Cryptocurrency Market update – Jul-07-2023
BTC/USD is consolidating well since coming out of the cycle low; a move above $29k appears to have put a 60-day cycle low behind us. We see bitcoin running into the 31k resistance 3x since June 23rd. We may be in for a choppy few days/weeks until the next move unfolds.
Don’t let short-term price moves change the bigger picture. What’s the bigger picture? Institutional adoption, ETF approvals, and demand > supply. This doesn’t happen overnight. Bull markets don’t just go up; they rise over time, make higher lows, and provide a few fake-outs along the way.
Longer-term perspectives continue the overall bullish narrative, with short-term retracements and sideways movement below resistance is a necessary hurdle to overcome.
BTC daily chart shows a slight retrace but the bullish posture for now has held well. Bitcoin price is currently consolidating above the $29K level and well above the 10-day MA.
Still early in the new cycle, we may go sideways for a while though, up till mid –cycle point for more upside possibilities. We are in a range with the $31k level, being the obstacle that must be overcome.
When you see a big move that doesn’t retrace but consolidating, there is every tendency that it’s going to continue the upsurge especially for a new cycle. We will experience a small decline before continuing the upsurge move. Don’t be afraid of any slight pull back because we’re expecting a mid-cycle consolidation to revalidate this move.
Chart 1. A significant price action, holding up well after the tremendous move higher, consolidating above the $29K level and well above the 10-day MA: Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
BTC weekly chart shows a long green candle (sizeable move away from the cycle low), putting the early 60-day cycle in the position to form a right translated cycle for the new 4 year-cycle. The chart tells us we are bullish, but the price action will be allowing consolidation on each move and getting it into the bullish phase (it’s not there yet).
The next cycle high is starting to come up on the horizon, but it feels like this market has one more good run left and we want to be well positioned to take advantage of it.
It’s unclear whether $BTC needs to dip to solidify $28500 as support before jumping to $33k key level. But at the moment, more arguments for upside at this time. Even though, we don’t have spiking volume, the relative strength index (RSI) continues to gain traction, moving deeper into overbought territory.
Pretty similar to BTC, holding on well and trending again in the right direction. The structure is still intact, and staying above the critical level of the 100-day MA and ultimately $1620 support level allows eth to remain bullish.
Having held those lows and now gone up on a counter trend move, expect a retest of the $2k resistance. If this level is scaled on a closing basis, ETH/USD could soar higher.
Overall, nice move and the sentiment is bullish to keep the momentum high.