On the technical front, a huge number of short positions had opened up on BTC. However, there was not much fodder for the bears as the Bitcoin bulls managed to keep the market above the crucial $32,000 price point.
Bitcoin and its ardent followers had a relatively calm week. Although there were some quick swings on both the lower and higher sides, BTC ended with relatively less volatility. Over the week, Bitcoin made a high of $35,894 and made a week’s low just above the $32,000 level. BTC is down by a meager 2.36 per cent for the week.
On the technical front, a huge number of short positions had opened up on BTC. However, there was not much fodder for the bears as the Bitcoin bulls managed to keep the market above the crucial $32,000 price point. The second-largest cryptocurrency and the largest altcoin by market capitalization, Ether, took a larger hit. It is down by 4.52 per cent for the week.
The daily time frame chart for Bitcoin indicated that the traded volume has taken a dip when plotted with the 50-day moving average of volume candles. This dip is a major indicator that points to the long-term accumulation of Bitcoin. It causes a shortage of supply of BTC across crypto exchanges. This squeeze in supply can gradually cause a huge bull run if the accumulation continues on its course.
Although this was a relatively calm week on the macro-economic front, two events managed to cause quite a stir in the crypto universe.
- Barclays bank stopped its clients from depositing fiat currency in cryptocurrency exchanges.
- Binance temporarily suspended payments through its SEPA network in the EU.
Although these events did not have any major impact on price movements of cryptocurrencies, it has caught the attention of several investors and traders. Cryptocurrency investors across the world are on their toes regarding such regulatory hiccups from banks or crypto exchanges.
On the other hand, several investors are optimistic about a reversal in the attitude of governments across the world towards cryptocurrencies. El Salvador recently made Bitcoin a legal tender and announced citizenship to people who invested three Bitcoins in the country. People are hopeful for a change following this decision by El Salvador.
Most of the major cryptocurrencies have been tightly range-bound for the past three weeks. Barring a few volatile swings, there hasn’t been any major directional move across cryptos since the decline that happened in May. JP Morgan analysts have come up with a prediction that the next bull run for cryptocurrencies will happen when Bitcoin’s dominance crosses 50 per cent of the total market cap of all cryptos. As of publishing this article, Bitcoin’s dominance stood at 45.36 per cent.
This week is poised to be an interesting one. Both Bitcoin and Ethereum are close to their crucial support levels. In case these levels are broken, several short positions will open up dragging the prices even lower. If Bitcoin and Ethereum can keep the support levels, there are good chances that we might see a dash towards $36,000 level in Bitcoin. Since most cryptos take cues from Bitcoin’s price movements, Bitcoin’s rally will likely bring a bigger rally in most other cryptos.
Among the top 10 cryptocurrencies, the best performer for the week has been the decentralized token, Uniswap, or UNI. It is up by almost 8.25 per cent this week. The worst performer has been the meme coin, Dogecoin. It is down by almost 13 per cent for the week. Perhaps, Dogecoins followers are waiting for another tweet from Elon Musk to lift this meme coin again.
Top 5 crypto gainers during the week (as of 11.00 am, July 11, 2021. Source: CoinMarketCap)
- Axie Infinity (AXS): 79.6 per cent
- KuCoin Token (KCS): 77.85 per cent
- Flow (FLOW): 67.28 per cent
- Stacks (STX): 65.04 per cent
- Synthetix (SNX): 50.49 per cent
Top 5 crypto losers during the week (as of 11.00 am, July 11, 2021. Source: CoinMarketCap)
- Telcoin (TEL): 37.14 per cent
- Internet Computer (ICP): 20.59 per cent
- Celo (CELO): 15.86 per cent
- Ethereum (ETC): 14.35 per cent
- Dogecoin (DOGE): 13.29 per cent
(Edul Patel is CEO & Co-founder of Mudrex. Views are his own)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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