Bitcoin, Ether, Major Altcoins – Weekly Market Update July 11, 2022
The cryptocurrency market added $37 billion to its market cap during the last seven days and now stands at $915 billion. The top 10 coins were mostly in green for the same time period with ether (ETH) and Bitcoin (BTC) being the biggest gainers with 6.8 and 6.4 percent gains respectively. Bitcoin is currently trading at $20,552 while ether (ETH) is at 1,147.
Bitcoin closed the trading day on Sunday, July 3 at $19,300 in its first green day since June 25 when it last touched the zone above $21,000. The biggest cryptocurrency somehow managed to defend the solid horizontal support around the $19,500 mark.
The 200-day MA on the weekly timeframe chart (then sitting at $22,500) was the next big resistance in front of bulls if they were to initiate at least a short to mid-term reversal to the upside.
On Monday, the BTC/USDT pair climbed 4.5 percent up to hit $20,200 in its best bullish session since June 23. The 24-hour trading volumes started to pick up the pace and were now regularly meeting the average values for the last 14 days.
The trading day on Tuesday, July 5 was slightly different as BTC traded in the wide range between $19,300 – $20,700 during intraday before closing at $20,160 with a negligible loss.
The mid-week session on Wednesday came with a strong continuation of the uptrend. Bulls pushed the price up to $20,600 to hit the lower boundary of the recently broken long-term uptrend corridor (on the higher timeframe charts, mainly 1M).
The risk assets were trying to catch up with the US dollar while commodities were struggling to continue their strong rallies.
On Thursday, July 7, bitcoin made a huge 5.5 percent jump to $21,633 and broke above the 21-day EMA for the first time since June 6.
The move was followed by an equally strong start of the trading day on Friday when the coin reached $22,512 before erasing all gains later in the session and closing in red eventually.
The extremely high selling volumes managed to crush the uptrend and even though the BTC/USDT pair remained flat on Saturday, the sellers pushed the price down to $20,886 on Sunday forcing it to close the weekly candle below last week’s open price.
BTC is currently trading at $20,560 midday on Monday.
The Ethereum project token ETH hit a two-week low on June 30 by re-visiting the sub-$1,000 area. However, it started to show a sign of exhaustion of the downtrend which became visible from the way it bounced up from the $1,000 support in the next few days. Buying volumes started to increase while the Relative Strength Index (RSI) was now out of the oversold area.
The ether ended the previous week with a 9.9 percent loss but above the major support lines.
On Monday, July 4 buyers were in control of the price action. The ETH/USDT pair rallied 7 percent to $1,150, engulfing the last five candles on the daily chart.
Then on the second day of the workweek, it corrected its price down to $1,130 but not before briefly touching the $1,080 mark in the early part of the session.
The uptrend was resumed on Wednesday, July 6 when with a fresh 5 percent jump no matter the even more hawkish news from the United States Federal Reserve which was now hinting at a 50 to 75 bps rate hike increase in the next meeting.
On Thursday, July 7 made one more step up, this time hitting $1,251 before closing at $1,235 above the 21-day EMA. The coin was now once again at top of the range on the daily chart.
Bears became more active and started opening shorts on Friday hoping the price will be rejected at the range high and this is precisely what happened. The ether corrected its price down to $1,209.
The first day of the weekend was relatively calm and the ETH token remained flat with significantly lower volumes.
Then on Sunday, July 10, it lost the 21-day EMA and started moving South touching $1,172 at the daily candle close. The coin was not able to form a bullish engulfing candle on the weekly chart.
What we are seeing on Monday is a second consecutive day in red.
- Polygon (MATIC)
MATIC was one of the best-performing digital assets in the last seven days. The popular Layer-2 scaling solution added 25 percent to its market cap and climbed up to $0.57, temporarily breaking into the next major resistance zone around the $0.60 mark.
The altcoin is once again among the Top 20 biggest crypto assets as per data from CoinGecko thanks to the numerous new partnerships and collaborations.
The popular social media platform Reddit announced it will launch its very own NFT-based avatar marketplace on Polygon while the digital trading exchange Robin Hood’s Polygon integration also came live.
Bulls will have to push the price above $0.64 to break the resistance level while bears will be hoping for rejection in the current levels of trading.
Altcoin of the week
Our Altcoin of the week is Aave (AAVE). Aave is one of the most popular lending and borrowing platforms out there. Considered by many as one of the original DeFi blue-chip projects, Aave is still ranked #2 by Total Value Locked with $5.9 billion as of the time of writing.
The AAVE/USDT pair is currently trading 88 percent below its all-time high but recently started to show signs of revival.
The coin bottomed at $45.4 in mid-June and since then is moving in the upward direction only adding 71 percent to its valuation in less than a month’s time. In the last week alone, it jumped by 35 percent and is now trading in the $80-90 support/resistance area on the weekly timeframe chart.
Potential support at $55-$60.
The main reason behind the rally in the price of AAVE is the news that the project will develop its own native decentralized, collateral-backed stablecoin called GHO that will be pegged to the USD.
AAVE is ranked at #50 on CoinGecko with a total market cap of $1 billion.