CRYPTOCIES

Crypto Technical Analysis Report | 15th-July-2022


The crypto market has been trading in red with a market capitalization of about $933 Billion. Crypto tokens have traded mixed on Thursday. Despite the hot inflation data from the US, Bitcoin was able to reclaim the $20,000 mark, a key psychological level. In line with expectations, high inflation in the US in June would prompt the Federal Reserve to tighten monetary conditions more aggressively to curb consumer price inflation. The crypto wagon traded mixed, with Bitcoin, Ethereum, XRP, Solana, and Polkadot while stablecoins also saw marginal gains. Shiba Inu and Dogecoin were among the tokens in  red.

Bitcoin rate noticed a short pull-return following July 13’s excessive inflation print, however, the rebound visible in BTC and altcoins show that customers are shopping for the dip. Bitcoin (BTC) prevented losses as United States equities dived at the July 14 Wall Street open, however, buyers remained nervous. The fact that bitcoin failed to break above $22,000 on July 8 gave the bears scope to take a $100 million profit when options expire this week. Most Bitcoin (BTC) traders would rather see a sharp price correction and subsequent recovery than languish below $24,000 for several months. However, since June 14, BTC has been doing the opposite, and its latest struggle is breaking the $22,000 resistance. Because of this, most traders are keeping their bullish expectations on hold until BTC sees a daily close above $24,000. Events outside of the crypto market are the main factor affecting investors’ prospects for digital assets, and on July 14, US Treasury Secretary Janet Yellen warned that inflation was “unacceptably high” and supported efforts by the Federal Reserve. When asked about the impact of rising interest rates on the economy, Yellen acknowledged the risk of a recession. On the same day, JPMorgan Chase reported a 28% year-on-year profit drop, despite flat sales. The difference stems mostly from a $1.1 billion provision for credit losses due to a “slight deterioration” in the economic outlook. The correlation of Bitcoin with the S & P 500 remains incredibly high and investors fear that a potential crisis in the global financial sector will inevitably lead to a retest of the June 18 low of $17,600.

From the macroeconomic perspective, the US CPI rose to 9.1% in June, beating expectations for an 8.8% year-on-year increase. Fed funds futures are currently pointing to an 81 basis point rate hike for July, suggesting that some participants are expecting a 100 basis point hike. Various on-chain indicators are pointing to a likely bottom for Bitcoin (BTC), but analysts at market research firm Glassnode are unconvinced that the bottom is in. In The Week On-Chain report on July 11,  analysts said  the market may need to fall further “to fully test investor resolve and allow the market to form a resilient bottom.” 

Technical Outlook:

BITCOIN:

Bitcoin (BTC) chart | 15th-July-2022
Bitcoin (BTC) chart

BITCOIN continues to trade sideways in a range and is forming a ‘Symmetrical Triangle’ pattern on a daily time frame. The asset has made a couple of Doji candles at the support (ascending trendline of the triangle) and again a double doji at the resistance (descending trendline of the triangle) indicating indecision in trend. BTC has very strong resistance at $23,000 and $17,500 will act as strong support. Once the breakout occurs above $23,000 with good volumes then we can expect it to further surge up to $28k levels whereas a break below 17,500 will lead to further downfall.

ETH:

Ethereum (ETH) Chart | 15th July 2022
Ethereum (ETH) Chart

ETH after taking support around the psychological level of $1,000 has started to rise by forming a ‘Higher High Higher Low’ pattern but with low volumes. However, the bulls yet again failed to push the prices above the strong resistance level of $1,275 and corrected and dropped to $1,000. Currently, on a daily time frame, the asset is consolidating and is trading in a range from $1,000 to $1,275. Breakouts on either side of the range with good volumes will further decide the trend for the asset.

MATIC:

Polygon (MATIC) Chart | 15th July 2022
Polygon (MATIC) Chart

Matic has made a small ‘Cup and Handle’ pattern with a neckline of $0.63. The asset has given a breakout above the neckline and has rallied up to $0.735. Matic can face a minor resistance at $0.75 and can retest the support of $0.63 (Neckline of the pattern). Once it sustains above $0.75 it can further surge up to $1 whereas if it breaks below $0.6 then the prices can drop down to $0.45.

Weekly Snapshot:

USD ($) 07 Jul 22 15 Jul 22 Previous Week Current Week
Close Close % Change High Low High Low
BTC $21,638 $20,569 -4.94% $22,314 $18,966 $21,877 $19,689
ETH $1,238 $1,192 -3.72% $1,263 $1,034 $1,229 $1,019
MATIC $0.56 $0.71 25.80% $0.59 $0.45 $0.72 $0.53
Cryptocurrency 1w – % Vol. Change (Global)
Bitcoin (BTC) 35.62%
Ethereum (ETH) 0.31%
Polygon (MATIC) 32.13%
Resistance 2 $28,500 $1,550 $1.00 $0.60
Resistance 1 $23,000 $1,275 $0.75 $0.45
USD BTC ETH MATIC BAT
Support 1 $17,500 $1,000 $0.60 $0.33
Support 2 $16,000 $860 $0.40 $0.25

Market Updates:

  • The cost of mining one Bitcoin (BTC) has fallen to ten-month lows as mining hardware becomes more efficient, and difficulty has dropped 6.7% since its May peak.
  • BNB Chain has launched a new platform, DappBay, to discover new Web3 projects. DappBay is equipped with a novel feature called Red Alarm, which assesses project risk levels in real time and alerts users of potentially risky decentralised applications. 
  • A single CryptoPunk has sold for a whopping 2,500 Ether (ETH) which equates to a price tag of just over $2.6 million.

Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum, etc are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.



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