merger was confirmed by Ethereum network developers. This move prompted traders to heavily invest in ETH. The bulls gained a significant advantage over July’s expiry of $1.26 billion monthly options. This was due to Ether (ETH’s) 53% rally from Jul 13-18. This move was made by Ethereum developers who set a tentative date to “merge,” which is a transition away the cumbersome Proof-of-Work mining mechanism. Analysts believe that Ether will finally reach “ultrasonic” status by eliminating the additional ETH issuance required to finance the energy costs in the traditional mining consensus. Multiple speculations have been sparked by a sudden spike in Ethereum network active addresses, which occurred on July 26. This led to multiple speculations about whether Ether is aiming for its old all-time high. According to reports, the number of active addresses 24/7 surpassed the 2018 high of 718,000. According to data, the main victims of Ether’s remarkable 20% rally on July 27, were leveraged bear trader (shorts), who had liquidated $335 million on derivatives markets.
Risk assets have been negatively affected by the US Federal Reserve’s tightening of economic policy. They raised interest rates and reduced debt purchases to increase their economy. Market analysts anticipate a nominal rate increase of 0.75% from Fed Chair Jerome Powell at the end of a two-day meeting. Tensions in Europe are increasing as Russia’s state-controlled gaz company Gazprom will stop supplies to Nord Stream 1 from July 27. The July 27 technology stock performance contributed to the US Senate’s Chips and Science bill. This bill would provide $52 million in tax- and debt-supported subsidies for the United States. Semiconductor production. The sector will receive another US$24 billion in loans to help boost research and compete with China. The Fed’s announcement is likely to cause mixed emotions among traders. They also fear the potential impact of a global financial crisis on cryptocurrency markets. Investors will continue to seek protection by moving away risky asset classes such as cryptocurrencies, so long as Bitcoin’s correlation is high with traditional markets, especially tech stocks.
Technical Outlook
BITCOIN:
29th July 2022
After hitting a low of $17.567, Bitcoin began consolidating in a wide range between $18,000 and $23,000. The asset experienced three bottoms during this consolidation period. BTC finally broke out of the range, reaching a high of $24,287. After this move, BTC made a Bullish Flag pattern and yesterday it broke out and closed above $23,500 (Horizontal Trendline). BTC reached the $24,287 mark, which was its most recent high. BTC could rally further to $28,500 if it holds above the support level and surpasses the highs of the past.
ETH:
29th July 2022
After hitting $881, ETH traded in a range of $1,000 to $1275. Finally, the asset broke out on the upside and prices soared to $1665. The prices stabilized and saw some profit bookings after this move. The price movement resumed its upwards move after it tested the support ($1,300 and 20-day moving average) ETH trades at $1,700 to $1,750 as its key resistance level. If it holds above these levels, we can expect it will continue to rally to $1950-$2,000.
MATIC:
29th July 2022
Matic created a ‘Cup and Handle’ pattern at the bottom for $0.31, with a neckline of $0.63. It rallied to $0.9849 after breaking above the neckline. The asset saw some profit booking after this move and traded in a “Falling Channel”. Matic created a Hammer Candle at the support (lower channel trendline and day moving average) to start moving up. The psychological level of $1 as well as its 200-Day Moving average are the main resistance points for the asset. If the resistance is broken, then it can rally to $1.20.
Weekly Snapshot
USD ($)21 Jul 2228 Jul 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$23,165$23,8442.93%$23,388$22,431$24,295$20,777ETH$1,472$1,72517.22%$1,595$1,472$1,775$1,363MATIC$0.91$0.943.16%$0.92$0.80$0.99$0.73Cryptocurrency1w – % Vol. Change (Global)BitCoin (BTC)-9.76%Ethereum (ETH)-6.53%Polygon (MATIC)-24.78%Resistance 2$32,500$2,400$1.20$0.60Resistance 1$28,500$2,000$1.00$0.45USDBTCETHMATICBATSupport 1$23,000$1,700$0.75$0.33Support 2$20,000$1,300$0.63$0.25
Market Updates
Federal investigation is underway into cryptocurrency exchange Kraken for possible violations of US sanctions. It allows users from Iran and other countries to purchase and sell digital tokens.
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 has not been independently verified. The Company makes no representations or warranties, either express or implied, regarding the accuracy, reliability, completeness or reliability of any 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.
29th-July-2022 ZebPay.
