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BTC weekly outlook; ETH, XRP, ADA, AAVE ideas

05 Jul, 2021 Martin Petkov
BTC weekly outlook

Hello and welcome, everyone. It's Martin here at CryptoGains. Let's begin with the five keys things driving bitcoin during this week.

First of all, we have stocks at record highs. Of course, remember that today, the stock markets are closed due to the holiday for the Fourth of July. But nonetheless, it seems that a lot of money has moved into stocks away from cryptocurrencies.

In addition to that, the fundamentals aren't still completely out of the woods, meaning that they have not fully recovered. And, the hashrate, in particular, has been dropping quite significantly as the exit of miners from China continues.

Nonetheless, what's interesting to observe is that the mining difficulty at present is similar to the levels after last year's halving event. Yet, the price of bitcoin is 263% higher, which illustrates how incredibly profitable bitcoin mining has become for efficient miners.

In addition to that, it seems that there is very strong resistance around $36,000. So watch for that level as you trade bitcoin. The volume also fails to build the bull case simply because volumes of bitcoin have still not recovered to the levels where they were before the May crash. 

And finally, some analysts are suggesting that investor confidence is slowly returning. However, some analysts are a bit more bullish, suggesting that currently, the market is experiencing a state of a supply shock. If there is not enough bitcoin, and strong hands continue accumulating as the price is in that range. This is called a divergence where we have buying from strong hands and decreasing prices, suggesting that a big breakout may occur very soon.

Also, some significant moves with regards to ripple. While it keeps trading at the $0.60 to $0.70 level, and we're going to discuss how we can trade it in more detail in a few minutes. And also, cardano, even though it's still consolidating, there are some very positive developments on the network with the reach of the staking addresses reaching 600,000, which is very significant milestone that was reached in June and indicates that the network is running very rapidly. And finally, Aave is launching permissioned deployment for institutions in July, which, of course, is going to drive prices higher and increase institutional demand, as well.

Now moving to the technical charts, let's begin with bitcoin. After touching $36,000, bitcoin experienced a very sharp drop this morning. To me, the dividing line remains at $34,400. Above that level, I look to buy bitcoin, with targets at $35,200 and $35,900. Conversely, below $34,400, I'd look to sell Bitcoin with targets at $33,400 and $32,800.

Now we're moving to ethereum. Above $2260, to me, ethereum presents very good buying opportunities, with targets at $2335 and $2385. Conversely, however, if we're unable to sustain the $2260 level, we could see declines to $2200 and $2100.

Now let's take a look at ripple. I like to buy ripple above $0.67, with targets at $0.70 and $0.725. However, if we break below %0.67, you could see more declines, with reasonable targets on the short side at $0.65 and $0.63, which are the mid- and longer-term support areas.

And now, let's move to cardano. The dividing line for cardano is $1.415. Above that level, opportunities to buy cardano, with targets at $1.45 and $1.49. Conversely, however, if we break the support at $1.415, we can see more decreases, with reasonable targets on the short side at $1.386 and $1.35.

And finally, let's take a look at aave. Aave is struggling with long-term resistance at $276. So I'm waiting for a break above that level before initiating long positions in aave, with targets at $283.50 and $289. However, below $276, I'm seeing good opportunities to sell aave, with targets at $268 and $250 on the short side.

Thanks for joining me today. Keep learning with the video education section in the CryptoGains Market Insights subsection. Remember to join the Crypto Signals Made Easy channel for insightful articles and trading ideas.

Thanks for joining me today. Trade wisely, and I will see you soon. 

Bye-bye

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