Crypto Market Review, July 12th

The large support of $ 20,000 was broken when bears finally pushed the price of the first cryptocurrency back to the level we saw at the beginning of the month. But despite the sharp fall, both altcoins and Bitcoin have other important levels to watch out for.

Technical support levels

Ahead of inflation data, technical analysis is still the only tool for predicting the short-term movement of Bitcoin in the market. The first support level stays at around the $ 18,800 price range since it was the price that served as a trampoline for BTC that jumped off twice after the fall of 40%.

Another guideline that we can see in shorter time frames such as four hours is a local trend line, which has served as a guideline for Bitcoin’s price since the beginning of the month. Right now, we saw the third successful jump from the $ 19,428 trend line support.

Unfortunately, any major increase in sales pressure will pretty much destroy the aforementioned support line, as the lack of buying volume in the market will not be able to cover any significant pressure.

The third important level for Bitcoin would be the local low we saw on June 18, when the price of the first cryptocurrency crashed below $ 18,000 and reached $ 17,592.

Unfortunately, another fall to $ 17,592 may not be a reassuring sign for investors, as it will mean that investors are not ready to support Bitcoin on the rise and would rather let it fall even more.

Why is the cryptocurrency market dying again?

The main reason behind the continued pressure on the market is the rise in the US dollar and uncertainty among investors about upcoming inflation data that may push financial regulators towards stricter monetary policy, which affects risk assets such as Bitcoin and cryptocurrencies in general.

As we mentioned in our previous market review, the last time the market was “surprised” by rising inflation figures, Bitcoin and other cryptocurrencies got a massive hit, losing up to 40% of their value in a matter of days.

Considering the local decline of 15-20% in the crypto market, poor inflation figures will lead to a further fall in most cryptocurrencies on the market. Ethereum, Cardano and XRP are already reacting to Bitcoin’s negative moves with a loss of 2-5% in the last 24 hours.

In general, traders and investors are waiting for the upcoming FOMC meeting on the US policy rate, which will directly affect the future of digital assets and stock markets in the coming months. Most analysts do not expect positivity in the cryptocurrency market until 2022.