Crypto Review

Bitcoin is in the Bear’s claws

Bitcoin was almost flat over the past 24 hours, remaining near $34,000.  On the one hand, the current dynamics indicate that the retail sector is awaiting further triggers. On the other hand, judging by the extremely low trading volumes, market participants could easily panic and trigger an avalanche of sell orders. So what are we watching now: the summer calm before a new price rebound or is it a harbinger of a storm, and we are in for a massive sell-off in the nearest future?

The line between a possible price rebound and a sell-off below $30,000 is very fragile right now. On the technical analysis side, we see that bearish pressure still prevails, as BTCUSD remains below the 200- simple moving average, which turned from support to a resistance level a month ago. A triangle is forming on the chart with horizontal support around 30K, but the downward peaks reflect the increased bearish pressure.

The stock market is supported by central banks, but Bitcoin does not fall against this background, staying away from the growth momentum in equities. Large investors are probably focusing on the traditional market as much as possible right now because the situation there is also very difficult. There is a one-way relationship, where stock market growth does not increase bitcoin price, while a large-scale stock market sell-off almost always pressures crypto.

Of the positive news, there is the launch of the “London” update on the Etherium network in test networks. The launch of the mainnet may happen on August 4th. Thus, developers continue to follow the roadmap, creating a basis for supporting the leading altcoin.

What is troubling is that Barclays is prohibiting its customers from transferring from bank cards to the Binance cryptocurrency exchange. There is a possibility that developed economies will begin to restrict the ability to transfer fiat into and out of cryptocurrencies.

Now it is the most vulnerable place in the structure of digital currencies. The turnover around crypto exchanges draws particular attention, as it is often linked to the laundering of illegal funds.

The FxPro Analyst Team

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