Bitcoin, 8 July Wall Street opening saw US stocks reach new record levels, maintaining modest gains. Data from TradingView showed a struggle for Bitcoin prices above $56,000. Amid increased volatility, the spot price moved through weak liquidity over the weekend, experiencing turbulence after the 7 July weekly close and then recovering during the Asian trading session.
What Is the Current State of the Crypto Market?
The crypto market later declined again as the S&P 500 and Nasdaq Index reached all-time highs during the day, continuing to move away from risk assets. Trade company QCP Capital shared the following in a section of its latest bulletin to Telegram channel subscribers:
“Stocks and gold have been rising since the beginning of last week, but crypto prices went the other way.”
Therefore, attention focused on macroeconomic reports to be released this week and statements from US Federal Reserve Chairman Jerome Powell. Keith Alan, co-founder of trade source Material Indicators, shared the following in a section of his analysis published on X:
“FED Chairman Powell’s comments last week or some crypto-related legislation could provide a catalyst for speculators.”
What Is Expected for Bitcoin?
Like many market participants, Alan was extremely cautious when it came to Bitcoin, warning that new macro lows could still easily form. Alongside a chart featuring one of Material Indicators’ proprietary trade tools showing key support lines, he explained that the market could test the $48,000 level:
“If this happens, a quick recovery above $50,000 will be critical to prevent a drop to test support at the 2-year trend line.”
Alan noted that a 40% drop from the all-time high of $73,800 in March was something Bitcoin had been following since its block subsidy halving event a month later. Popular trader and analyst Rekt Capital continued by comparing the current decline to the drop so far:
“This pullback is not only the deepest retracement of the cycle so far. It has also officially become the second-longest pullback in the cycle.”
