Bitrue Weekly Market Report: Bitcoin Closed Green in July, What’s Next for August?
Table of Contents:
- Crypto Market Overview
- BTC and ETH Quick Chart Analysis
- News Highlights This Past Week
- Upcoming Events for The Week
Crypto Market Overview
July has been a pretty solid recovery phase for cryptocurrency, as the leading asset Bitcoin gained a total of 18% during the month. For the final week of July the market started to see positive recovery in some projects such as Polkadot, Ethereum Classic, Solana, and a variety of other alt tokens. A not so volatile market is a good environment for investors to bulk up their portfolios again. Cryptocurrency market capitalization also ascended past the $1 Trillion mark after the year low of around $700 Billion during June’s drop after all the negative headlines surrounding insolvency, margin calls, and bank runs.
From a technical perspective, while the US economy is contracting after the back-to-back reported negative GDP, the overall market actually started picking a decent rally to close the month in profit. The Fed also announced a much-anticipated 75-basis points rate hike last week, and the market reacted positively. Moreover, investors are still waiting for more economic numbers to come in that they can use to weigh up their decisions before going back into the market.
BTC and ETH Quick Chart Analysis
BTC 4H Chart
The overall theme for Bitcoin in July is slightly bullish, with the price repeatedly making higher highs and higher lows, while still respecting the ascending price channel since the year bottom at around $17,600. We can say that BTC is currently moving sideways waiting for momentum. The Bitcoin 4-hour chart actually shows a possible retracement back with a forming bearish divergence between the price that makes a higher high while momentum decreases. Price should respect support levels around its moving average to make it a healthy retracement.
The longer the price stays in the channel the higher the chance that BTC will have previously bottomed out. There is a possibility that price may retest to the lows of $20,000 as the level coincides with both the psychological level and current lower band of the price channel. But as long as it shows a promising bounce out of the $20,000, if it ever reaches that level, we might never see June’s low again, at least for the rest of this year.
ETH 4H Chart
Ethereum closes the month of July with more than 50% gain. The last two weeks of July have been incredibly bullish for ETH, with investors optimistic about the upcoming merge roadmap. A lot of positive headlines about the current progress and some successful testnets announced by the project team managed to pump ETH’s price. Fundamentally, Ethereum looks very bullish from the project itself, although there is a chance that macroeconomics could potentially damage its recovery.
From a technical perspective we can see that in the 4-hour chart, ETH is actually bullish on the overall trend since the last two weeks of July, with the 100 EMA line crossing above its 200 EMA line. Recent drops also show that the price is respecting the 200 EMA line as a support followed by an extremely good bounce out of that level. Currently, ETH is showing a bearish divergence with a possibility that the price will retrace back to the $1,450 level as it coincides with both a demand area and the 200 EMA line. As long as Ethereum keeps making higher lows, we will potentially start to see more money flow to ETH.
News Highlight This Week
Polkadot Gains 35% in 5 days, Is $10 Next?
Since the launch in December 2018, Web3 Foundation (W3F), the organization responsible for doling out grants on Polkadot, has received hundreds of applications from projects looking to build in the Polkadot Ecosystem. The foundation has disclosed that roughly around one thousand applications have been submitted, with only 415 projects being approved. This milestone has brought a positive impact to the price of DOT token, with a massive rally of almost 35% gain for the week. At one point the DOT reached $9.21 to end the week session. It has been trading slightly below $9, with $10 a firm possibility if the trend continues.
Until now, Polkadot is still the primary choice for developers that seek scalability and interoperability because of its built-in Parity programming language that can be used for a wide range of projects from wallets, dev tooling, APIs to smart contracts and UI development. This is also supported by the fact that some blockchain developers transition away from Solidity, whose limitations and security issues are an on-going concern for project developers.
ETC Topped as The 19th Biggest Crypto by Market Cap
In the midst of ETH’s merge hot discussion, Ethereum Classic’s sudden surge during the midweek surprised a lot of Ethereum enthusiasts. ETC almost doubled in value in just less than 5 days, it reached the highest level of $45.36 from the weekly session low of $23.11. With this massive rally, Ethereum Classic is back in the top 20 for the biggest cryptocurrencies.
Currently Ethereum Classic is trading above its 200 moving average which is a good sign for a bullish trend, with a lot of buying pressure mounting around the support area of $35, a lot of investors trying not to miss the train. ETC’s robust recovery from the bottom is partly caused by the ETH transition from POW to POS consensus. With Ethereum miners flooding back to mine Ethereum Classic, the network is somehow finding its place again in the hearts of miners and crypto enthusiasts.
Upcoming Events for This Week
- Sustainable Energy Blockchain & Cryptocurrency SEBC 2022 (1st — 3rd August 2022): SEBC 2022 is a forum to discuss critical challenges in the field of blockchain and cryptocurrency.
- BUIDL Asia 2022 (4th — 5th August 2022): BUIDL Asia 2022 is a tech-focused conference and ultimate opportunity to interact among developers, communities, and business across the globe.
- ETH Seoul 2022 (5th- 13th August 2022): ETH Seoul is a festival for builders in the Ethereum ecosystem organized by KryptoSeoul and Dystopia Labs.