Bitcoin was down 7.2% on Thursday, ending it at around $18,800. Ethereum lost 8.7%, while other leading altcoins in the top 10 fell from 4.4% (BNB) to 10.6% (Dogecoin). However, Bitcoin greeted the new day, month and half-year with buying. In a thin market early in the day with Asia predominantly active, this spurred the price up 11% to $20,800, quickly deflating to $19,400.

In other words, we see attempts to create the appearance of buying the dip in bitcoin. Still, the rise in price entails increased selling - a typical sign that institutional and market professionals are “dumping” the asset to retail investors guided by the price chart.

By Friday, the cryptocurrency fear and greed index remained unchanged at 11 points (“extreme fear”).

Bitcoin intensified its decline on Thursday after breaking the $20,000 level. BTC tested 11-day lows near $18,600 amid a plunge in stock indices.

Last month was one of the worst for bitcoin, with BTC losing 41% of its value, falling short of historical trends.

In terms of seasonality, July is considered a relative success for BTC. Over the past 11 years, bitcoin has ended the month up seven times and down four times. The average rise was 22%, and the average decline was 9%. In the first case, BTC could end July at around $23,000. In the second, it could end July at about $17,000.

According to Deutsche Bank, Bitcoin could recover to $28,000 by the end of 2022 on the back of a likely rally in US equities.

JPMorgan Bank believes the crypto market could bottom out soon, after which bitcoin and other crypto-assets will consolidate. Most traders with margin positions have already washed out of the market.

We continue to maintain our position that there remains a sellers’ advantage, and the slowest of them will be careful to sell the crypto market on upside attempts.

According to BitInfoCharts, bitcoin’s fall from historic highs has stripped some 75% of investors (82,600) of their millionaire status.

Pantera Capital founder Dan Morehead is confident that it’s too early to talk about a “bottom” of the market. He expects several more defaults by companies in the sector shortly - similar to the story of Three Arrows Capital.

OTC cryptocurrency dealer Genesis Global Trading could face hundreds of millions of dollars in losses due to the loss of liquidity of counterparties Three Arrows Capital and Babel Finance.

Lee Reiners, director of the Center for Global Financial Markets at Duke University in North Carolina, believes digital currencies have no real value and should be banned.


Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP