Cryptocurrency market on July 21: Bitcoin had a moment to hit $23,800 before turning around

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2022-07-25 19:30:41

Bitcoin established a weekly top above $24,000 before turning sharply lower overnight, closing daily at $23,223.

Cryptocurrency Market

Market data shows that Bitcoin price has pushed to a high at $24,281, igniting hopes of a fresh bull run for the market.

Bitcoin price chart July 21, 2022

While the sustained rally helped boost investor sentiment, some analysts still warn of the risk of the market starting to show some bearish signals that everyone needs to watch out for.

Bitcoin’s climb above $24,000 officially confirmed a break out of the previous trading range of $18,000 to $22,500. According to on-chain research firm Jarvis Labs, users need to be wary of the possibility of sustaining the current bullish momentum when whale activity is relatively weak. On the BTC divergence chart, whales have barely moved in the past few months as Bitcoin has been trending down.

The data also shows that larger institutions have yet to return to buying. Based on the identified trends, Jarvis Labs stated: “users should not get too excited as the market is unlikely to rise beyond $28,000 of liquidity” and instead suggested that “$25,000 is the next target. there is a possibility that BTC can touch it.” The change in sentiment over the past week has been noted in the low time frame, the trend has turned bullish.

Top 10 cryptocurrencies by market capitalization on July 21, 2022

In the past 24 hours, Altcoins also turned down slightly when Bitcoin showed a correction signal. In which, Zilliqa (ZIL) is the project in the top 100 with the strongest decline, when it lost 12% of its value. Followed by Quant (QNT), Arweave (AR), Elrond (EGLD) when recording a loss of over 7% on the day.

Ethereum has also turned sharply lower after breaking through the $1,600 zone yesterday, closing daily at $1.521 and trading around $1,474 at the moment. Cryptocurrencies in the top 10 in terms of total capitalization have a 5-8% decline in the 24-hour timeframe. However, the situation still shows optimistic signs when XRP, SOL, ADA, BNB all increased by nearly 10% compared to the previous week.

Macro factors

US stocks continued to rally on Wednesday (July 20), as all major indexes hit their highest levels since early June 2022.

Closing Wednesday’s session, the Nasdaq Composite added 1.58% to 11,897, while the S&P 500 added 0.59% to 3,959. Meanwhile, Dow Jones only increased slightly 47 points (equivalent to 0.15%) to 31,874 points. The Nasdaq Composite recorded its highest close since June 8, 2022, and the highest since June 9, 2022 for the Dow Jones and S&P 500.

The information technology and non-essential consumer sectors led gains in the S&P 500, gaining more than 1% on Wednesday. Meanwhile, the healthcare and utilities sectors lagged behind the overall market.

Shares of semiconductor companies surged after the US Senate pushed for a $50 billion bill to boost chip manufacturing in the US. Advanced Micro Devices shares rose 4.1%, Nvidia jumped 4.8% and Qualcomm advanced 2.9%. Streaming company shares rose on better earnings results from Netflix. Netflix shares jumped 7.4%, Disney gained 3.8%, Paramount gained 3.8%, and Roku jumped 6.9%.

Investor sentiment has also gradually stabilized, believing that the bear market has now made a bottom. Still, others remain skeptical of the recovery, as they await more earnings reports from businesses and look for more clues about the state of the economy.

On the economic front, a report from the American Mortgage Bankers Association has shown that homebuyers will have a harder time dealing with rising inflation and interest rates. Mortgage demand last week fell more than 6%, to a 22-year low. At the same time, according to the National Association of Realtors, sales of available homes in June fell 5.4% compared to May.

To date, about 12% of S&P 500 companies have reported results. Among them, 68% of these companies had profits that exceeded expectations. Investors have been waiting this earnings season for hints on how companies are dealing with the worst inflation in more than 40 years.

With the recent US consumer price index report showing that inflation has hit a 40-year high, many expect the US Federal Reserve (Fed) to continue raising its benchmark interest rate from 75 to 100 basis points (bps) on July 26. Blackstone’s Private Wealth Solutions expects the Fed to raise rates by 75 bps and also believes such a rate hike is possible.

Meanwhile, there are plenty of predictions at the higher end, as some believe a 100 bps increase is also likely. “With inflation so hot, the next Fed rate hike could be the biggest rate hike in decades,” the report, released by Barron’s, details a possible next one. %. Furthermore, other sources from CBS and CNBC indicate that a 100 bps increase will be announced next Wednesday at the monthly meeting of the Federal Open Market Committee (FOMC).

Fears that central banks may continue to raise interest rates to keep inflation in check, coupled with data from the US government showing lower gasoline demand during the peak summer season, sent oil prices lower on Wednesday. (July 20). At the end of the session, the Brent oil contract fell 43 cents to $106 a barrel. WTI oil contract lost 1.88% to 102 USD/barrel.

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