Digital Asset Insights
Digital Asset Insights #77
In this season of high volatility, you need the right and updated information to trade responsibly. This weekly report recount previous market activities and accurately predict what to expect in the new week. You don’t want to miss it.
When the week opened, the Bitcoin price showed a lack of bullish momentum as it bounced off the previously created range. Bitcoin price produced a four-hour candlestick close below the 200-week SMA, indicating a weakness among buyers on Monday, July 25, 2022. Bitcoin price breached the ascending trend channel, prompting a 25% profit on Tuesday. Breaking news coverage was issued on July 21 to warn traders of the trend failure. The original peer-to-peer cryptocurrency produced the anticipated retest and rejection signal from the ascending channel on July 23 and has since lost 10% of its market value. Bitcoin price traded at $20,706 as the bears suppress the digital crypto in a free-fall fashion.
Bitcoin price rallied nearly 18% since the July 26 lows at $20,690. The peer-to-peer digital currency was on a steep incline aiming for new monthly highs at $24,130. Bitcoin closed Thursday near $24,000, retesting that area after a failed attempt to climb higher in the middle of last week. The first cryptocurrency added 3.8% over 24 hours, about as much as it has gained in the past seven days.
Bitcoin closed above its 50-day moving average for two days. At the end of the month, Bitcoin’s price momentum slowed down as it faced trouble crossing the $24,565 resistance level. Bitcoin price has been rising and falling in channels since January 2022. Each time an ascending corrective channel has stalled and broken down it has led to an immense crash. The leg-ups have always consolidated around the highest traded level.
As of now, the volume profile shows that the POC is at $21,128. Hence, investors can expect a sudden spike in selling pressure at this level to push BTC down. A breakdown of this level places the big crypto at the mercy of an inflection point, which extends from $19,000 to $20,000. If this support area also breaks down, investors can expect another flash crash that could push Bitcoin price anywhere from $13,000 to $12,000.
While things are looking slow for Bitcoin price, a bounce off the confluence of the 200-week SMA and the 30-day EMA at roughly $22,700 could give buyers a chance to make a comeback. If BTC produces a daily candlestick close above $24,565 and flips this level into a support floor, the bearish thesis will face invalidation.
Ethereum price came close to tagging the $1,700 hurdle on July 24 but fell short of momentum. As a result, ETH hung by an edge off the $1,543 support level. Moreover, on July 26, 2022, Ethereum price fell as expected. Ethereum price showed bearish signals just before the New York session ended on Friday, July 22. The subtle bearish divergence that was spotted led to a 16% decline. Ethereum price traded at $1,374.
On the 27th of July, 2022, Ethereum price missed the retest of the $1,700 hurdle and retraced roughly 18% to where it traded. A minor throwback seemed to be in place. The following day, the Ethereum price finally validated the weekly forecast, endorsing a conservative 1.5-1 trade setup forecasted days in advance. Ethereum price flipped the $1,700 resistance barrier into a support level, signaling a resurgence of bullish momentum.
With no hurdles in sight till $2,000, all ETH needed to do was to stay above the $1,700 foothold. Ethereum price did the unthinkable in 24 hours and flipped an important hurdle into a launching pad. All that was left for ETH to do was to maintain this momentum and rally to new hurdles. Ethereum price walked the last mile after falling short of retesting the $1,700 resistance barrier on July 25 and July 28. However, it made sense for ETH to exhaust as it had rallied roughly 65% between July 13 and July 24.
On the last day of the month, Ethereum price bulls clearly showed exhaustion as they retested the $1,730 hurdle for more than three days. Despite multiple attempts, ETH failed to move past this level, indicating a lack of buying pressure and a large stack of selling pressure. Therefore, the next logical thing for Ethereum price to do is retrace. A 9.7% drop seems likely for ETH to retest the $1,543 support level. Interestingly, this level coincides roughly with the point of control, aka the highest volume trade. The volume profile is drawn only for the recent run-up extending from July 13 to August 1. This allows investors to know if the uptrend was strong and backed with enough volume. A breakdown of the $1,543 support floor could send ETH down to $1,350 and below this level, the volume profile thins out considerably, hinting at a steep decline to $1,080.
At the opening of last week, Ripple price was at an inflection point. Ripple price retraced its moves seen since June 18, indicating the lack of strength among buyers. This move has not only undone the gains but threatened to go lower if the support confluence at $0.340 is breached. On Monday, July 26, an urgent warning was issued for XRP traders. The digital remittance token was rejected from the descending Elliot Wave Trend Channel (EWTC) and has since fallen 7% in free fall fashion. Being an early bull of the XRP price is ill-advised as a subtle ramping pattern confounds bearish strength on the Volume Profile indicator.
On Wednesday, July 27, 2022, Ripple price loosed hope. Ripple price hovered below the $0.340 resistance barrier after a 14% retracement over six days. This downswing also sliced through the two-month declining trend line that was flipped in the last week.
Ripple price showed reasons to remain concerned. On July 26, 2022, Ripple price was rejected from a historical trend line dating back to April 2021. On July 27, the Ripple. XRP price auctioned at $0.34. Ripple price was in a steep downtrend since April of 2021 and has not retraced 38-50% of the decline.
