The markets turn green as Bitcoin climbs 6% and eTH jumps 7% but does this mean that the market downturn is coming to an end? Let’s find out in today’s latest altcoin news.
After weeks of being in the red, the markets turn green and Bitcoin as the world’s top crypto by market cap is $21,663 or up by 10% in the past week and 6% on Thursday alone. Ethereum also saw notable gains of $1238 or 19% in the past seven-day period. The rest of the crypto space seems to be following suit with Solana being up 4% and DOT being up by 5%. Dogecoin also increased by 3% in the past day and Cardano also increased by 3%.
Was that the bottom for Bitcoin?
– Mass contagion feels contained w/ FTX
– Celsius paying off their BTC loan
– Bankruptcies already filed
– Inflation fears cooling off— Dan Held (@danheld) July 7, 2022
Blackware analyst Joe Burnett shared his opinion on what might be happening. He cited bitcoin’s correlation with the NASDAQ which is up by 5% in the past week and the recent selloffs from the companies like Three Arrows Capital creating a local bottom. Burnett said:
“This forced selling definitely contributed to creating at least a local bottom that the price could move up from.”
Another important retest for $ETHBTC, this time on the 200 day moving average cloud (EMA & SMA).
This teal range was former support, now acting as potential resistance.
If we can break above this range, it might be a key risk-on signal. pic.twitter.com/mJWbEXMZRh
— Caleb Franzen (@CalebFranzen) July 7, 2022
The BTC mining industry is impacting the crypto prices as well. Burnett said:
“We’re 30 days into a miner capitulation (according to hash ribbon metric), and there are signs that it is potentially ending soon if the price doesn’t fall further. Miner capitulations add to short-term sell pressure as miners liquidate their BTC treasuries to continue their operations.”
The ongoing crypto winter saw cryptocurrencies go to zero and multiple companies filed for bankruptcy already with massive layoffs happening as well. But does the sudden uptick mean the market fears are subsiding? Kraken’s Dan Held seems to believe so and said that the mass contagion of the continued domino effect where the crypto crashing affects more, has been contained by the FTX exchange whose CEO has billions of dollars to deploy towards failing crypto companies.
Reaction at 200WMA should be quite telling.
A reclaim of which, essentially making everything below a deviation, would be a nice swing-long setup for traders and prob triggers some trend algos. Rejection would be no bueno. pic.twitter.com/6DRvWqMMeN
— Will Clemente (@WClementeIII) July 7, 2022
Cubic Analytics analyst Caleb Franzen believes that Ethereum and Bitcoin’s 200-day moving average is a metric that if the currencies climb above it, can lead to traders that see more green. Others are less sure but Will Clemente as a BTC analyst pointed to the BTC 200-week moving average of $22,520 as an important metric so if BTC remains below this, the price can continue sliding.
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