Is Bitcoin ready to continue its growth?
Over the weekend, the bitcoin rate continued to grow and by Monday morning it crossed the $22.3 thousand mark. At the time of writing, the first cryptocurrency is trading at the level of $22.524 thousand, it has risen in price by 3% in the past day, and by 8.7% in the week. You can watch and learn bitcoin movements with bitcoin360ai.com
Experts told what caused the latest market movements, and what dynamics to expect in the coming week.
“Following the American indices”
The incomplete week from July 11 to 15 was not easy. In the first half of the week, the BTC/USDT pair fell to $18,900. The decline began on July 10 and intensified on Monday amid a sell-off in US stocks. Investors “went into cash” ahead of the release of important inflation data and the start of the second quarter reporting season in the US. Risk appetite also decreased due to the increase in the number of coronavirus patients in China.
The downtrend intensified on Tuesday amid a rally in the dollar and declines in the S&P500 and Nasdaq. The dollar index renewed a multi-year high amid the collapse of the euro. The dollar exchange rate reached parity with the euro exchange rate. Sellers sold off the single currency due to the energy crisis and problems in the manufacturing sector.
On Wednesday, the situation stabilized after multidirectional fluctuations. Sharp fluctuations were caused by the report on inflation in the US for June. Buyers were able to defend the $20,000 level and close the day at $20,234. US inflation data fueled fears that the Fed could raise key interest rates by 100 basis points this month.
After the statistics, the S&P500 and Nasdaq indexes fell but recovered some of their losses. The market didn’t collapse as two Fed officials said they favored a July rate hike of 75 basis points, not 100 bps. This reduced the likelihood of a more aggressive move on the latest inflation data. To increase by 75 b. the market is ready.
On Thursday, buyers took advantage of the correction of the dollar and the weak increase in indices. The BTC/USDT pair recovered to $20.9k. On Friday, the price recovered to $21k on US indices. The situation did not change during the day.
The market is controlled by sellers. BTC hash rate down 27% to 159.41 EH/s due to miners shut down in Texas. For miners and the market, this is a bearish signal. Investors, as before, fear a collapse to the range of $10-$13 thousand.
From the point of view of technical analysis, in order to level the “bearish” mood after conquering the $22 thousand mark, buyers need to pass the level of $23.5 thousand. The faster it is passed, the higher the probability of recovery to $26.5 thousand.
“The price is actively testing the upper edge”
The idea of short positions from the zone of $22.5-$23 thousand worked. Last week, the price continued to move within a large horizontal channel.
The bulls managed to break through the inclined trend line inside the channel. Next week, we will observe the approach of the price to the upper edge of the channel and will already try to work for a breakthrough. This will be the third touch: the more touches, the higher the probability of breakdown.
In addition, the Ethereum chart speaks for the bullish mood. A very similar channel has formed there and the price is actively testing the upper edge. We are very close to breaking through. Ethereum should attract the rest of the market.