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- Crypto Finishing The Month Strong, Can It Hold? | Daily News 27/6/22
Crypto Finishing The Month Strong, Can It Hold? | Daily News 27/6/22
Crypto this week 🗓️ has been fairly productive, attempting a strong relief rally despite a bit of downwards pressure yesterday. Bitcoin produced a pretty good recovery upwards 📈, however, it was the altcoin market that really took the limelight with some alts really rising up sharply. Which goes to show that investors and traders are taking advantage of the recent dips in the market as a whole and further accumulating their positions! 💰
💹 Of course, with the crypto market being correlated with the equity market, we saw U.S. equities hitting back with sharp rises also ⤴️. The Nasdaq closed the week on Friday about 7% up and the S&P 500 closed about 6.5% up.
Can Bitcoin and the rest of the altcoin market keep this momentum going, proving that we truly did hit a bottom 🍑 about 10 days ago? Or is this simply a bull trap? Let's dive in in more detail! 🔍
Bitcoin is currently over 🟢 $21,200 as of writing, after a decent rally from that psychological resistance level of $20K, which many were keeping sharp eyes on last week. Since then, BTC has been climbing steadily 🧗 until it reached almost $21,900 midday yesterday. From that point, the momentum got rejected and the bears took control, with the price declining to just past that important 100-day moving average.
More upwards momentum as you can see here on our BTC/USD hourly chart. Will we hold over the 100 Moving Average?
BTC has bounced from there which is what is needed to keep that bullish momentum 🐂 and is now hovering around the key support level of $21,200. If BTC can keep this momentum going, the next key resistance we want to see break would be $21,800 again.
However, if we start to see Bitcoin break lower, we need to see the 100-day moving average break 💔 to confirm if the bears have control and that the selling pressure is back.
Pushing TA aside, it's very interesting to see the chart by Glassnode below, showing the number of addresses holding at least 1 Bitcoin. We can see 👀 that it is still steadily increasing and is now at almost 870,000 addresses, 🥳 an all-time high. This proves that many investors in the market have used this opportunity of 🏷️ ‘low prices’ to accumulate their bags and hold at least 1 Bitcoin. Only just a few months ago, this seemed like an almost impossible feat to some when BTC was at $60K plus; but now many more are grabbing the opportunity they see in front of them as it has become more affordable to join the ‘1 Bitcoin Club’. 🎩🧐♣️
*The number of addresses holding at least 1 Bitcoin is at all-time highs! *
Ethereum, the 2nd 🥈 largest crypto by market cap, has mostly remained above the $1200 key resistance point; only dipping under twice over the last few days momentarily. ETH is outperforming BTC and is up 🟢 over 12% in the last 7 days as opposed to BTC’s 0.5%! As of writing, Ether is trading above $1220, keeping its head above the resistance level and above the 100-day moving average. Overall, starting the week with a good outlook so far. If ETH can keep its momentum, then further upside to around $1320-$1440 is on the cards. However, just like Bitcoin, eyes are on the resistance level and Moving Average; and if it were to break, we could expect to see a retest of $1000 once again!
The ETH/USD chart on the 1hr timeframe, started the week strong but the overall outlook remains to be seen.
As for the Altcoin market, Alts this weekend surged up with the popular meme coin Dogecoin (DOGE) 🐕🦺 leading the charge which is currently the best performing Alt in CoinMarketCap’s top 50, with a 13% positive increase 🟢 in the last 24 hours! Polygon (MATIC) also did very well last week in general increasing to over 90% that week, which leads to its biggest increase 🔝 in 7 days of over 55%, even though it has dropped slightly since last Friday. This pump was due to announcing 📰 and launching a new privacy product for DAO’s.
🟢 The Sandbox (SAND) has also done well with over 50% positive price increase in 7 days but cooling off over the weekend. This was connected to the rumour mill 🗣️ of Zuckerberg’s Meta ♾️ (Facebook) potentially taking over SAND. However, COO and co-founder of SAND Sebastien Borget said a brief and strong “This Will Never Happen”, and not for the first time! Could we be at the verge of a big tech giant takeover 🤴, leading the metaverse and cryptocurrency market 🚀 skyrocketing?
💹 As we mentioned in the opening of today’s blog, crypto’s performance has mirrored equity markets with the S&P, Nasdaq and DOW all closing the week up with an average of about ⬆️ 5%.
📖 There are quite a few reports and testimonies this week to keep an eye out for on a global 🌎 scale, which we will post for you to add to your diaries a bit later on. One of the most prominent and awaited this week will be the widely-regarded monthly core Consumer Price Index (CPI). The CPI is the Federal Reserve's primary inflation measure which will give us insight into consumer spending behaviour. Also, the Purchasing Managers Index (PMI) for manufacturing is also another one investors are keeping keen eyes 👀 on as it is a leading indicator of economic health.
👁️🗨️ It will be easier to see, depending on the outcomes and results of this week's upcoming reports and testimonies, how Bitcoin and the cryptocurrency market will perform. It is certainly good that Bitcoin is still holding strong above the $20K level 👍 but it is possible that we could re-test the $17-18K lows if reports are generally pessimistic and negative 😧 for the global economy. Let's see how the week pans out!
Summary:
- The crypto markets closing the week strong, how will it close the month?
- The equities markets also closed the week well, this week's announcements are what investors are keeping keen eyes on.
- Dogecoin (DOGE) led the altcoin charge over the weekend, but arguably the bigger news is a possible tech giant taking over The Sandbox (SAND).
- Plenty of reports and testimonies on the way this week to determine the severity of inflation in the global economy.
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