Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 28.
Fundamentals and expected events: week 28
Crypto markets: Volume trading remained low again over the last week, but Bitcoin jumped more than $ 1,000 a day to a maximum of around $ 34,700. Altcoins also bounced. Nevertheless, the Fear and Greed index fell into extreme fear again at 20 points over the weekend, followed by 25 points on Monday. So far, crypto markets have been copying the scenario for the last two weeks, when trading volumes reached several monthly lows.
Stock and commodity markets: Wall Street erased the previous slump at the end of the week and the indices climbed again to new historical highs. Investors have seized the downturn in markets due to fears of slowing US and global economic growth as buying opportunities. The markets thus recorded their sixth week of growth in a row. The price of oil responded to the highest demand for gasoline during the summer season in history and also rose. Gold is still holding around $ 1,800 / ounce.
Important events: Globally, fears of coronavirus and possible new economic closures are growing again due to the delta mutation. The Olympic Games will begin in Japan this month, but they will probably have to do without spectators. EU finance ministers are meeting. Major macro data from the United Kingdom, the United States, China and Japan is expected during the week, as well as a commentary from Fed Chairman Jerome Powell.
Cryptomarkets and marketcap: week 28
The total crypto market capitalization reached 1,447 trillion USD on July 12th.
Bitcoin’s price is currently 33,749 USD.
Bitcoin’s dominance is currently 43,7%.
We are still moving in the 42K Resistance and 30K Support range for the BTC. What we can notie that this range is continuously getting smaller and smaller and price keeps accumulating in very tight range now. And no one likes small ranges, because there is not much money to make in them for the big players, so eventually it will break. There is also a rule that the longer the price accumulates and moves within the range, the bigger the breakout tends to be and the more power will be behind it since everyone is just sitting on the side with their money ready to place it on longs in case of a breakout upwards, or shorts in case of breakdown in downwards direction.
What we see here is very similar to the BTC situation. That is natural since ETH and BTC are highly correlated most of the time. Those who remember our analysis from past weeks know that there was an expected breakout of the 2200$ price area that could move price upwards all the way to the 3000 area-support of the wide range. However that didn’t happen, we broke 2200 and the price went nowhere, just sits and waits around this zone. This is not natural, normally breakouts create big moves. So what this communicates to us that there is just no conviction from market players to put money on anything till BTC starts to move in some significant direction.
XRP seems to be in trouble, we saw break of the 1$ support, then break of the 0,75$. Notice what is happening right before this breakdown of the 0,75$ support – the range that was in the range between 1$ and 0,75$ was being pushed by the descending trendline and then the breakdown happened. It seems like the same thing is happening now. We are in the 0,75$ and 0,6$ range and the price is being pushed downwards with a descending trendline, is there more downside to be explored? We will see in upcoming week.
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.