Crypto Dropping: Will It Hold This Week? | Daily News 25/7/22

👀 Bitcoin traded sideways for most of the day Sunday, to then fall below $22,000, a drop away from the weekly highs; however, closing the week strong in the green 🟢! Bitcoin is currently valued at just around $21,900, down over 3% 📉 in the last 24 hours after reaching record 1-month highs of over $24K. Ethereum is currently valued at just over $1500, dropping over 5% since yesterday; following suit as well as the rest of the crypto market. As for the crypto Fear & Greed Index, we have seen it improve over the last couple of weeks but is still in the ‘fear’ zone, indicating that there are still concerns and worries 😓 about the potential global economics affecting cryptocurrency!

As for the general markets 📊, we saw equity markets close in the red on Friday and the strength of the dollar (DXY) still reflects uncertainty as to whether it will start climbing back up again or not. Of course, all ears 👂 and eyes 👀 will be on the Fed meetings this week, in particular where they will be announcing the latest interest rate hikes, and finally give us clarity as to whether we will see a 0.75% rise or even a 1% percent rise! Traders are certainly awaiting this news, ready to work with the volatility these news announcements bring.

Let’s explore further! 👇

Bitcoin (BTC) is currently valued at around $21,900 as of writing, with over a 3% decline in the last 24 hours! This has continued a trend to the downside 📉 since its recent highs of over $24K last Wednesday. In doing so, we have drawn a bearish trend line in the charts below 👇, to keep aware of any trend reversals.

The BTC/USDT chart on the 1-hour timeframe shows a steady decline in the formation of a bearish trendline. Will news this week of upcoming interest rate hikes bring lower or reverse the current trend?

☝️ As you can see in the charts, the current price is very close to the immediate support of $21,820. If BTC is to break this level to continue down lower 📉, then $21,270 is the next point to look at. Of course, looking to the upside - if BTC is to reverse from here 📈, the main resistance point to get through is just under $23K.

🕵 Of course, we have the bearish trend line to keep an eye on. If the price breaks over this and maintains, then that will tell us a reversal in trend is happening. You can also see that the price is now under the 100-MA, having tested and bounced back twice in the last two days. Are we seeing a ‘head & shoulders’ / ‘M-formation’ pattern emerging here? This week should paint us a better picture! 🧩

Why? Because Investors will be eyeing up 👁️ the US FOMC’s decision on interest rate hikes. The Federal Open Markets Committee (FOMC) is most likely approving a 0.75% interest rate hike 🔺 as opposed to a 1% hike that is expected to be enough to avoid a steep recession and vastly affect assets and the market.

⚠️ Keep an eye out today for our weekly economic events and forecast blog, to keep you up to speed with this week's news, announcements, and data releases.

🥈 The 2nd largest crypto by market cap, Ethereum (ETH) is currently valued at just over $1525, resulting in around a 5% decline 🔻 in the last 24 hours. ETH is sitting in a sideways channel at the moment, between $1500-$1600 approximately, and has certainly had its run and is still holding up pretty well, but it is now waiting for Bitcoin’s next move to dictate its direction; as well as, of course, global economic factors.

🔴 The rest of the altcoin market is also in the red, following this weekend's decline. Although Ethereum Classic (ETC) is in decline with -6% in the last day or so, its value is actually still up over 7% in the course of the past week!

💹 Equity markets closed last Friday in the red 🔴, however, the weekly closes were relatively well received due to the easiness of the expectations from investors towards the likelihood of the interest rates rising 0.75% as opposed to 1%; that is still a possibility, but less than likely.

💸 The US Dollar is on a stronger turn at the moment, as traders and investors are preparing for these interest rate hikes this week and are mostly looking towards safety as opposed to riskier asset investments, as data is proving to a weakening global economy. ⚠️ Make sure you keep an eye out 🕵 for today’s weekly ‘Market Events and Forecast’ blog, where we list out what events, data, and talks that may be important to look out for this week and how they could affect the crypto markets!

Summary:

• Bitcoin has been declining over the last few days, forming a bearish trend line and falling under the 100-MA.
• ETH and the rest of the altcoins, are all in the red; awaiting Bitcoin’s next move.
• Everyone’s ears and eyes are on the Fed’s announcement this Wednesday on the latest interest rate hikes, which is expected to move the markets.
• Our ‘Economic Events & Forecast’ is out later today, so keep your eyes peeled for that.
• Tomorrow I will produce up-to-date market analysis live on YouTube, so make sure you’re subscribed!

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