Bitcoin, Ether, Major Altcoins – Weekly Market Update July 4, 2022
The cryptocurrency market erased $86 billion from its market cap during the last seven days and now stands at $876 billion. The top 10 coins were all in red for the same time period with Solana (SOL) and XRP (XRP) being the worst performers with 15.4 and 11.4 percent of losses respectively. Bitcoin (BTC) is currently trading at $19,446 while ether (ETH) is at 1,071.
Bitcoin closed the trading day on Sunday, June 26 at $21,036 unable to break above the local resistance in the $22,000-$22,500 area where the 200-day Moving Average (MA) was sitting on the weekly chart. This line usually marks the begging or end of a bull market.
The start of the new seven-day period was not good for bulls either. The BTC/USDT pair continued to trade in direction of re-testing the horizontal support below $20,000. Bears pushed the price down to $20,700 where the lower boundary of the long-term uptrend corridor is located.
Things did not change much on Tuesday and the biggest cryptocurrency dropped down to $20,200, erasing almost entirely all gains from last week’s rally. The 24-hour average trading volumes started to pick up pace as the selling pressure intensified.
The mid-week session on Wednesday came with a fourth consecutive red candle on the daily chart. Bitcoin reached $19,886 intraday before closing at $20,111. The bear flag pattern came into play as the recent reversal to the upside was nothing but a bearish retest.
As we mentioned last Thursday, there is still a big chance that the coin makes a similar move to the one from July 2021 when the marked low was re-tested 2 times before BTC started moving in the opposite direction.
On Thursday, June 30 BTC fell 7 percent in the early hours of the trading day to hit $18,661. The move however was quickly retraced and the coin ended the day and the month at $19,975.
The Friday session was when bulls attempted to break above $21,000, but the failed attempt resulted in an even deeper pullback in the evening, this time to $19,285.
The weekend of July 2-3 was marked by low volatility as the coin remained flat, stabilizing in the current zone.
As of the time of writing BTC is hovering around the $19,500 mark.
The Ethereum project token ETH rallied almost 46 percent from its $880 low to hit $1,281 on Sunday, June 26. Buyers almost made it to the 21-day EMA but were forced to retreat quick enough as trading volumes could not support an extended reversal of the downtrend. Still, the coin managed to add 6 percent to its market cap on a weekly basis in a rare demonstration of strength.
Sellers took advantage of the bear flag formation on the daily chart and started adding more to their short position which resulted in a significant pullback in the coming days. On Monday, the ether moved down to $1,190 at the beginning of the new week, then on Tuesday it lost even more territory and reached the $1,142 mark.
The third day of the workweek was when the leading altcoin broke below the short-term local resistance at $1,125 and hit $1,100 at the end of the session, erasing a total of 12 percent since the Sunday peak.
On Thursday bears pushed ETH even lower, to re-test the $1,000 horizontal support. It fell as low as $995 intraday but then moved up to $1,078 in the evening to end the month of June with a 44 percent loss.
Little changed on Friday as the ether registered its sixth consecutive red candle on the daily timeframe chart, but without making a new local low or breaking the psychological level of $1,000.
The first day of the weekend came with a push from bulls to $1,066 on Saturday. The ETH/USDT finally turned green.
The trading session on Sunday was marked by high volatility and a sudden jump to $1,090 in the morning before the price fell back down to $1,076 to once again close in positive territory.
The coin is currently trading at $1,072 as of the time of writing.
- COSMOS (ATOM)
Sometimes called the Internet of blockchains, COSMOS is a hosting environment where a network of sovereign blockchains is being built using the COSMOS SDK. The connected protocols are highly interoperable and customizable making them extremely flexible. This is one of the main reasons why a lot of developers choose this solution to build their projects over a more complicated alternative.
The native token of the ecosystem is ATOM, which was among the best performers in the last few weeks. The ATOM/USDT pair drew a perfect capitulation candle on the daily chart by hitting $5.5 – a 1.5-year low. Since then, it has rallied 46 percent to reach the zone around $8.5 – a solid support/resistance area and a major demand zone on the weekly timeframe from back in 2020 and 2021. It is also where the 21-day EMA currently sits on the daily chart.
We can expect to have support right above the $5 mark.
Altcoin of the Week
Our Altcoin of the week is Evmos (EVMOS). Evmos is a Proof of stake (PoS) application-specific blockchain built on top of the Cosmos SDK. It is fully interoperable with the Ethereum mainnet and EVM-compatible environments meaning developers can move all their preferred features and code from an Ethereum EVM chain to Cosmos thus enjoying benefits from the two blockchain ecosystems at once.
The coin was one of the very few to close the previous seven-day period in green following closely the price of ATOM, the COMOS ecosystem native token, which bounced back up strongly from its bottom two weeks ago.
Still, the Total Value Locked on Evmos registered a 25 percent drop on a monthly basis.
The EVMOS/USDT pair is currently at a horizontal resistance marked by its previous highest daily candle close at $2.3. If it manages to break this important line, the price of EVMOS can rally and go directly into price discovery mode.
Potential support at $1.9.
EVMOS is currently ranked at #90 with a total market cap of approximately $457 million.