July 13 Crypto Market Roundup

Bitcoin (BTC) slipped back towards the $9,100 last week, after making an encouraging rally towards the $9,475 level in early week trading.

The BTC/USD pair’s sudden reversal from a two-week trading high was largely attributed to a pullback in U.S. equity markets and selling pressure from BTC miners.

Technical selling pressure also increased towards the BTC/USD pair, after bulls failed to perform a multi-day price close above its key 50-day moving average, around.

Despite the pullback from the $9,475 level, bulls were able to perform to a positive weekly price close, above the $9,300 level.

Bitcoin’s 30-day volatility hit its lowest level since April 2019 last week, as the pioneer cryptocurrency failed to break free from its well-established price range.

Despite the lack of volatility surrounding Bitcoin, on-chain data remained extremely bullish, with Bitcoin’s mining hash rate hitting a new all-time record high yesterday.

Data also showed that Bitcoin’s Energy Value hit an all-time high last week. The Energy Value reading implied that the cryptocurrency’s ‘intrinsic value’ is now closer to $13,000.

On-chain data from Santiment also showed a large spike in BTC Token Age Consumed. Spikes in Token Age Consumed usually imply that a large directional move may be coming.

The latest Commitment of Traders report showed that asset managers had increased bullish bets towards BTC, while leveraged funds increased bearish bets BTC.

Bloomberg’s July Crypto Report noted that Bitcoin could be preparing to rally towards the $13,000 level. While Kraken released a report highlighting the increased correlation between Bitcoin and U.S. equity markets.

However, options market data suggested that Bitcoin could continue to trade in a narrow price range over the coming weeks.

The total market capitalization of the cryptocurrency market posted solid gains last week, largely driven by the ongoing rally in the DeFi space.

Bitcoin’s market dominance slumped to a multi-month low last week, and moved within touching distance of the 63% level.

In the altcoin arena, Dogecoin staged a major technical breakout last week, as retail traders triggered a buying frenzy.

Tezos and Cosmos also posted strong gains last week, alongside Chainlink and Stellar Lumen.

The Week Ahead

The current technicals show that Bitcoin (BTC) has formed a bullish reversal pattern on the lower time frame. A break above the $9,475 level should ignite the pattern, and cause a rally towards the $9,800 level.

Once above the $9,800 resistance level, Bitcoin could quickly rally towards the $10,500 and $11,000 levels. Technical analysis shows that the $12,400 level offers the strongest form of monthly resistance.

To the downside, a break under the $9,100 level exposes the $8,900 level. Key support below is found at the $8,800 and $8,400 levels.

Ethereum (ETH) suffered a major upside rejection last week, after failing to move back inside a long-term rising price channel. The ETH/USD pair has, however, found strong dip-buying demand, and still appears well-supported on pullbacks.

Bulls need to move price above the $250.00 level to move the ETH/USD back above key trendline resistance. If this scenario takes place then the ETH/USD pair could quickly rally towards the $290.00 to $300.00 resistance zone.

To the downside, a loss of the $230.00 level could trigger a wave of technical selling, and push the ETH/USD pair towards critical support, around the $217.00 level.