This week has been a breath of fresh air for most cryptocurrencies, with BTC already up 11% and ETH around 18% up from its weekly opening price. Although BTC and other cryptocurrencies have been positive for the week, there are no fundamental grounds for this positive momentum which is a sign of worry.
If we look at crypto news for the week, Elon Musk has almost sold the majority of Tesla’s BTC holdings, which tells us that the crypto advocate is officially out of the market. Is this a sign that more trouble is ahead for the BTC or just an indication that Elon Musk just needed some liquidity for the company?
In other news, large institutional buyers sold around $5.5 billion in BTC during May, which could have contributed to the drop in BTC. However, does this means that it is the right time to leave the crypto train, especially BTC? If you look at BTC’s market cap, it still stands at $434.97 billion.
Let’s look at what happened in various cryptocurrencies this week & figure out what’s ahead for BTC, ETH, and others:
Weekly Open: $20,799.58
Weekly High: $24,276.74
Weekly Low: $20,762.45
This week’s opening price for BTC was $20,799.58, from where it dropped by $37 and reached $20,762.45. All of this happened during the first hour of the weekly trading session, and since then, BTC has been trading higher than its weekly opening price ($20,799.58). This is good news for BTC investors from a technical point of view despite the negative news surrounding BTC in the market.
If you look at the chart, a regression trend indicator was added to the BTC H1 chart – It is clear that BTC is trading inside a bullish channel and is respecting both the upper and lower limits. So from that perspective, our view of BTC is bullish.
Pivot points tell us what’s ahead for the BTC with the R1 at $22018, R2 at $23,238, and R3 at $24,791. On the downside, the S1 support is at $19244, and S2 support is at $17690. Based on this information, BTC has the potential to touch the R3 level at $23,238.
Weekly Open: $1338.65
Weekly High: $1650.05
Weekly Low: $1336.07
ETH is also positive for the week as it only lost $2 of its value for the entire trading week. Currently, ETH is trading 17% higher than its weekly opening price, which is in line with our ETH analysis from last week.
Right now, the momentum, as well as the trend, is positive for ETH based on the Ichimoku cloud analysis. Although the size of the clouds is shrinking, ETH is still trading above them, which is a bullish sign.
If we look at the RSI(14) for the ETH H1, it is around 47.90 at the time of writing this article – Once again, this is a sign that ETH is not overheated and has a lot of potentials to keep on going higher.
The nearest support level for ETH is $1475, and the nearest resistance level is $1650. So any break of these two levels will reveal the next direction for the ETH in the near term.
Weekly Open: $247.60
Weekly High: $274.65
Weekly Low: $247.50
The weekly open for BNB on 18 July 2022 was $247.60, and after dropping $0.10 (around 10 cents), it quickly went up to touch $274.65.
From $247.60 (open) to $274.65 (high), the overall increase was 11%. Although BNB has retreated from its high of $274.65, it is still 7% up from the weekly open, which is in line with the current trend in the crypto market.
For now, the nearest resistance level is at $274, and the nearest support zone is around $252 – $250. So for the buyers, it can be a good idea to wait and see how BNB reacts around the $252 – $250 region. If the momentum is bullish, that would be an indication that BNB can go back higher and target the $274-$275 region once again.
Weekly Open: $0.06306
Weekly High: $0.07695
Weekly Low: $0.06299
The momentum in DOGE was positive for the week as it went from $0.06306 to $0.07695 and gained 22% in value. However, the DOGE H1 chart tells us that a Head & Shoulder pattern has formed since 18 July 2022. In case you do not know, that’s a bearish chart pattern & forecasts a possible bearish reversal.
If we do get the break of the neckline around the $0.068 – $0.067 region with bearish momentum, DOGE will drop down to the $0.0575 price range (15% drop from the current levels).
So, for now, our view of the DOGE is neutral, and if we get a break of the H&S neckline, the outlook will turn bearish. So if you already have some DOGE and are planning on keeping it for the short term, you will need to keep an eye out for a possible decline.
Weekly Open: $6.91
Weekly High: $8.08
Weekly Low: $6.90
Polkadot (DOT) is currently ranking at the #11 spot among other cryptocurrencies, with a market cap of $7.46 billion. Just like BTC, ETH, and BNB, DOT is also positive for the week as it rose from $6.91 (opening price) up to $8.08 and gained 16.8% in value.
However, a head & shoulder pattern is forming on DOT, which tells us about a possible bearish reversal. If Polkadot closes below the $7.30 – $7.20 price region (neckline), the next stop would be at $6.30 (a drop of 16% from the current levels).
However, let’s not get ahead of ourselves as DOT is still trading above its neckline, just like DOGE. So until DOT doesn’t break below the neckline, our view of DOT is neutral at best.
This Week In Crypto News
Some of the important developments in the crypto realm are given below:
- California will soon start to allow candidates to accept BTC donations for campaigns.
- By 2030, users of cryptocurrencies will reach 1 billion
- Elon Musk sold roughly 75% of his BTC holdings.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.