By Ending The Month Strong, Is Crypto Winter Thawing Out? | Daily News 1/8/22

📊 Bitcoin and the crypto markets closed the month in the green ✊, having performed particularly well over the last couple of weeks, improving general market sentiment! Bitcoin was able to close the month in the green 🟢 by 17% after dropping 3 consecutive months in the red by over 55%!

The U.S. economy 💹 has entered what analysts are calling a so-called “technical recession” after having two consecutive quarters of negative growth, but investors are starting to say that they believe that the weak macroeconomic conditions have been priced in. Want to know why? 🤔

Let’s go into more detail below! 👇

🤩 Bitcoin (BTC) has had a successful month, closing the month in the green for the first time in 3 months; and only just a few days ago, price was able to reach over $24,500, 40% higher than this cycle's low of $17,600 in the middle of June! ✨ These have been the best monthly gains Bitcoin has seen since October 2021!

However, since its recent top, Bitcoin has been steadily declining 📉 and is currently valued at just under $23,200, over 5% down. As you can see in our NAGAX chart below 👇, this recent downwards price action has broken the bullish trendline, the 100-MA and now its immediate support which was at $23,270. The next zone to break to see a continuation of a price decline is $22,860. If this breaks, then we could be seeing price return back to lower levels and the usual range we have been seeing for quite some time. But, if price and bulls can maintain their strength, then we need to see prices hit over $24K again to keep momentum to the upside!

Looking at the BTC/USDT chart on an hourly time frame, we can see Bitcoin continuing to make a move to the downside. Will the bears take over once-again? Or is crypto-winter now a thing of the past?!

🕵 Investors will surely be keeping an eye on stocks, as Bitcoin continues to move in correlation amongst them like the S&P and Nasdaq. Of course, investors will also be reviewing 👀 a collection of earnings data and the non-farm payrolls report later this week.

It is likely that if we do see a selloff 📉 on the stock indices, BTC will more than likely follow direction; if not immediately, a day or two or so after.

There are signs 📊 that Bitcoin and crypto in general, may be slipping out from the “crypto-winter” sentiment and getting ready once again for a continued summer relief rally. We have recently seen some altcoins make good movement, breaking out to the upside! As well as seeing short-positions getting liquidated or stopped out. Can we see this relief come into play? 🤔 What do you think? Let us know!

📊 Most altcoins in the last 24 hours are in the red 🔴, but there are some still in the green! At the moment, Ethereum Classic (ETC) is one of the worst performing alts at the moment, having dropped in price 🔻 by almost 11% and is currently valued back at $36 - after hitting highs of over $45! Of course, ETC maintained its position last week as one of the top performing digital assets, having gained almost 260% since its recent bottom in mid-June! So a pullback to this effect, especially after its recent big gains, isn't too much of a surprise.

🔻 We can't mention altcoins without talking about the ‘King of the Alts’, Ethereum (ETH). ETH has also had a great run-up in the last couple of months since its low of sub-$1K on the back of the news and announcements that ETH 2.0 will transition in September. Gaining about 100% on price since this cycle's bottom, it has fared extremely well, but of course and as expected, is now starting to decline; following Bitcoin’s current movement in the markets.

🟢 But it's not all red in the markets, with Kusama (KSM) and Polkadot (DOT) both doing well in the last 24 hours and both having increased in price by over 4%!

📆 So as we start a new month with August, we see investors are certainly looking to build on profits they made after having the best month for the U.S. equity markets since late 2020!

📋 This week we are set to see many important data releases as well as reports and talks, such as the July jobs report, NFP, and other corporate results which will be at the top of investors' minds to keep an eye on and see how the markets will react! 📈📉

❗ One of the more notable reports to look at is the Non-Farm Payrolls report which is expected to show slower growth by about 250,000 in July.

💹 As for the traditional markets in detail, we saw July close with the S&P 500 up 9.1%, fighting back from dropping over 20% in the first six months of 2020. The Nasdaq also rallied over 12% to mark one of its best months ever, and the Dow rose by 6.7%. The strong rebound we have seen for equities recently has come from investors' expectations showing slower economic growth which could make the Fed scale back its interest rate hikes.

👁️‍🗨️ Don't forget to keep an eye out for our ‘Economic Events & Forecasts’ blog that we produce for you every Monday! This will help put into perspective what we find to be the most important events in the week, explanations as to what they are, and of course, their effects on cryptocurrency traders!

Summary:

• Bitcoin rallied up to new recent highs, but now declining a little.
• Altcoins follow the same path as BTC, but some are still in the green!
• Big reports this week that could move the markets, such as the NFP report on Friday.
• So is ‘crypto-winter’ really starting to thaw out? Or could we see more potential downside?

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