Bitrue Weekly Market Report: Bitcoin in Consolidation Mode
Table of Content:
- Crypto Market Overview (July 11th — July 17th)
- BTC and ETH Quick Chart Analysis
- News Highlights This Past Week
- Upcoming Events for The Week
Crypto Market Overview
The Bitcoin market is trading in consolidation mode. It has been trading in an ascending channel since the low of $17,800 in mid-June. Despite a handful of assets and altcoins gaining upside momentum, the overall crypto market has been relatively quiet for these past two weeks. The market’s overall sentiment remains unchanged, with the bears still in the driver’s seat.
The global cryptocurrency market cap is also mirroring the bitcoin current consolidation phase. It has been hovering slightly below the 1 trillion mark since mid-June. The overall trading volume also hasn’t given any clear signal of market sentiment. It seems like the market is preparing for what’s coming ahead from the macro side, especially upcoming results from the Fed and current geopolitical tensions.
BTC and ETH Quick Analysis
BTC 4H Chart
The price of Bitcoin is respecting the price channel between the $19,300 and $23,300 levels. Although the overall market sentiment is still negative, BTC has somehow managed to move further from its year low. The most bearish scenario that the market can take a look at is the 32-day period of price consolidation between the low of BTC in mid-May and the next breakdown in mid-June before making a new year-low of $17,800. We are in a similar market consolidation phase now and the next few days will determine where the market is actually going.
Although technically we are not out of the woods yet, there is a potential bullish scenario that BTC can play around for the coming weeks. We can see that the current price is slowly moving above the 100EMA and right now is trying to pass the 200EMA. As long as the price can respect the 200EMA as their dynamic support, the market can read that as a potential new bull cycle for Bitcoin.
ETH 4H Chart
Ethereum is seeing a roughly 27% weekly gain. That is more than triple from what BTC had for the past week. Beside the good fundamental news that is coming around the upcoming ETH 2.0 and the possible exact date for “The Merge”, from the technical side ETH is showing possible uptrend momentum. The price has managed to break above the channel resistance of $1280 and currently trades around the $1400 price level, way above the 200EMA line. From the technical standpoint, the potential breakout target coincides with the $1670 supply area. With this short-term bullish momentum, ETH needs to maintain its trading level above the 200EMA for quite some time before it can attract more money to flow into the project. Currently the price is headed towards the next resistance level of $1450 and it might retrace back a little bit before it can break above it.
News Highlight This Week
Polygon Selected by Disney Accelerator Program: MATIC Surges 43% in the Past Week
The Walt Disney Company is announcing the development of its crypto project through its new 2022 accelerator program. This year’s Disney Accelerator class is focused on building the future of immersive experience and specializes in technologies such as Augmented Reality (AR), Non-Fungible Tokens (NFTs), and Artificial Intelligence (AI) characters. With such focuses, Polygon (MATIC) is chosen as one of the six participants in the project class. This is due to the MATIC scaling solution that enables the wide scale adoption of decentralized apps on the Ethereum blockchain. Polygon is up nearly 20% 24 hours after the announcement and followed by another 23% for the rest of the week. Although there is big upside potential for the project, current uncertainty in the market can be the only reason that we see for the price to retrace back to its low.
Ethereum’s Shadow Fork 9 Went Live Successfully
Ethereum has more than tripled the gains of Bitcoin in the past week. This favorable market gain is due to the positive news update on “The Merge”. As part of the Ethereum development team’s efforts to test the much-anticipated launch of The Merge, Ethereum’s Shadow Fork 9 went live successfully at 00:00 UTC on July 14th. The 9th shadow fork assessed the feasibility of the updates and releases brought by the Sepolia hard fork testnet. The Shadow Fork allowed these updates to be tested on a “more intensive network”. As for The Merge roadmap, it is expected to happen in September of this year. However, a change in this date is not unlikely. The Goerly testnet is expected to accommodate the final testing phase before the launch.
After the news was released, ETH’s price surged 8% during the first 24 hours and another 20% rise in the following days. This significant upside gain was also caused by a short squeeze from the short seller position that had been liquidated during the volatility.
Upcoming Events for This Week
- GameFi Asia 2022 18th — 21st July 2022: Asia’s Pre-Eminent GameFi Conference 2022. This event is held in Singapore
- EthCC 5 Conference 19th — 21st July 2022: The Ethereum Community Conference (EthCC) is the largest annual European Ethereum event focused on technology and community.
- Sustainable Blockchain Summit 22nd to 23rd July 2022: This event is held in Paris, France
