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Crypto MarketWatch

28 July 2021 | ZebPay Trade-Desk

Bitcoin, after months of facing stiff resistance in the range of $32,500-$36,000 at different points in time, broke free and witnessed a significant rally as it skyrocketed and breached the $39,400 on Monday morning this week. BTC buyers were quite active over the weekend, as BTC broke the 50day moving average of $34,000 and shot upwards.

The asset is trending towards the $40,000 mark, and some profit booking is likely and hence this might act as a strong resistance level for the asset now. Bitcoin remains in a consolidation phase as of now though and will be so until the price does not beat the $40,000 mark, the topmost point over the last 8-9 weeks.

BTC, as always, has had a spillover effect on some altcoins too, as Aave, Bitcoin Cash and Chainlink have also witnessed significant double-digit day on day percentage growth, clocking 18%, 13%, and 15% growth respectively over the week.

Ethereum too has seen an appreciation of about 10%, and as it hit the $2,350 mark, but has fallen a little since. This rally could fuel inflows into these assets, namely BTC and ETH, as many investors have been on the sidelines over the past couple of weeks. While the overall outlook is still bearish, this upside seen yesterday may very well act as the much-needed respite the market needed, and hence the next few days remain very crucial at this point. 

From the chart below we can see that the prices of the dominating currency, BTC, were range-bound in the last 2 weeks, until 2 days ago. The prices swung upwards and hit a high of $40,499, after it was trending at a  low of $29,360, and then was stuck in the range of $30,000 to $34,000, for a few days before the rally took place. It rose by almost 15% in the last 2 weeks.

On the other hand, the volume has been volatile. The volume fell to a low of around $18 bn during last weekend. It maintained its level slipping little and continued the upward trend since 25th July and reached a 2-week high volume on the 26th of the month,  around $51 bn. The volume has escalated due to the rally in price by about 166%. 

The market capitalization of the largest asset in the crypto space followed the same trail of volume and moved accordingly. It has swelled by about 15% in the last two weeks. Reigning as the undisputed holder of market rank 1.

The reason for Bitcoin’s behavior can be mounted to a few things. The first is the rumor of amazon accepting bitcoin as payment this year which has been cleared that it’s not happening soon. Another reason is Twitter’s CEO’s comment about Bitcoin is the key to Twitter’s future, which also boosted the rally. The fall-off can be objected to the lack of institutional demand and a lot of other bearish factors.  Yet the future for bitcoin lovers looks promising. Bitcoin has started its natural behaviour of rallying up finally after the market reset.  

The second-largest cryptocurrency ETH, was also range bound most of the month, fluctuating between $1,850-$2,100. The prices remained stable for these 14 days with a high of around $2,400 and a low of $2,000. The closing price remained in a stretch of around $2,300 to $1,800. The prices have risen by about 15% while volume showed mild oscillations.

The volume fell to $13 bn during last weekend but rallied upward soon now at $23 bn. It has swelled by around 78% in the last 2 weeks. This means the people are now trading more and the market is not stagnant anymore. The market capitalization of Ethereum has been pretty good too, and it has followed the paths of its price. It has been rallying upwards since 21st July and continues to do so.

The market cap has escalated by about 15% the same as the price. The behaviour of ETH since the last 2 weeks can be attributed to a few things. The negative trend can be due to the exit of Anthony Di Lorio from the crypto space. And the upside can be objected to the Brazilian securities regulator approves Ether ETF, the money raised for the feature film on the world of Ethereum and its founder.  Ether also found relief after the Federal Reserve chairman sidelined inflation problems.  Again the coming days look great for Eth and it will continue to rank 2nd in terms of market cap. 

Add the weekly table, summarizing price and volume movement. (weeks deviations, only BT

The altcoins account for every other coin minus Bitcoin. But due to the great popularity of Ethereum it is not considered much in the category of altcoins. Since the last 2 weeks the altcoins have mainly copied their elder sibling BTC and ETH and behaved somewhat in line with that. The DeFi token has started trading at double digits after price rallies in BTC. With the news of French government pushing an agency to regulate crypto across the EU which shows a great situation for the coins. Glamnetic, a beauty product company, has now started accepting crypto payments. A strong rally in the altcoins suggest that the bulls market has recommenced. With the spikes observed in Google and twitter trends regarding the NFTs and DeFi coins the forthcoming days would be wonderful for them too. 

USD ($)20 Jul 2127 Jul 21Previous WeekCurrent Week
CloseClose% ChangeHighLowHighLow
BTC$29,807$39,40732.21%$33,159$29,360$40,499$31,745
ETH$1,788$2,29828.56%$2,037$1,807$2,429$1,759
Market Capitalization (bn)Volume (bn)
USD ($)20 Jul 2127 Jul 21USD ($)20 Jul 2127 Jul 21
CloseClose% ChangeCloseClose% Change
BTC$559$74032.32%BTC$23$3552.17%
ETH$236$26813.56%ETH$17$2332.49%

After the high’s the markers saw at the start of May when most assets skyrocketed, the market took a turn.  Since then most assets fell drastically and were trading in a range for almost 8-9 weeks, as they all faced stiff resistance and low volumes. These two weeks have a swinging but good ride for the coins. A lot of them have gone down trading at 3 weeks low during last week’s mid and end. But since the last few days, the market sentiment has been extremely positive. The volumes have increased across most assets. With China imposing strict rules and Jack Palmer accusing crypto space of a capitalist industry there are a lot of blows at crypto. But positive outcomes such as more industries and sectors accepting crypto and Governments across the world making it more regulated give hope for a strong and bright future for Crypto. 

References:

https://coinmarketcap.com/

https://www.coindesk.com/

Disclaimer : This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice

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