25.07.22 - 01.08.22
Last week results
Instruments:
💡Last week, Bitcoin made an attempt to recover and managed to finish the week 1.9% higher. Miners are still selling Bitcoin off to compensate for their operational expenses. Still, some altcoins are already showing quite a robust recovery.
▶️ Bitcoin is supported by small holders that have been buying up what miners are selling off. The number of addresses with a balance of 0.1 BTC and higher is steadily growing, but this trend saw rapid growth in mid-July 2022.
▶️ Institutional investors are also adding to the crypto market's bright side. Despite crypto's negative dynamics, Safe, the platform for managing digital assets (formerly named Gnosis Safe), has raised $100 million in a strategic financing round.
▶️ Expectations of another steep rate hike by the US Fed and subsequent actions by other central banks are crucial risk factors for the crypto market.
These week’s key events
💡Last week, Bitcoin made an attempt to recover and managed to finish the week 1.9% higher. Miners are still selling Bitcoin off to compensate for their operational expenses. Still, some altcoins are already showing quite a robust recovery.
▶️ Bitcoin is supported by small holders that have been buying up what miners are selling off. The number of addresses with a balance of 0.1 BTC and higher is steadily growing, but this trend saw rapid growth in mid-July 2022.
▶️ Institutional investors are also adding to the crypto market's bright side. Despite crypto's negative dynamics, Safe, the platform for managing digital assets (formerly named Gnosis Safe), has raised $100 million in a strategic financing round.
▶️ Expectations of another steep rate hike by the US Fed and subsequent actions by other central banks are crucial risk factors for the crypto market.
📈 Bitcoin forms a bottom
Bitcoin (BTCUSDT) is once again returning to the support level of $21,700. If it can't pass this level, we could expect a new wave of growth towards the recent local high of $24,000. Overall, the week's news seems fairly optimistic.
Here are three reasons to buy Bitcoin right now:
🔹 Waves of conversion of stablecoins to fiat currency and outflows from crypto ETFs have gone down. This signals that panic in the market is nearing its end. The catalyst for this dynamic is a reduction in uncertainty about the amount of mutual risk players face in the industry once some of them begin to reorganise.
🔹 Looking at the structure of hodlers' coins, one can see that the share of coins older than 3 months, i.e. coins acquired before the Terra project collapsed, is increasing. The indicator has nearly reached 80%, and the trend continues to strengthen. This is a sign that the market is moving toward sellers losing steam and buyers believing in Bitcoin being able to resume upward movement.
Fig. Coin structure in hodlers' wallets. Source: Glassnode
🔹 ТTechnical analysis: Bitcoin's (BTC/USDT) rebound from the support level at $21,700 should be seen as a buying opportunity with a target at $24,000. If the price moves past this level, you may want to consider buying more.
❗️ Seize this opportunity to open a trade at the right time.
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