Bitcoin
Bitcoin lost about 3% over the week, falling from $31,158 at the close of June 30 to $30,169 at the time of this writing. On Thursday, July 6, BTC reached a new high of $31,500 since the beginning of 2023, but it hasn’t managed to keep that high yet.
Source: tradingview.com
In early July, investors received unexpected and mixed macro data from a number of analyst firms, particularly a report from research organization ADP. According to the data presented in the report, there are 497,000 new vacancies in the private sector. This was more than double the projected figure.
In addition, the ISM Services Business Activity Index (PMI) rose 3.6% from 50.3% in May to 53.9%.. This is also higher than the forecast, which was 51.2%.
While the overall news is seemingly positive, investors are wary of a sharp response from the U.S. Federal Reserve (Fed). For example, changes in interest rates, which in the current economic circumstances could plunge the country into a deep recession.
But the behavior of big players in BTC, who continue to build up their positions, is good for the asset. It is a kind of limiting factor: the fall in BTC over the past week was insignificant – only 3%.. This is especially true for holders on the OTC market. According to data presented in the Ark Invest report, the accounts of such market players increased by 60% in the last quarter.
Approximately the same data is reported by analyst firm Glassnode. According to her information, there is an accumulation of bitcoins in the accounts of major players. At the same time the withdrawal of funds from exchanges continues. Experts explain this by the fact that investors continue to have fears about new restrictions on the part of regulators.
From the point of view of technical analysis, the new resistance level is $31,500. Support level – $29,500. The general market sentiment remains bullish with bitcoin trading well above its 50-day moving average (marked in blue).
Source: tradingview.com
The Fear and Greed Index was virtually unchanged for the week. It was 55 compared to 56 seven days ago.. The indicator is still indicative of the prevalence of greed in bitcoin.
Etherium
Like BTC, ether is down more than 3% in seven days. The second most capitalized cryptocurrency in contrast to the first did not show the annual maximum, but was able to reach $ 1,976. This is the highest ETH price since May 6, 2023.
Source: tradingview.com
The main reasons for the decline here are the same as for the first cryptocurrency. The growth was largely due to bids by major players for spot ETFs on bitcoin. The initial euphoria of investors is gone, and now they are frozen in anticipation. In addition, Fed Chairman Jerome Powell mentioned that the rate could be raised twice more before the end of 2023.
In addition, if you look at the ratio of long to short positions on the ether exchanges, the statistics are in favor of a decline. Yes, the difference is small, but it is striking that the sentiment is the same on the 10 largest markets: the bears prevail.
Source: coinglass.com
Also, the TVL indicator, which shows the amount of blocked cryptocurrency in smart contracts, on ether reached its annual low. Apparently, investors are losing interest in the core network due to high transactions and are refocusing their priorities on second-tier solutions.<br
Source: defillama.com
Technically, ethereum remains in a range between $1,800 and $2,000, which serve as support and resistance levels, respectively. A breakthrough of any of them can be a harbinger of the beginning of a trend movement in one direction or the other.
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Source: tradingview.com
Shiba Inu
Shiba Inu showed similar dynamics to bitcoin and ether in the past week, dropping more than 3% from June 30 to July 7. In this case, the number of price decrease sessions was less than when the coin was growing.
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Source: tradingview.com
Interesting statistics about cryptocurrency was recorded by Etherscan portal. More than 0.5 trillion SHIB was transferred from the account of bankrupt cryptocurrency broker Voyager Digital in eight days. All of the transactions were made to unknown accounts that were in no way affiliated with the exchanges, so it is possible that this is what caused the sell-offs observed from July 4 to 6.
The main news about Shiba Inu was the announcement of the launch date of the second-tier blockchain, Shibarium. Cryptocurrency developer Shytoshi Kusama wrote in a blog post that a possible release could take place at the Blockchain Futurist Conference in Toronto in August 2023.
From a technical analysis perspective, the picture in Shiba Inu is bearish. It is likely to fall to the support level of $0.0000065. The resistance level is last week’s high of $0.00000783.
Source: tradingview.com
So, after the positivity brought to the crypto markets by the news of bids from a number of large companies for spot bitcoin ETFs, a slight correction has come. In addition, investors remain wary of harsh action from regulators;
This material and the information in it do not constitute personal or other investment advice. The opinions expressed herein are those of the author, research portals and experts and do not necessarily reflect the views of the company.