Bitcoin (BTC) is again stuck in a multimonth trading range, with prices above $30,000 but seemingly unable to break out of the range. Bulls and bears have been battling it out without any clear winner emerging, and this week’s macroeconomic data from the US and Federal Reserve may not be enough to change the trend.
On-chain data suggests that investors are in a re-accumulation phase, perhaps in anticipation of a larger move in the near future. Meanwhile, the Crypto Fear & Greed Index is at its lowest for July, indicating a neutral sentiment in the crypto market.
The cnbc crypto, china crypto, crypto ethereum, and coval crypto are all topics of discussion as investors try to determine what could trigger a BTC price move. Moreover, with web 3.0 featuring social media, AI latest, and other features, the latest on AI is also a key factor to consider.
All of these factors and more will be in focus this week as traders attempt to make sense of the Bitcoin market.
Bitcoin weekly close keeps volatility away
Bitcoin’s weekly candle close refreshingly managed to avoid any major volatility, according to data from Cointelegraph Markets Pro and TradingView.
The close was surprisingly calm, with even $30,000 support standing strong. This has resulted in a narrow “mini range” since last week, when an unexpected surge to new yearly highs was followed by an abrupt dip.
“I think everyone can see this range with their eyes closed at this point,” commented Daan Crypto Trades, a popular trader.
Given the market’s inability to break out of the range, some traders are expecting a return to $27,400, an area not seen in almost a month. Crypto Tony offered a potential downside target area of around $28,300, and stated that this “remains his bias.”
The relative strength index (RSI) has been showing a bearish divergence with price trajectory, as observed by Jelle. He noted that “Bitcoin tried to take out the bearish divergence last week but got smacked down quickly.”
Earnings season leads U.S. data releases
Those looking for a macro-driven risk asset shake-up may be disappointed this week, as the United States has no major data releases. However, the tech firm earnings and jobless claims on July 20 could provide some volatility.
The Kobeissi Letter recently wrote in a social media analysis: “Earnings season is now in full swing and the July Fed meeting is in focus. It’s going to be a busy couple of weeks.”
CME Group’s FedWatch Tool estimates that the Fed will resume rate hikes despite positive data prints showing inflation retreating faster than expected. As of July 17, the odds of a 0.25% hike stand at 96.1%.
The U.S. Dollar Index (DXY) is attempting to reclaim the 100 mark after dropping below it for the first time in more than a year, which could impact the crypto market. Cointelegraph reported that Bitcoin previously had a strong inverse correlation with DXY, although this has decreased significantly in 2023.
Whales return to the game
CryptoQuant, an on-chain analytics platform, is observing a resurgence of Bitcoin whales, as evidenced by unspent transaction outputs (UTXOs). Contributing analyst SignalQuant pointed out that the UTXO Value Bands metric shows whales gradually returning in 2023, as seen in 2019 when the ‘whale group’ increased along with the price.
CNBC Crypto and other outlets have reported on the rebound of whales and other large investor groups at current crypto prices. Ethereum and other cryptos have experienced bankruptcies in the past, and China has had a significant impact on the crypto market.
The features of Web 3.0 are integrated into social media and other platforms, such as enhanced privacy, scalability, and decentralization.
Supply dynamics repeat early bull market signals
Analysts are currently keeping a close eye on whale behavior as well as other hidden bullish BTC price signals.
On-chain data reveals that more of the BTC supply moved near $30,000 than at any other price point, which is a critical point of interest among investors. According to Look Into Bitcoin, a total of 3.8% of the total supply has moved around the $30,200 zone.
At the same time, long-dormant supply is coming back to life. Philip Swift, creator of Look Into Bitcoin, argued last week that this has been a characteristic of the early stages of every Bitcoin bull market. He commented, “Increased onchain spending volume showing where we are in the cycle right now. History doesn’t repeat but it often rhymes.”
With the integration of features such as AI, crypto.com, and Ethereum into Web 3.0, the crypto industry is bracing for potential bankruptcies and the effects of China’s crypto policies as reported by CNBC.
“Greed” fades from crypto markets
The Crypto Fear & Greed Index, a classic indicator of market sentiment, is slightly lagging but still reflecting the swift shifts in attitude among crypto investors.
The index is currently at its lowest for July, at 54/100, and the $30,000 mark is a clear boundary between optimism and pessimism.
When the index reaches its extremes, it is often an indication of either a market rebound or retracement.
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This is a great opportunity to explore the features of Web 3.0, such as Ethereum, Coval, and CNBC Crypto, as well as the latest news on AI and crypto bankruptcies in China.
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