Ripple price rallied 13% on July 30 and collected the liquidity resting above the equal highs at $0.387. This upswing was impressive but lacked any momentum, and as a result, the XRP price was on its way to undoing these gains. Additionally, the latest four-hour candlestick closed below the $0.381 support level, suggesting that a further downtrend is likely to ensue. In such a case, investors can expect Ripple price to revisit the $0.340 support level.
On the other hand, if Ripple's price stays above the $0.381 barrier, it confirms its position as a support level and will also invalidate the bearish thesis. In such a case, the XRP price could open the path to revisit the $0.439 resistance level.
As of last week, Cardano price had made no huge progress since bottoming on May 12. The altcoin has been hovering just above this level and is likely to revisit it soon. Since Cardano price bottomed around the $0.380 support level, local tops at $0.550, $0.628, and $0.689 were formed. From May 12 to May 30, ADA stayed below $0.550, after which, it spent a brief time between $0.550 and $0.628 between May 30 and June 11.
After a breakdown of $0.550, the altcoin struggled to reclaim the level and has remained glued to the $0.435 support level. However, the price action that transpired after June 13 seems to be forming a fractal.
The fractal is simple and revolves around liquidity collection. The June 13 swing low at $0.435 was swept on June 19, resulting in a 21% ascent to $0.527. The second liquidity run took place as the July 13 swing low swept the liquidity resting below July 1. This development was followed by a 26% upswing to $0.550. The third liquidity event is likely going to occur as Cardano price sweeps below either the July 13 swing low at $0.401 or the May 12 swing low at $0.380.
Cardano price moved 14.62% following the FOMC meeting on Wednesday, which resulted in an interest rate hike of 75 basis points. A euphoric rally also engulfed the entire market, with the total market capitalization reclaiming the $1 trillion mark. The down leg is bound to stretch further, especially if Cardano price cracks the buyer congestions at $0.50. As the Relative Strength Index (RSI) forms a bearish divergence below the moving average, odds will flip in favor of an extended correction.
Several support areas are in line to cushion buyers at the confluence formed by the short EMA and the channel's middle boundary. If push comes to shove, investors should acclimatize to Cardano price, exploring downhill levels at $0.45 and $0.42, respectively.
The retracement will likely continue until Cardano price finds a solid footing, aided by the euphoria surrounding the Vasil hard fork, which will bring major upgrades to the blockchain, and is expected before August. According to Coin Telegraph, who quoted Trading Short, the token could plunge 20%.
Solana price had impressive trading opportunities last week. Still, the SOL price had a double scenario in the works that deem the digital asset unfavorable until further notice. Solana price traded at $38.34 last week Monday. Last week, the Solana price was a favorable digital asset for day traders and scalpers.
The following day, Tuesday, Solana price showed a lack of strength after piercing an important resistance barrier, denoting an overwhelming increase in sellers. This development pushed Solana SOL to trigger a full-blow reversal that pushed it down. Solana price swept the $44.37 hurdle on July 19 after rallying 49% in under a week. This massive move was impressive, but it failed to flip a crucial hurdle at $47.43 into a support floor. As a result of its incapacity and the surge in investors booking profits, SOL started reversing its trend.
Solana price rallied alongside its peers after the Federal Reserve raised interest rates by 75 basis points at their meeting on Wednesday. The competitive smart contracts token extended its bullish correction from the $34.77 support established on July 26. Although SOL is trading at $40 at the time of writing, it has the potential to close the gap to $50, bolstered by a falling wedge pattern.
For the second time in a row, the Fed raised its benchmark interest rate by 75 basis points to combat inflation. The regulator plans to bring the benchmark rate between 2.25% and 2.5%. This will be the highest level since 2018 and is expected to impact consumer and commercial loans directly.
The cryptocurrency market reacted positively to the news, with Bitcoin price soaring above $23,000. Ethereum price followed in the flagship cryptocurrency’s footsteps to trade at $1,626. On the other hand, Solana is seeking a balance marginally above $40 while awaiting a 22% boost to $46.72.
In the past seven days, Tether's price has risen by 0.04%. In the last 24 hours, the price increased by 0.01%. Just in the past hour, the price increased by 0.01%. USDT is currently priced at $1.000275. At $1.22, Tether is 18.01% below its all-time high.
BINANCE USD (BUSD)
Since last week, Binance USD has fallen by 0.15%. In the last 24 hours, the price declined by 0.15%. Within the past hour, the price dropped by 0.12%. There is a price of $0.999 per BUSD at the moment. There is a 10.00% drop from the all-time high of $1.11 that Binance USD reached in 2017.
There has been a 4.98% increase in Dogecoin's price in the past week. There has been a decline of 2.56% in the last 24 hours. A fall of 0.84% has been recorded in the past hour. DOGE's current price is $0.06861 per unit. It has fallen by 90.73% from its all-time high of $0.74.
USD COIN (USDC)
Dollar Coin's price has fallen by 0.01% in the past week. There has been no change in the price in the last 24 hours. Just in the last hour, the price grew by 0.01%. In the current market, USDC is priced at $1.00. As a result, it is now priced at its highest level ever.