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With the favorable macro tailwinds drawing the bets higher for the crypto market and Bitcoin and Ethereum finding new resistances to climb over throughout the month of July, are we in for a crypto revival? Or is the market witnessing another breather amidst the crypto winter that has shrouded the market so far in 2022? Letâ€™s find out in todayâ€™s article.
Bitcoin trades above $23,000
Bitcoin has moved up the charts by 26% during July, while the market, on the whole, has seen a 35% increase in the market cap since it bottomed in June. At the time of writing, Bitcoin was trading at $23,100 while Ethereum was at $1,650.
<source: Tradingview, Binance>
As clearly depicted in the chart above, Bitcoin has been moving in an ascending parallel channel and may continue its ascent in August. It closed the past week above its 200-W MA of $22,800 and is now nearing its 50-D EMA at $23,214. Julyâ€™s close was BTCâ€™s first monthly close in green since March. The overall market also seems away from the â€˜fearâ€™ zone, with the prices rising despite the continued lull of the bear market blues. The Crypto Fear and Greed Index stands at 45, officially in the neutral territory after months of hibernating in the extreme fear zone.
However, $24,000 remains the near-term resistance for Bitcoin. Any downward movement will again bring the $20k support into play. Bringing the US Fed interest rate announcement into context, July saw stocks soar despite the interest rate hike, which is good news for highly-correlated crypto assets. Cryptos performing against a 40-year record high inflation presents extreme pressure for risk assets, a feat traders canâ€™t ignore.
Ethereum, on the other hand, is looking to overcome its next resistance at $1,700 very soon before it moves forward to reclaim the $2k level. All the anticipation surrounding Merge plus other on-chain metrics are contributing to its uptrend. While the market is looking up, it may be considered a good time to buy the dip, but investors are advised to exercise caution and know-how before putting in their investments in the asset of their choice.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.