Bitcoin (BTC) fell below the crucial $66,000 mark on Tuesday as markets prepared for a short-term correction. However, the long-term prediction for BTC and other altcoins remains bullish. Signs are pointing to investors buying the dip, but analysts believe the markets are in for a volatile week.
In another significant development, spot Ethereum ETFs posted net inflows of $107 million on their first day. The newly launched ETFs posted positive inflows despite Grayscale’s Ethereum Trust posting outflows worth $485 million.
Is A Short-Term Correction Coming?
Bitcoin (BTC) dropped below $66,000 as markets prepared for a short-term correction. However, looking at the bigger picture, BTC has done relatively well, growing over 6% during the past month. Despite recent declines, BTC has continued to improve, as we can see in the price chart. Open interest in BTC also reported a noticeable increase in BTC perpetual contracts (15%), adding almost $1.7 billion in new positions. These metrics, combined with an increase in the underlying value, smaller liquidations, and a positive funding rate, indicate that most market participants expect an uptick in BTC’s price.
BTC’s marginal drop comes after Mt. Gox moved over $2.8 billion worth of the cryptocurrency into two separate wallets. According to data from Arkham Intelligence, one wallet received $340 million worth of BTC, while the second wallet received $2.5 billion worth of BTC.
“Mt. Gox moved a total of $2.85B BTC to new wallets this morning in order to distribute 5110 BTC ($340.1M) BTC to 4 separate Bitstamp addresses.”
A week ago, cryptocurrency exchange Kraken confirmed it had received funds from the Mt. Gox trustee and would be distributing them to creditors before the end of the month. Bitstamp, another exchange that has received funds to be distributed, has stated it will also begin disbursing funds before the end of July.
Spot Ethereum ETFs Post $107M Net Inflows On Day 1
Meanwhile, the newly launched spot Ethereum ETFs posted positive net inflows of $107 million despite Grayscale’s Ethereum Trust witnessing massive outflows of $485 million. BlackRock’s iShares ETF posted $266.5 million in inflows, Bitwise’s Ethereum ETF posted $204 million in net inflows, and Fidelity’s Ethereum Fund reported inflows of $71.3 million. These inflows were enough to counter the $484 million worth of outflows from Grayscale’s Ethereum Trust.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is trading under $66,000 as defunct crypto exchange Mt. Gox began moving its latest BTC tranche. Some $2.85 billion worth of BTC were moved to a new wallet during the early hours of the Asian markets. The premier cryptocurrency had dropped to a low of $63,260 on Thursday but was able to rebound from this level. As a result, BTC registered an increase of 4.10% on Friday, pushing above $65,000 and settling at $66,652. The weekend saw BTC remain bullish as the price climbed to $67,087 on Saturday and $67,654 on Sunday to end the weekend on a positive note.
Source: TradingView
However, BTC faced significant selling pressure on Sunday, as can be seen in the price chart, resulting in a day low of $65,730. The current week began with BTC registering a marginal decline before sellers took control on Tuesday, pushing the price down by 2.52% to $65,894. The current session sees buyers and sellers vying for control as buyers attempt to push back above $66,000. The BTC price chart hints at some level of consolidation at higher levels, which means we could see a pause in the current uptrend. Buyers will attempt to hold BTC above $66,000 and look to push above $68,000 when demand picks up. Such a scenario would set BTC up for a push to $70,000 and a potential new all-time high.
Should sellers breach $66,000, we could see a drop to the 50-day SMA, but with investors buying the dip, we could see a strong rebound from this level. If the price continues to drop, it would mean sentiment has flipped, and sellers are in control. Looking at the technical indicators, the RSI is currently sitting at $59, giving BTC plenty of room to push higher.
Ethereum (ETH) Price Analysis
There has been considerable hype around Ethereum, with spot Ethereum ETFs debuting and recording $107 million worth of inflows. Trading volume also topped $1 billion, with most ETFs trading in the green. In comparison, spot Bitcoin ETFs recorded $4.5 billion in trading volume on day 1, with 600 million worth of net inflows. With the ETFs trading, analysts have predicted a modest price bump for ETH, giving it a price range between $3,740 and $4,675. So, what can we expect in the days ahead?
We could witness a small correction following the launch of Ethereum ETFs, which could send ETH towards $3,400. Maintaining this support level is crucial, with on-chain metrics such as a notable increase in staking inflows and the number of long positions, indicating that traders expect ETH to rise following the launch of spot Ethereum ETFs. ETH is trading above the 20-day SMA and 50-day SMA, indicating bullishness in the short and medium term. However, as mentioned earlier, buyers must not let sellers breach the $3,400 support, as it is crucial to maintaining ETH’s upward momentum. So far, the support has held, allowing ETH to consolidate.
Source: TradingView
If ETH can consolidate above this level, it can push above $3,500 and target the next crucial level of resistance at $3,700. A break above this level can push ETH towards $3,800 as well. So far, ETH has been unable to stay above $3,500. After hitting $3,537 on Sunday, ETH fell back on Monday, dropping by 2.67% to $3,443. However, buyers were able to push ETH back up on Tuesday, as it rose by 1.21% to $3,484. The current session sees ETH down by just over 1% as sellers look to breach $3,400. The RSI currently sits at 59, indicating it is in a neutral zone.
