Bitcoin (BTC) fell below the critical $66,000 mark on Tuesday as markets brace for a short-term correction. However, long-term forecasts for BTC and other altcoins remain bullish. Signs indicate investors are buying the dip, but analysts believe the markets are in an unstable week.
In another significant development, spot Ethereum ETFs saw net inflows of $107 million on their first day. Recent ETFs have shown positive inflows despite Grayscale’s Ethereum Trust reporting outflows of $485 million.
Is a Short-Term Correction Coming?
Bitcoin (BTC) dropped below $66,000 as markets prepare for a short-term correction. However, looking at the bigger picture, BTC has performed relatively well, with over 6% gains last month. Despite recent declines, BTC has continued to improve, as seen in price charts. Open interest for BTC also reported a notable increase in perpetual BTC contracts (15%), adding nearly $1.7 billion in new positions. These metrics, along with increased underlying value, reduced liquidations, and positive funding rates, indicate that most market participants anticipate BTC price appreciation.
BTC’s marginal drop comes as Mt. Gox moved over $2.8 billion worth of BTC to two separate wallets. According to Arkham Intelligence data, one wallet received $340 million worth of BTC, while the second wallet received $2.5 billion worth of BTC.
“A total of $2.85 billion worth of BTC was transferred by Mt. Gox to new wallets this morning, in order to distribute 5110 BTC ($340.1 million) to 4 separate Bitstamp addresses.”
A week ago, cryptocurrency exchange Kraken confirmed receiving funds from Mt. Gox’s trustee and will distribute them to creditors by month’s end. Bitstamp, another exchange that received funds for distribution, stated it would also commence fund disbursements before the end of July.
Spot Ethereum ETFs Report $107 Million Net Inflows on Day 1
Meanwhile, new spot Ethereum ETFs reported positive net inflows of $107 million, despite Grayscale’s Ethereum Trust witnessing significant outflows totaling $485 million. BlackRock’s iShares ETF saw inflows of $266.5 million, Bitwise’s Ethereum ETF reported net inflows of $204 million, and Fidelity’s Ethereum Fund reported inflows of $71.3 million. These inflows were sufficient to offset the $484 million outflows from Grayscale’s Ethereum Trust.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is trading below $66,000 as Mt. Gox began transferring its final batch of BTC. A total of $2.85 billion worth of BTC was transferred to a new wallet in the early hours of the Asian markets. The top cryptocurrency had dropped to a low of $63,260 on Thursday but managed to recover from that level. As a result, BTC recorded a 4.10% increase on Friday, pushing above $65,000 and settling at $66,652. The weekend saw BTC remaining bullish as the price climbed to $67,087 on Saturday and $67,654 on Sunday, closing the weekend on a positive note.
Source: TradingView
However, BTC faced significant selling pressure on Sunday, as seen on the price chart, resulting in a daily low of $65,730. The current week started with BTC recording a marginal decline before sellers took control on Tuesday, pushing the price down by 2.52% to $65,894. The current session sees buyers and sellers competing for control as buyers attempt to push above $66,000. The BTC price chart indicates some consolidation at higher levels, suggesting a possible pause in the current uptrend. Buyers will aim to keep BTC above $66,000 and push towards $68,000 when demand increases. Such a scenario would set BTC up for a push towards $70,000 and a potential new all-time high.
If sellers breach $66,000, we could see a drop towards the 50-day SMA, but with investors buying the dip, a strong recovery could be seen from this level. If the price continues to fall, it would signal a reversal in sentiment with sellers gaining control. Looking at technical indicators, the RSI is currently at $59, giving BTC ample room to push higher.
Ethereum (ETH) Price Analysis
There has been significant attention around Ethereum, with spot Ethereum ETFs making their debut and recording inflows of $107 million. Trading volume also exceeded $1 billion, with most ETFs trading in the green. In comparison, Bitcoin spot ETFs recorded trading volume of $4.5 billion on the first day, with net inflows of $600 million. With ETF trading underway, analysts have predicted a moderate price increase for ETH, giving it a price range between $3,740 and $4,675. What can we expect in the coming days?
We could witness a minor correction following the launch of Ethereum ETFs, which could send ETH towards $3,400. Maintaining this support level is crucial, with on-chain metrics like a significant increase in exchange inflows and the number of long positions indicating traders expect ETH to rise post the spot Ethereum ETFs’ launch. ETH is trading above the 20-day SMA and the 50-day SMA, indicating short-term and medium-term bullish momentum. However, as mentioned earlier, buyers must not allow sellers to breach the $3,400 support, as it is crucial for maintaining ETH’s upward momentum. So far, support has held, allowing ETH to consolidate.
Source: TradingView
If ETH can sustain above this level, it could push towards $3,500 and target the next critical resistance level at $3,700. A break above this level could also propel ETH towards $3,800. So far, ETH has been unable to stay above $3,500. After reaching $3,537 on Sunday, ETH declined on Monday, marking a 2.67% drop to $3,443. However, buyers managed to push ETH up again on Tuesday, with a 1.21% increase to $3,484. In the current session, ETH is declining slightly more than 1% as sellers attempt to breach $3,400. The RSI is currently at 59, indicating it is in a neutral zone.
