11.07.22 - 17.07.22
Last week results
Instruments:
Bitcoin has shown an ability to recover and tested the $22,000 mark. For nearly the whole week, BTC moved up, rising by over 10% before it began to slide again just before the weekend. Altcoins, meanwhile, showed a more confident upward trend.
According to Santiment, BTC outflows from exchanges increased last week, while stablecoin inflows intensified, indicating a potential growth factor. The supply of BTC on centralised exchanges is currently at a three-year low, while the supply of USDT is rising rapidly and is currently at a more than two-year high. USDT inflows are traditionally a resource for future cryptocurrency purchases.
The long-awaited Vasil update was rolled out to the Cardano test network. It's expected to be activated in the Cardano main network as soon as this month. The update will significantly increase Cardano's performance, update the Plutus smart contract platform and enable the migration of new token types from Ethereum to Cardano.
On the positive side, the Central African Republic became the first country in Africa to legalise BTC as a payment currency. CAR President Faustin-Archange Touadéra stated that gold had been the engine of human civilisation for centuries. However, in the new era, he believes in digital gold, i.e., Bitcoin.
These week’s key events
Bitcoin has shown an ability to recover and tested the $22,000 mark. For nearly the whole week, BTC moved up, rising by over 10% before it began to slide again just before the weekend. Altcoins, meanwhile, showed a more confident upward trend.
According to Santiment, BTC outflows from exchanges increased last week, while stablecoin inflows intensified, indicating a potential growth factor. The supply of BTC on centralised exchanges is currently at a three-year low, while the supply of USDT is rising rapidly and is currently at a more than two-year high. USDT inflows are traditionally a resource for future cryptocurrency purchases.
The long-awaited Vasil update was rolled out to the Cardano test network. It's expected to be activated in the Cardano main network as soon as this month. The update will significantly increase Cardano's performance, update the Plutus smart contract platform and enable the migration of new token types from Ethereum to Cardano.
On the positive side, the Central African Republic became the first country in Africa to legalise BTC as a payment currency. CAR President Faustin-Archange Touadéra stated that gold had been the engine of human civilisation for centuries. However, in the new era, he believes in digital gold, i.e., Bitcoin.
Bitcoin is bouncing back
Bitcoin is trending upward, and BTC has consolidated above $20,000. It's quite a positive signal despite the pressure. The cryptocurrency could even test and slightly overcome the strong $22,000 resistance level.
Here are three reasons to buy Bitcoin right now:
● Glassnode analysts believe that a more dovish policy from the US Fed due to a sharp economic deterioration could be a surprise for crypto markets and BTC. Markets are only considering an aggressive series of actions by the Fed, but it could be that with the regulator's new dovish rhetoric, the market will resume growth sooner than many expect.
● With the value of BTC declining, the purchasing power of USDT has increased, meaning that more cryptocurrency can now be bought with stablecoins. The stablecoin's capitalisation relative to BTC's continues to rise, which is a strong indicator of potential growth. The supply of stablecoins on exchanges is showing accumulation, while BTC is seeing an outflow and shortage. Data from Santiment show USDT supply to be at its highest in the past two years, while BTC's supply is at a four-year low.
Fig. Bitcoin and USDT supply on exchanges. Source: Santiment
● Technical analysis: Bitcoin has consolidated above the $20,000 level forming an uptrend. This means we can expect further movement to the $22,000 mark (the local high as of 8 July 2022). If this level is overcome, it's worth opening long positions with a target of $25,200.
Seize this opportunity to open a trade at the right time.
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