Weekly Market Recap(From 2nd of Jul to 16th of Jul)
The CPI of June dropped significantly and performed better than expected. Coupled with Powell’s dovish speeches on monetary policy in the House of Representatives and the Senate, the market has rekindled hopes of an interest rate cut. Judging from data available in the interest rate swap market, traders have begun pricing in the possibility of two interest rate cuts in 2024. And it is expected that starting from the FOMC in September, interest rates will be cut at every subsequent FOMC.
After the German government sold BTC, FUD in the market gradually decreased. Mt.Gox’s repayment method will be based on the BTC price several years ago, and the potential selling pressure will not be large. So after gold and U.S. stocks responded bullishly on Thursday, cryptocurrencies started to see gains over the weekend.
Relative to U.S. stocks that continue to price in interest rate cuts, BTC and stocks in developing countries will become the leaders of this cycle. The SEC is currently expected to issue its latest response to the ETH ETF this week, and there is a high probability that it will be officially launched this week.
Again, we are already on the way to a rate cut.
BTC
Over the past seven days, BTC has demonstrated the power of the bulls. It is back in range and has repaired the loss caused by FUD. It should be noted that the market is mainly dominated by retail investors on weekends, and there will not be major fluctuations due to the rest of institutions. However, the bullish trend of BTC formed over the weekend and continues to these days. Looking at the WTA indicator, the blue columns representing whales increase when the price hits 54000. Both whales and shrimp have turned bullish. The ME indicator switched to a bearish trend due to long-term fluctuations.
In summary, BTC bulls are well-positioned to develop further this week. We maintain our original resistance level 74000 and support level 58000.
ETH
This is the era of ETH. Although FUD caused greater losses to ETH, the continuous rise has repaired it. The listing of ETH ETF remains a focus of the market. Like BTC, ETH bulls enjoyed a rare weekend of strength and are holding on. On the WTA indicator, after ETH fell below 3000, whales appeared. The ME indicator continues to maintain a bullish trend.
To sum up, we believe that ETH may lead the market higher this week. We maintain our original resistance level 4000 and support level 2800.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
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