Solana (SOL) Price Analysis
Solana (SOL) managed to stay above $170 despite significant selling pressure over the past two sessions. Whale activity has also increased, with SOL’s 24-hour trading volume up nearly 7%. SOL was highly bullish until the weekend but struggled to surpass the $185 resistance. The price saw significant gains on Friday, rising by 6.30% to $169.29. Saturday saw SOL rise above $170, increasing by 2.32% to $173.73, and a 6.20% increase on Sunday allowed SOL to climb to $184.50, just shy of the $185 resistance.
Source: TradingView
However, sellers were expected to defend this level, and SOL declined on Monday, dropping nearly 3% to $170.04. SOL continued to fall on Tuesday as sellers attempted to push it below $170. However, they were unsuccessful, so SOL settled at $173. With strong support at $170, SOL is bullish in the current session and is trading at $176.91. If buyers continue to maintain bullish momentum, SOL could retest $185. A break above this level could open doors for a potential move towards $200. However, sellers will defend this level and try to push SOL down to $170 or lower. The RSI indicator is currently near overbought territory at 62, while widening Bollinger bands indicate short-term volatility for SOL.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has continued to decline since it rose above $8 over the weekend, as sellers attempt to push the price below $7.60. After dropping to $7.83 on Thursday, UNI rebounded and rose by 2% to $7.99, just below the $8 level. Facing strong selling pressure, UNI managed only marginal gains on Saturday, allowing it to surpass $8. The price faced significant selling pressure on Sunday as sellers tried to push UNI below $8. However, with strong demand at lower levels, UNI managed to recover and recorded a 1.39% increase to $8.12.
Source: TradingView
Sellers managed to take control on Monday and pushed UNI below $8. UNI eventually settled at $7.81 after a nearly 4% drop. The bearish sentiment continued into Tuesday. Buyers attempted to move above $8 but were unsuccessful. Sellers gained momentum and pushed UNI down another 1.27% to $7.71. The current session sees bears in control again as they aim to drive UNI below its support level. If UNI falls below $7.50, we could see the price drop to $7 before stabilizing. However, buyers are expected to defend this level, meaning UNI might spend some more time trading between $7.50 and $8.
Toncoin (TON) Price Analysis
Toncoin (TON) recorded a 4.25% decline over the past seven days. Despite this drop, TON has shown potential for a bullish recovery. Throughout most of July, TON traded between $7 and $7.60. TON had reached $7.62 early last week but sharply declined, dropping to $7.14 on Wednesday. A recovery saw TON rise to $7.30 by Friday, but a bearish weekend meant TON fell again to $7.17. With the cryptocurrency markets seeing significant declines on Monday, TON also declined, marking a 2.60% drop. This meant TON lost the critical $7 level, with sellers pushing the price even lower on Tuesday, dropping to $6.87.
Source: TradingView
However, strong demand at lower levels allowed buyers to push the price back up during the current session. Currently, TON has risen by 1.71%, with buyers attempting to reclaim the $7 mark. Over the past two months, TON has been trading between two converging trend lines, which have acted as dynamic support and resistance levels significantly influencing TON’s price movement. TON also recorded significant growth in TVL, primarily due to DeDust and Telegram’s combined user base exceeding 900 million.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) experienced an incredible surge last week, and with increasing demand for meme coins, this bullish trajectory could continue in the long term. Another factor contributing to WIF’s bull run is being a meme token based on Solana. With SOL targeting $200, WIF could also witness another increase. However, the current rally of WIF has faced hurdles recently, reaching $2.82 over the weekend. Buyers struggled to push WIF higher amidst growing selling pressure.
Source: TradingView
As a result, the price retreated again on Monday, dropping by 2.89% to $2.73. WIF continued its decline on Tuesday as selling pressure intensified, falling nearly 7% to $2.55. However, sellers couldn’t push the price below $2.50. The current session saw WIF rebounding, with the price currently up almost 4%. So, where is WIF headed from here?
WIF could recover further if broader markets do so and look to surpass $2.85 and $3. A break above this level could see a move towards $3.50. However, if the price reverses, sellers could attempt the $2.50 level again.
SEI Price Analysis
SEI struggled to break resistance between $0.35 and $0.38 and faces significant selling pressure at these levels. The cryptocurrency, which had significant upward momentum last week, turned red this week as sellers exert influence in the market. SEI had a massive 10% jump on Friday, reaching $0.38. A further 3.30% increase on Saturday allowed SEI to settle just below $0.40. Bulls tried to push above $0.40 but were unsuccessful, as seen on the price chart.
Source: TradingView
With sellers defending this level, SEI faced significant selling pressure on Sunday, dropping to a low of $0.37. However, buyers managed to push the price back up, with SEI eventually recording a 0.77% decline. SEI exhibited notable volatility on Monday as buyers attempted to push above $0.40 while sellers sought to lower the price. Sellers ultimately prevailed, with SEI dropping nearly 5% on Tuesday to settle at $0.37. The current session sees SEI declining by 1.34% and facing significant downward pressure.
If SEI manages to stay above the 50-day SMA (Simple Moving Average), we could see the price recover and attempt another move towards $0.40. However, if the bearish sentiment persists, a drop to $0.33 seems probable. Price stabilization could occur around this level, with the 20-day SMA acting as support.
Disclaimer: This article is provided for informational purposes only. It is not intended nor should it be construed as legal, tax, investment, financial, or other advice.
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