The Market This Week: Bitcoin (BTC) Market Surpasses $60,000 USD as Ethereum (ETH) Nears ETF Launch Date

The markets have rallied impressively this week, with Bitcoin surpassing $60,000 USD early this week and altcoins following. The total crypto market cap has increased by 5.7% to $2.31 trillion USD.

The markets have rallied notably this week, with Bitcoin (BTC) rallying above $60,000 early in the week and dragging altcoins higher. The total crypto market cap also rose 5.7% to reach $2.31 trillion.

Ethereum (ETH) gained 5.3% this week amid growing speculation that U.S. Exchange-Traded Funds (ETFs) are nearing a launch date, with some analysts predicting July 23.

Bitcoin ETF flows were heavy on the inflows, with six out of the eight most recent sessions landing above the $128 million average in total daily flows.

U.S. Economic Data Improving

Federal Reserve Chair Jerome Powell spoke at the Economic Club of Washington, fielding a variety of questions from the audience. Here’s one response he gave when asked about the state of inflation.

“We didn’t gain any additional confidence in the first quarter, but the three readings in the second quarter, including the one from last week, do add somewhat to confidence,” Powell said Monday.

The Fed has consistently said that rate cuts won’t come until the committee is confident that inflation is headed back toward its 2% target. Is the pendulum finally starting to swing?

Hot Take

This kind of language has not come from key policymakers until now. Since we are starting to see weakness and decline in the jobs sector, we could see the first rate cut as soon-as September.

Bitcoin – BTC

Bitcoin price successfully moved below and reclaimed the May low in the early periods of this month, where it currently trades above the monthly open of $62,772.

We are also at the mid-point range of this now 127-day consolidation period. Below are two potential outcomes now that we are at the mid-point of this range.

Bullish Scenario

Bulls continue to defend any lows, holding above the monthly open. This could lead to a further advance above the current range mid-point.

Bearish Scenario

Failure to hold prices above the monthly open could see a decline closer to the May low region, where prices began to rally.

My Thoughts

We’re at a decision point, the mid-point of a multi-month range. I wouldn’t be surprised even in a bullish scenario that we do cool off for a period of time.

Aave – AAVE

With the upcoming Ethereum ETF listing, and the recent regulatory cloud clearing I have been analysing some of the other tokens within the Ethereum ecosystem, like AAVE – a DEFI lending protocol. Below is an analysis using Fibonacci extensions.

Bullish Scenario

Having created a new higher high, we have a key support level for AAVE. If the market continues to hold and trend higher and get above the ‘Golden’ Fibonacci 0.618 level ($121.95), we could then see further advancement.

Bearish Scenario

There is still the potential for downside and new lows should the support levels in grey not be held by the market.

Pepe – PEPE

Similar to the above, PEPE is another Ethereum ecosystem token and one of the more notable and prominent meme coins in the last few months. Below is an analysis using Fibonacci extensions.

Bullish Scenario

If price were to get above the 0.618 golden fib level, that could be seen as a win for the bulls where we could then see price trend and advance higher if it holds.

Bearish Scenario

This could be a bearish retest of the mid-range, which might see us retest support lower, or even put in new lows.

My Thoughts

For altcoins, this week depends on how Bitcoin plays out. If we see a pull-back, we could see altcoins retracing recent rallies. However, if we see Bitcoin continue to consolidate sideways, we may continue to see high performing altcoins continue to rally.

See you all again next technical analysis round-up.

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