The Crypto Rally Continues To A New Week | Daily News 18/7/22

📈 A good weekend for cryptocurrencies overall, with the total crypto market cap hitting $1 trillion. We saw Bitcoin hit highs of $21,670 just two days ago and has now surged ⤴️ to just under $22,300. However, Bitcoin’s 4-day streak in the green was halted on Sunday, dipping its price below $21K.

As we mentioned in our previous market analysis video just a few days ago about the range BTC is in, if you zoom out you can see Bitcoin is now just peaking above the range that it has been in for a month or so (more on this in tomorrow’s YouTube Market Analysis!). 😶‍🌫️

We also saw equities markets close the day in the green 🟢 last Friday, up by 1.9% and the Nasdaq 1.7%, regaining some of the losses that were made earlier in the week amongst some encouraging signs that the global economy may not be imploding any time soon.

Let's look in more detail 👇

King of the crypto hill, 👑 Bitcoin (BTC) had a great green week 🟢 last week in general, really holding up that buy pressure from the bulls as from last Wednesday at its weekly low of under $19K, it increased steadily to almost $22K! We saw consecutive daily green candles with the price increase, all until yesterday where we saw Bitcoin do a small reversal to back under $21K.

As of writing though, Bitcoin is now up 📈 almost 5% in the last 24 hours, currently trading at just over $22,240. BTC is on the cusp, trading just over that range of 18K - $22K, and it could be fairly tough to break out further while investors are waiting to see if the central banks can beat inflation, without the doom of a recession! But it is certainly good to see Bitcoin hold so strong even though we saw economic data 📋 and a not-so-well received inflation report that affected stocks and other markets!

The hourly BTC/USDT chart shows more upside price action, breaking above the bullish trend line and over the 100 MA.

As you can see in the ☝️ chart above, Bitcoin is now climbing higher over $22K and back above our bullish trend line and the 100 day moving average. From its decline yesterday, price literally puckered up 💋 to the 100 MA (yellow line) and bounced straight back off of it. To continue to see this bullish movement for BTC, we need to maintain this direction and pressure and of course, maintain above $22K for as long as possible. From there, price would need to re-test $22K and bounce to be an ideal bullish scenario. 👌

Of course, as we always mention; we have to look at ↕️ both sides of the coin. If we are to follow the same consolidation pattern BTC has been in for over a month now, then we can expect to see a test of around $22K, but then see the bears take charge and see price tumble downward again ⤵️. The first support line traders will be eyeing up is the $21,200 and of course the 100-MA. 🕵 On Saturday, we saw an interesting twitter post from Glassnode (On-chain Analytical Data Provider) which stated that the majority of the BTC coin supply is dormant, showing that holders are increasingly unwilling to spend their BTC at lower prices which resembles previous market bottoms 🍑.

The tweet from Glassnode shows how recent HODL Waves data resembles previous bear market bottoms.

Finally, it is worth mentioning here that we do have some economic events 📋 and forecasts coming up which we’ll go into detail with what is happening this week on our regular Monday ‘Weekly Events and Forecasts’ blog. However, next week is where we have bigger news 👀 and announcements coming so we can expect to see even more movement in the markets then.

🟢 Altcoins did particularly well over the last week and weekend, of course, keeping with its mostly symbiotic relationship 🤲 with Bitcoin. Almost all the altcoins in the top 100 are in the green over the last 24 hours, according to Coinmarketcap.

⤴️ Starting off with ‘king of the alts’, Ethereum (ETH) is currently trading at $1483, up over 9% in the last 24 hours alone and up about 28% in the last week! And Ethereum Classic (ETC) is almost $23, up 20% in the last 24 hours also.

ApeCoin (APE) and Polygon (MATIC) are also doing equally well, up 22% and 18% respectively.

Is this a sign 📈 or a teaser of an ‘altseason’ to come? These altcoins and others are certainly showing signs of good growth in this current market we are in, and as long as Bitcoin and crypto, in general, can keep its pace and momentum, then we could see big gains to this rally. However, it does all come down to how Bitcoin will perform over the next two weeks 🤔 also!

We saw the stocks/equities markets close high in the green 🟢 end of the week last week, coming off a losing streak; and as of writing, the S&P 500 futures are up 0.82% and Nasdaq futures up 1.15%! However, it is the second week in the negative 📉 for all the major averages, including the Dow. This is partly due to the fact that fears of a recession are very prevalent in sentiment at the moment as investors and traders worry 🥺 that the Fed’s aggressive moves to battle inflation will turn the economy into a recession!

We also saw the strength of the US Dollar Index (DXY) hit even higher highs of 109, the highest that it has been in 20 years!

🗒 To briefly sum up last week’s general markets action, we saw a whole batch of economic data that created these market movements. We saw that inflation jumped to 9.1% in June (the largest increase since 1981) 😱 which led traders to assume that the Fed could raise rates by a full percentage point at the next meeting which is at the end of July. But by the end of the week, however, some of these fears and assumptions were calmed after the release of a strong retail sales number as well as various comments from Fed’s officials.

📅 This coming week will be eventful as it will be dominated by earnings reports as well as important updates from the US housing market. The European Central Bank (ECB) is also expected to be raising its benchmark interest rate which will certainly make an impact as it will be the first time this has happened since 2011. Finally, the UK will also be releasing its latest inflation figures of June, giving us an update and outlook on global price pressures.

❓ Why does all this matter for cryptocurrency investors you may ask? 🕵 Well as you may have noticed, the crypto markets have been closely following the traditional markets, and with all the fears of a global recession, this has certainly made an impact on the crypto world! But what about Bitcoin being a hedge against inflation as its original narrative? Well, if that is the case, the time will soon come for Bitcoin to prove its worth. In any case, as investors, we should always be aware of the global markets 🌐 to help gauge our trading and investing decisions and be open-minded as to how one market can and will affect another.

⚠️ Don’t forget to keep an eye out for our upcoming week’s events and forecast calendar later today. This will keep you in the loop as to what to expect from this week from a global macroeconomic perspective.

Summary:

• Bitcoin is continuing its upside movement into the new week, over $22K!
• Altcoins have done particularly well.
• Global markets mixed, and in general, awaiting further economic data to make their moves.
• Finally, with upcoming news and data this week - keep an eye as to how Bitcoin reacts!

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