Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 27.
Fundamentals and expected events: week 27
Crypto markets: In recent weeks, there has been a targeted crackdown on the entire Chinese cryptocurrency industry. As individual mining farms and pools were forced to stop all their cryptocurrency activities, including mining, there was a significant decline in the computing power involved in mining and transaction verification worldwide. The result of these events is the largest decrease in the difficulty of bitcoin mining to date. Due to that and also the news about Great Britain banning Binance from providing services in the country the cryptomarkets are slightly in red numbers again.
Stock and commodity markets: Stock exchanges were closed on Monday in the USA, this week is expected to be calm. Gold, silver, platinum and palladium are all slightly rising. For the first time since October 2018, the price of Brent crude oil has exceeded $ 77 per barrel. The last time Brent was so expensive was in 2014. The reason for this sharp rise in oil prices on world markets is the collapse of the negotiations between the OPEC cartel and its allies, led by Russia. The world’s leading oil producers have not been able to find a consensus and so far their negotiations failed, due to opposition from the United Arab Emirates. The date of further negotiations has not yet been determined.
Important events: We are expecting FED to publish their decision on a possible tightening of the bond purchase program and an increase in interest rates before the end of 2023 on Wednesday. ECB will publish its decision about its review and readjustment of its 2% inflation target by September on Thursday. At the end of the week, China will release inflation data in the form of consumer price indices (CPI) and producer price indices (CPI). China is facing the highest growth in producer prices in the last thirteen years. There is thus a risk that soaring inflation will affect the rest of the world, which would exacerbate global inflation. There will also be a meeting of G20 states this week.
Cryptomarkets and marketcap: week 27
The total crypto market capitalization reached 1,477 trillion USD on July 6th.
Bitcoin’s price is currently 34,058 USD.
Bitcoin’s dominance is currently 43,2%.
Now the price seems to be moving more interestingly on ETHUSD. We are just in the middle of the 2200 resistance zone breakout, we broke above the price and now there is a pullback to test the 2200 as a support, with 13-19-50EMAs getting close to current price and possibly working as a launch-pad for this breakout to shoot up towards the 3000 long term resistance zone. However we can notice that the volume is decreasing here as well, and breakouts on small volume (lower interest) are very often fake.
KAVA is on my watchlist for this week. Since the beginning of June the price was getting pushed downwards by the descending trendline. However, the touch of the 2,5$ support attracted enough buyers to the market that they managed to break the trendline and kept pushing the price upwards. Now we even managed to break the 4,5 Resistance zone and we have an engulfing candlestick pattern ending the pullback to this level. Engulfing candlestick pattern mean that the most recent bullish candle completely overlaps the previous bearish candle, therefore telling us that the price movement achieved by the sellers in past 4 hours has been significantly reversed to the other direction by buyers, therefore giving us another confluence factor of a bullish breakout and potential continuation of the upwards move.
Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.