Bitcoin and Ether Market Update July 14, 2022

The total crypto market cap decreased by $30 billion for the period since Monday and now stands at $885 billion. The top ten coins are all in red for the last 24 hours with Dogecoin (DOGE) and Cardano (ADA) being the worst performers with 2.3 and 1.6 percent of losses respectively. At the time of writing bitcoin (BTC) is trading at $19,800. Ether (ETH) is at $1,081.

BTC/USD

Bitcoin closed the trading day on Sunday, July 10 at $20,837 after failing to extend the uptrend above the 21-day EMA on the daily timeframe chart. The high selling volumes combined with the lack of bullish momentum, mainly when it comes to fundamentals resulted in a reversal to the downside.

The BTC/USDT pair started the new seven-day period by continuing the downtrend. It fell down to $19,972 and erased another 4.3 percent of its market cap. The high inflation fears and the risk of recession in the United States drove the price of the US dollar up which in turn accelerated the outflow of money from risk assets like stocks and cryptocurrencies. BTC was on its way to re-test the sub-$20,000 support area.

On Tuesday, the biggest cryptocurrency dropped down to $19,300 for the second time in July driven by the increasing sell pressure. Bulls will be hoping for a triple bottom bullish reversal at the horizontal support.

The mid-week session on Wednesday was marked by high volatility. Bitcoin was trading in the wide range between $18,900 and $20,100 before closing in green at $20,200, 4.8 percent up for the day. The consumer-price index in the world’s leading economy rose 9.1 percent (expectations was for 8.8 percent) in June from a year earlier which caused havoc across all asset classes in the early hours of trading.

What we are seeing midday on Thursday is a small price pullback down to the sub-$20,000 zone.

ETH/USD

The Ethereum Project token ETH continues to trade in a range. The leading altcoin is moving up and down the $1,030 – $1,260 range since June 13 when it first broke into this area.

Last week the coin ended the Sunday trading in red at $1,170, below the 21-day EMA, and after suffering a heavy rejection near $1,300 two days earlier. Still, it managed to add 8.5 percent to its valuation on a weekly basis.

On Monday, July 11 the ether lost another 6.2 percent and moved down to $1,097 heading towards yet another support re-test.

The Tuesday session was no different and we saw bears pushing the price down to $1,030, close to the psychological level of $1,000. Just like with BTC, the current macro support is stable, but it surely gets weaker with every re-test. However, a triple bottom reversal pattern is still in the cards.

The third day of the workweek came with an early drop to $1,007, which was later retraced. ETH closed at $1,115 – a 7.5 percent increase.

As of the time of writing it is trading slightly lower.