Cryptocurrency market on July 22: Bitcoin price holds steady at 23,000, altcoins maintain momentum

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2022-07-23 19:22:42

Bitcoin (BTC) started to show bearish momentum on July 21 after hitting a daily bottom at $22,340. However, the largest cryptocurrency in the market reversed and closed above the $23,000 region.

Cryptocurrency Market

Market data shows the BTC/USD trading pair falling to $22,340 after the Wall Street open, down 8% from the previous high.

Bitcoin price movement on July 22, 2022

Bitcoin’s bullish momentum was met with resistance from the news that Tesla was discharging 75% of its BTC holdings. Subsequent macro events also contributed to a sharp drop in the price of Bitcoin as the dollar rose slightly and the European Central Bank (ECB) unexpectedly raised interest rates to combat inflation. The macro impact also caused Bitcoin to lose its 200-week and 50-day moving averages, at $22,800. However, at the moment, Bitcoin has regained the upper two levels and moved above $23,000 to close daily at $23,144.

$21,700 is currently the level BTC needs to defend if the price corrects below the $20,800 area. When comparing 2022 to previous bear markets, Bitcoin is still likely to post some upside momentum before entering another drop.

Top 10 largest cryptocurrencies on the market on July 22, 2022

With Bitcoin’s strong rally last night, the altcoin market was also in the green, as many tokens recorded double-digit returns.

Curve DAO Token (CRV), the native token of Curve exchange, which helps to operate the exchange, has governance functions, staking rewards, participates in voting and other activities of the exchange, has recorded a profit of up to 21% in the last 24 hours and more than 24% in 7 days. Synthetix (SNX) and ApeCoin (APE) also showed more than 15% momentum, while other projects such as Bitcoin Gold (BTG), THORChain (RUNE), Cosmos (ATOM), Polygon (MATIC) all rebounded by more than 10 % in the daily timeframe.

Ether (ETH) posted a positive 2.87% gain in the past 24 hours, currently trading around the $1,576 threshold. On the weekly timeframe, the token has seen huge returns with over 33% growth. Commenting on the outlook for ETH, Jonah Van Bourg, head of trading at liquidity provider Cumberland, pointed out that Ethereum’s transition to proof-of-stake is a factor in maintaining the uptrend. price for the largest altcoin.

“Despite the recent past price action being technical and highly macro-correlated, the Sepolia testnet successfully merged with proof-of-stake on July 6, setting the stage for a rollout mainnet in the near future”.

Thanks to The Merge event, Ethereum Classic, also has impressive growth momentum. Within 7 days, this token has increased by 75% in value compared to the previous time. Together with LindoDAO’s LDO token, these two tokens are gaining the biggest market momentum in the top 100 cryptocurrencies.

Macro factors

The Nasdaq Composite Index rallied on Thursday, as Tesla shares rallied on better-than-expected earnings results. Closing the session, the Nasdaq Composite added 1.36% to 12,059 points, the S&P 500 gained 0.99% to 3,998 points and the Dow Jones added 162 points (about 0.51%) to 32,036 points.

Over the past week, the Nasdaq Composite has gained a total of 5.3%, the Dow Jones is up nearly 2.4% from the start of the week and the S&P 500 is up 3.5%.

Consumer non-essential stocks led the gains in the S&P 500, with gains of more than 2% on the back of Tesla. Tesla shares jumped 9.8% after posting better-than-expected earnings despite falling auto industry gross margins. Still, the stock is still down nearly 23% year-to-date.

Meanwhile, the dollar weakened after a surprise move on Thursday from the European Central Bank (ECB), which raised interest rates by 50 basis points for the first time in 11 years. A weaker dollar could boost tech stocks, as some of the big players in the sector get some of their revenue from outside the US. Despite those developments, some investors see the weak economic report and continued high inflation pressure as signs that the market has not bottomed yet.

Experts have warned that the current inflation could lead to the “Great Recession”. Signs start with US real estate is collapsing and property sales are up 700% year over year.

The manufacturing index of the US Federal Reserve (Fed) Philadelphia area was at -12.3, much lower than the 1.6 forecast from Dow Jones. Meanwhile, the number of US citizens filing for unemployment benefits for the first time continued their upward trend, to 251,000 applications for the week, touching the highest level since November 2021.

So far, more than 90 S&P 500 companies have reported second-quarter results, and 78% of those companies have outperformed analysts’ expectations.

With the dollar weakening and safe-haven demand surging amid economic worries, gold has bounced back more than 1% from a one-year low on Thursday (July 21). Closing the session, the spot gold contract jumped 1.03% to $1,713 an ounce, after touching its lowest level since late March 2021 at $1,680 an ounce. Gold futures added 0.73% to $1,712 an ounce.

Oil prices fell sharply on Thursday (July 21) as higher gasoline inventories in the US and after the European Central Bank (ECB) raised interest rates led to concerns about demand. Meanwhile, oil supplies began to recover from Libya and Russia resumed gas flows to Europe. Ending the session, the Brent oil contract fell 2.86% to $103/barrel, the WTI contract lost 3.5% to $96/barrel.

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