Bitcoin
The week passed for bitcoin in the negative. The drop amounted to 1.6%. That said, trading on the week was accompanied by relatively small volumes compared to the up June 15-23 period.
Source: tradingview.com
The slight decline on the week can be attributed to the anticipation of the U.S. counterpart of the central bank’s key rate decision.
In addition, lawmakers continue to tighten the screws. On Thursday, Congress began considering
The Financial Innovation and Technology for the 21st Century Act, a 212-page document called the Financial Innovation and Technology for the 21st Century Act. The document introduces new concepts regarding cryptocurrency, as well as defines the mandatory registration of crypto exchanges and other intermediaries with both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In terms of technical analysis, bitcoin has been in a sideways pattern for a month now, showing little volatility. The upper boundary at $31 800 is resistance and the lower boundary at $29 500 is support.
Source: tradingview.com
The fear and greed index moved into the
It stands at 50, down 10 points from a week ago.
Ethereum
The week for Etherium was the same as for bitcoin – in the minus zone. The drop amounted to about 2.3%. Only two of the seven days saw an increase. Ether failed to gain a foothold above $2 000, falling in price below $1 900.
Source: tradingview.com
While the week was neutral, even with a slight negative tinge, many continue to believe in the rise of the world’s second most capitalized cryptocurrency. Analysts at Blofin presented three scenarios for what the price of etherium will be in 2024.
According to experts, the cost will be influenced by the following factors: network profitability, the upcoming Cancun update, investor expectations based on the cryptocurrency’s price-to-earnings ratio. In an optimistic scenario, ether will be worth $5 300 by early 2024 and $9 700 by the end of the first quarter. Under the neutral scenario, the figures would be $2 150 and $3 200 respectively. According to pessimistic
estimates, the price of ether will be $2 050 at the start of 2024 and $2 700 at the end of the first quarter.
As you can see from the data above, even in the worst case scenario, ether should grow by 8%+ over the current price. And in the most favorable scenario, the growth would be more than fivefold.
At the same time, in the short term, etherium can expect a decline. In particular, this can be attributed to the sell-offs of the big players (whales). Recently, one of them transferred more than 61 000 ETH to the Kraken exchange. Prior to that, the wallet had been inactive for eight years. It’s likely that the transfer took place for the sake of a sale.
In terms of technical analysis Efirium is in a narrow range between $1 870 and $1 940, which are support and resistance levels respectively. A breakout of one of them could lead to further rises or falls.
Source: tradingview.com
Avalanche
For the week of July 14-21, 2023, the price of Avalanche fell 4.76%. Nearly all of the decline occurred on two days: Sunday, July 16, when the price fell 3.69% and Tuesday, July 18, when the decline was 4.07%.
Source: tradingview.com
While Avalanche is far from the 2023 highs it hit in February (over $23), and in June it hit an all-time low of $10.5, the platform itself is clearly doing quite well. At least that’s what a report published by analytics platform Messari hints at. It reflects Avalanche’s performance in the second quarter of 2023.
Most impressive is earnings growth compared to the same period in 2022. It was over 170% in AVAX and over 150% in dollars. In addition, the C-Chain responsible for the smart contracts in Avalanche is clearly in demand by consumers. The average number of active addresses on it rose by 132.1% and the average number of transactions per day rose by 162.2%.
In addition,
Avalanche’s Nakamoto coefficient, which measures the degree of blockchain decentralization, was 31 (currently 25), which is above the crypto industry average.
Avalanche is locally declining on technical analysis. However, globally the trend is upward. From June 10 to July 14, the coin added more than 50 percent. A bullish signal is when the price is above the 50-day moving average (marked in orange). Current support level is $13.7 and resistance level is around $16:
Source: tradingview.com
In other words, cryptocurrencies were amicably in the negative this week. At the same time decrease was relatively small. The main reasons for the dynamics are considered to be investors’ expectation of the Fed meeting, as well as the movement of large volumes of cryptocurrency to trading floors by whales.
This material and the information in it does not constitute individual or other investment advice. The opinions of the editorial staff may not coincide with those of the author, analytical portals and experts.