Solana (SOL) Price Analysis
Solana (SOL) managed to stay above $170 despite sellers driving the price down considerably over the past couple of sessions. Whale activity has also picked up, with SOL’s 24-hour trading volume registering an increase of almost 7%. SOL had been highly bullish until the weekend but could not push above the resistance at $185. The price had registered a significant bump on Friday, rising by 6.30% to settle at $169.29. Saturday saw SOL push above $170 with a 2,32% increase, pushing it to $173.73, and a 6.20% increase on Sunday allowed SOL to climb to $184.50, just short of the resistance at $185.
Source: TradingView
However, sellers were expected to defend this level, and SOL fell back on Monday, dropping by almost 3% to $170.04. SOL continued to drop on Tuesday as sellers attempted to push it below $170. However, they were unable to do so, so SOL settled at $173. With strong support at $170, SOL is up during the current session and trading at $176.91. If buyers continue to maintain bullish momentum, SOL could test $185 again. A break above this level could open the doors for a potential move to $200. However, sellers will defend this level and look to drive SOL down to $170 or below. The RSI is currently close to the overbought zone, sitting at 62 while widening Bollinger Bands suggest SOL may face volatility in the short term.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has continued to drop since climbing above $8 over the weekend as sellers look to push the price below $7.60. After dropping to $7.83 on Thursday, UNI rebounded and rose by 2% to $7.99, just shy of the $8 level. Facing strong selling pressure, UNI was able to only register a marginal increase on Saturday, allowing it to push above $8. The price faced intense selling pressure on Sunday as sellers attempted to drive UNI back below $8. However, with strong demand at lower levels, UNI was able to claw back and register an increase of 1.39% to settle at $8.12.
Source: TradingView
Sellers were able to take control on Monday and push UNI below $8. UNI eventually settled at $7.81 after a drop of almost 4%. Bearish sentiment persisted on Tuesday as well. Buyers attempted a move above $8 but were unable to do so. Sellers built momentum and pushed UNI down by another 1.27% to $7.71. The current session sees bears in control yet again as they look to drive UNIL below its support level. Should UNI drop below $7.50, we could see the price slide down to $7 before stabilizing. However, buyers are expected to defend this level, meaning UNI could spend some more time trading between $7.50 and $8.
Toncoin (TON) Price Analysis
Toncoin (TON) has registered a decline of 4.25% over the past seven days. However, despite this decline, TON has displayed the potential for a bullish rebound. TON has spent most of July trading between $7 and $7.60. TON had reached $7.62 at the beginning of the previous week but fell sharply, dropping to $7.14 by Wednesday. A recovery saw TON rise to $7.30 by Friday, but a bearish weekend meant TON fell back again, dropping to $7.17. With the crypto markets registering a significant drop on Monday, TON fell as well, reporting a 2.60% drop. This meant TON lost the crucial $7 level, with sellers pushing the price even lower on Tuesday, as it fell to $6.87.
Source: TradingView
However, strong demand at lower levels allowed buyers to push the price back up during the current session. Currently, TON is up by 1.71%, with buyers attempting to reclaim $7. Over the past couple of months, TON has been between two converging trend lines, which have acted as dynamic levels of support and resistance and have significantly influenced TON’s price movement. TON has also registered substantial growth in TVL, primarily driven by DeDust and Telegram’s over 900 million users.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) witnessed an incredible surge last week, and with increasing demand for meme coins, this upward trajectory could continue in the long term. Another factor that could contribute to WIF’s bull run is that it is a Solana-based meme token. With SOL targeting $200, WIF could also witness another surge. However, WIF’s current rally has hit a roadblock for now after climbing to $2.82 over the weekend. Buyers were unable to push WIF higher in the face of growing selling pressure.
Source: TradingView
As a result, the price fell back on Monday, dropping by 2.89% to $2.73. WIF continued to drop on Tuesday as selling pressure intensified, dropping by almost 7% to $2.55. However, sellers were unable to push the price below $2.50. The current session has seen WIF recover, with the price currently up by almost 4%. So, where does WIF go from here?
WIF could pick up again once the broader markets do and look to break above $2.85 and $3. A break above this level could see a move to $3.50. However, if the price reverses, sellers could retest the $2.50 level.
SEI Price Analysis
SEI has been unable to move past the resistance between $0.35 and $0.38 and faces significant selling pressure between these levels. The cryptocurrency, which had significant upward momentum during the previous week, has spent the current week in the red as sellers exert influence over the market. SEI had registered a huge jump of 10% on Friday, rising to $0.38. A further increase of 3.30% on Saturday allowed SEI to settle just shy of $0.40. Bulls attempted a push above $0.40 but were unsuccessful, as can be seen in the price chart.
Source: TradingView
With sellers defending this level, SEI faced considerable selling pressure on Sunday, dropping to a low of $0.37. However, buyers were able to push the price back up, with SEI eventually registering a drop of 0.77%. SEI witnessed significant volatility on Monday as buyers attempted to push above $0.40 while sellers attempted to drive the price lower. Sellers eventually won out, with SEI registering a drop of almost 5% on Tuesday to settle at $0.37. The current session sees SEI down by 1.34% and facing significant bearish pressure.
If SEI manages to stay above the 50-day SMA, we could see the price recover and attempt another move to $0.40. However, should sentiment remain bearish, a drop to $0.33 looks likely. We could see the price stabilize at that level with the 20-day SMA acting as support.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
