As we approach the end of the week, the broader sentiment in the crypto market is still mixed. The major development that occurred this week was BTC breaking the $20,000 support. However, this was short-lived as BTC/USD found a lot of buyers below $20,000 and is now trading above the $20,000 psychological level.
According to experts, Bitcoin (BTC) has likely reached its bottom based on the on-chain analysis. However, a report from Glassnode suggests that BTC is yet to form a resilient bottom. Before we can witness another market-wide bull run in crypto, the top cryptocurrency, Bitcoin (BTC), will have to stage a strong comeback.
We take a look at some of the largest digital assets by market cap and how they performed this week.
Weekly Open: $20,850.65
Weekly High: $21,078.88
Weekly Low: $18,892.00
After reaching the $22,500 resistance level last week, Bitcoin (BTC) faced strong selling pressure, which ultimately pushed it below $20,000. Many experts and major investors were of the view that the $20,000 level would not break, but that level was shattered this week. After reaching a weekly low of $18,892.00, BTC finally found some bullish momentum and ended up making a weekly high of $21,078.88.
If you look at the chart above, it almost seems that the $18,892.00 level proved to be a turning point for the BTC. It almost feels like the BTC is making a V formation recovery.
If you look at the current H1 chart of BTC/USD (15 July 2022), it has completed the inverse Head & Shoulder pattern already. BTC has already tested the neckline of the inverse H&S and then moved up with positive momentum. All of these technical readings tell us that BTC is well on its way to touching the $22,000 price level, which is also a major psychological level.
Our view for BTC is bullish as it is expected to reach $22,000 based on the technical readings.
Weekly Open: $1168.37
Weekly High: $1240.00
Weekly Low: $1006.32
Ethereum is also enjoying a mini-bull run of sorts as it is currently trading above its weekly open of $1168.37. If you look at the charts, ETH got into a holding pattern on 11 July and remained in that bearish formation until breaking out of it on 14 July.
Right now, ETH is also bullish, just like BTC, and is on its way to targeting the $1280 resistance (last week’s high). We believe that the area between $1280 – $1300 will prove to be a serious battleground for ETH. If you zoom out the ETH H1 chart, you will see that ETH has already tried too many times to break above the $1300 level but was pushed down hard.
So, for now, ETH is bullish, but the $1300 level next ahead will be the main deciding factor. If we get strong bullish momentum in BTC, then this will lend strength to the ETH investors.
Our view for ETH is bullish for now as it is on its way to targeting the $1280 – $1300 region.
Weekly Open: $234.7
Weekly High: $240.7
Weekly Low: $216.4
In terms of technical readings, BNB coin is the one that is showing a very clear picture of what’s happening and what’s ahead. This week started with BNB trading at $234.7, and after a couple of hours, it eventually touched $216.40. However, this struggle between the bulls and bears ended up making a textbook example of an inverse head & shoulder pattern.
If you look at the BNB H1 chart, you will see that it formed an inverse head & shoulder pattern between 11 July – 14 July 2022, and everything about this pattern is clean.
Based on the bullish break of this inverse H&S pattern, there is a good chance that BNB will target the $250 – $252 region soon.
Weekly Open: $0.4625
Weekly High: $0.4491
Weekly Low: $0.4023
Cardano is also enjoying a bull run despite what the experts are claiming. If you look at the ADA H1 chart (11 – 15 July 2022), it has not only broken out of its bearish trendline ($0.42) but also formed an inverse H&S in the process.
Similar to the other cryptocurrencies above, the inverse head & shoulder pattern seems to be the leading catalyst for traders.
Based on the ADA H1 technical chart, this coin has the potential to target the $0.4750 – 0.4800 region. Once this target is achieved, it will put ADA just close to its last week’s high, located near the $0.48 level. A closer look at the H1 chart of ADA reveals that this area may prove to be problematic for the coin and even serve as a strong resistance.
But the charts tell us that ADA has a strong chance of targeting the $0.4750 – 0.4800 region. This would represent a ~ 9% rally from the current levels.
Important Crypto News This Week
Now that we have discussed the important technical aspects of major cryptocurrencies, let’s look at the events that impacted or will have an impact on cryptocurrencies in the coming days:
- AAVE (Defi Token) is in correction mode now after gaining 100% in 1 month.
- New York Yankees have formed a partnership with NYDIG to pay its workers in Bitcoin (BTC).
- OpenSea, which is a major NFT platform, has slashed its workforce by 20%!
- US lawmakers are getting close to making rules for digital assets, including cryptocurrencies.
- Ethereum developers have finally confirmed that “The Merge” is happening soon!
Overall, the news is indeed promising in terms of the fundamental realm, and considering the positive development on the technical side; things are looking bright for cryptocurrencies. But considering how long the bearish trend is going on in BTC, ETH, and others, any attempt at a bullish trend just seems like a trap.
So, for now, staying cautious and only looking at the near-term bullish targets seems to be the safe play. For any major bullish trend to take place, it will take strong, strong momentum and a lot of time to bring the baby bull to maturity!
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