You know what I haven’t heard a lot of lately? Grand pronouncements and/or aggressive denunciations of Bitcoin (BTC) and cryptocurrencies …
It’s been a while since we heard from Jim Bianco or Elon Musk. And the Jamie Dimons of the world have been similarly silent.
“Meanwhile,” as Sam Blumenfeld noted in the Friday, July 30, issue of Weiss Crypto Alert, “institutions continue loading up on crypto assets, which is no surprise considering how Bitcoin and most altcoins are still significantly below their April and May highs.”
It’s important to remember that this is still a maturing asset class and volatility remains the defining characteristic of how the market trades.
But it’s remarkable, this relative silence, as the King of Crypto appears to be consolidating, again, just below the next significant technical level of $41,000.
Let’s pick up Sam’s Friday commentary from the top:
Bitcoin is down today, but it has enjoyed a consistent rally for over a week. BTC closed positive for nine straight days, shown by the series of consecutive green candles in today’s chart.
A dip is a welcome sign, considering nothing goes up in a straight line.
A sharp reversal off of last Tuesday’s bottom came after Bitcoin’s first close under the $30,000 support. With a lack of selling pressure, it was able to ride the momentum and shift in market sentiment all the way to the upper end of its three-month range.
Bitcoin managed to overtake its 200-day exponential moving average (EMA) of $38,500, which is a great sign. It also shot past its 21-day moving average, facing little resistance before notching six consecutive positive days afterward. Bitcoin could still struggle as it contends with resistance at $40,000.
Here’s Bitcoin’s price in U.S. dollars via Coinbase Global, Inc. (Nasdaq: COIN):
Like Bitcoin, Ethereum has also managed to record nine consecutive green candles, even if it closes today’s trading in the red. It bounced lower after briefly surpassing $2,400, but a brief pullback is always expected after consistent daily gains.
Ethereum’s highly anticipated EIP-1559 upgrade will take place on Aug. 4, and if it isn’t delayed, this will change its fee structure by burning miner fees in hopes of making it less inflationary.
The second largest cryptocurrency by market capitalization climbed past its 21-day moving average without any trouble. Now, it could face additional resistance at the $2,400 price level as well as $2,600.
Here’s Ethereum’s price in U.S. dollars via Coinbase:
Here’s Sam’s bigger-picture framing of recent price action:
It is encouraging to see such a decisive rebound off of last Tuesday’s lows as broader investor sentiment continues to improve. After notching nine consecutive green days, today’s pullback is fully expected.
It will be important to see how the market reacts when Bitcoin and the other large-cap cryptocurrencies test resistances at the top of their established trading ranges. It is still entirely possible that Bitcoin retraces and continues to trade in range, but a decisive move forward could signal the next big move higher.
Meanwhile, institutions continue loading up on crypto assets, which is no surprise considering how Bitcoin and most altcoins are still significantly below their April and May highs.
Current fiscal and monetary policy decisions by governments heighten the need for institutions to hedge against disaster and protect themselves.
Fundamentals are as strong as ever, and it could be just a matter of time before the crypto market sets new all-time highs. Keep an eye on this ezine for our daily market analysis.
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Best,
David Dittman