Weekly Crypto Market Brief

Bitcoin printed a bearish engulfing candle on the weekly chart, further confirming its bearish market structure below the 200 weekly MA. Yet, to its credit, it has maintained support over the $19k level, while consolidating in the $19k-21.8k range and building solid market structure. Extreme fear and negative sentiment continue to grip the market, amidst global recession fears due to interest rate hikes and the Russia-Ukraine war.

Ethereum (ETH) has maintained its consolidation pattern within the $1k-1.25k range. It has been constantly tussling with the 200 MA on the 1h chart, breaking above it several times but failing to hold it as support. Notably, it has formed successive higher lows on the 4h chart, but still hasn’t had a decisive breakout in either direction. Currently at prices it had not experienced since January 2021, traders and investors will continue to monitor Ethereum and watch for a potential break past either the support at $1k or the resistance at $1.25k.

Litecoin (LTC) has traded in the $40-60 range over the past month, at prices not seen since November 2020. It briefly broke upwards past the 200 MA on the 4h chart on June 25, 2022, but formed a distribution pattern before dropping below this level and holding it as resistance. It then formed successive lower highs before dropping below the $50 support at the time of writing on July 5. Confirmation candles on different time frames below this level would potentially expose the $40 support level, which, if broken, could result in a possible drop to the $25 level for the virtual asset.

Bitcoin Cash (BCH) has been trading just above the psychological support level at $100 in recent weeks, in a price zone not experienced since the first quarter of 2019. The renowned Bitcoin fork has been operating in the $100-130 since mid-June, displaying substantial market weakness in the process. It has failed to hold above the 200 MA on the 1h chart, where it has formed a bear flag, and could potentially experience more downside action as a result. A break below $100 would be almost unprecedented for the coin, as the only previous venture to double digit figures proved to be fake-out, as it swiftly recovered back into triple digit territory with a bullish engulfing candle the following week. This was back in December 2018.

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