Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 29.
Fundamentals and expected events: week 29
Crypto markets: Bitcoin price ended the week down by around 6% and trading near the 31,500 USD price level, while the 2nd largest asset, Ethereum ETH fell by around 11%. Most large-cap altcoins dropped sharply alongside Bitcoin last week. This unexciting, predictable price action appears to have driven retail interest temporarily away from crypto markets. According to Bloomberg, as consumer prices skyrocket, the digital currencies will have a chance to prove if it is a true hedge against inflation.
Stock and commodity markets: Last week, fears began to spread in the markets that the economic recovery would slow down at the turn of the half. Low-cap companies paid the most for this concern. Powell continues to say that inflation will be only temporary and that the Fed will continue to support the economy at its current rate, in spite of the inflation rate in the U.S. reaching highest levels since 2008. Low bond yields are likely to continue to force investors to look for opportunities in the stock market. Gold is slightly rising, but still under 2 000 USD per ounce.
Important events: In the U.S., speculations about american Fed monetary policy are increasing, the US Congress will try to push as much as possible of Biden’s aid package before the August holidays. In the euro area, important indicators will be published. Consumer confidence probably increased slightly further in July, as did PMI in services. Thursday’s meeting of the European Central Bank is expeced to set a dovish tone. The ECB will try to convince the markets that it still has to be patient and not take any harsh steps. On Tuesday and Thursday this week Paris will host the 4th annual Ethereum Community Conference (ECC). EthCC is the largest annual European Ethereum event focused on technology and community.
Cryptomarkets and marketcap: week 29
The total crypto market capitalization reached 1,338 trillion USD on July 19th.
Bitcoin’s price is currently 31,850 USD.
Bitcoin’s dominance is currently 44,6%.
Price is still moving in the 42K Resistance and 30K Support range in the past week, with increasing pressure on the 30K support. We can see that the price moves created by the touches of this support zone are getting smaller and smaller, the decreasing highs are even following the descending trendline towards the bottom of the range. This tells us that less and less buyers are considering 30K area a good buying opportunity, and structure of the price suggests that there is a possible breakdown coming.
We can see big bearish pressure and signs of continuation of a bearish trend on ETH as well as on BTC. The price is being pressed downwards by a descending trendline in confluence with rejections of the 50 Moving average. When we observe the volume we can see that even though we are at very important support zone, there is no influx of buyers happening right now, so all the signs are pointing to the continuation of the bearish trend.
This week it was almost impossible to find a solid coin that is not facing a huge sell off. Even one of the great projects, RUNE that was valued around 21$ in may is now getting close to 4$ value, therefore now price needs to grow more than 400% to get back to all time high. This tells us that the coins like PLTC that are not facing a downfall like others have solid ecosystem that is not solely dependent on the market sentiment around cryptos, but has real value in their use as payment or investment tool.
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.