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Market Analysis: BTC, ETH & BAT - The evolution of the market during the past week was quite negative. Bitcoin is now trading just below the level of USD 20,000. What can we expect next? We'll break this down later in the article but first, let's go over the main industry news.

Market Analysis: BTC, ETH & BAT

The evolution of the market during the past week was quite negative. Bitcoin is now trading just below the level of USD 20,000. What can we expect next? We’ll break this down later in the article but first, let’s go over the main industry news.


NEWS

News is one of the factors that impact cryptocurrency prices. It is important for every trader to stay up-to-date with the latest developments in the sphere. We’ve hand-picked some of the most interesting ones for you:

Bitcoin ‘tourists’ have been purged, only hodlers remain: Glassnode

So-called “market tourists” are fleeing from Bitcoin (BTC), leaving only long-term investors holding and transacting in the top cryptocurrency, according to blockchain analytics firm Glassnode.

In its July 4 Week Onchain report, Glassnode analysts said June saw Bitcoin have one of its worst-performing months in 11 years, with a loss of 37.9%. It added activity on the Bitcoin network is at levels concurrent with the deepest part of the bear market in 2018 and 2019, writing:

“The Bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely purged from the asset.”

Source: https://cointelegraph.com/news/bitcoin-tourists-have-been-purged-only-hodlers-remain-glassnode

 

Celsius pays down 143M in DAI loans since July 1

Celsius (CEL) has repaid a substantial amount of its outstanding debt to Maker (MKR) protocol since the beginning of the month, signaling that the troubled crypto lending platform was trying to stave off a complete collapse amid credible rumors of insolvency.

Since July 1, Celsius has repaid $142.8 million worth of Dai (DAI) stablecoins across four separate transactions, according to data from DeFi Explorer. The crypto lender still has $82 million in outstanding debt owed to Maker. Out of $1.8 billion in lifetime investments, the firm’s losses currently stand at $667.2 million.

Source: https://cointelegraph.com/news/celsius-pays-down-143m-in-dai-loans-since-july-1

 

ECB officials prepare for ‘harmonization’ of crypto regulations: Report

The European Central Bank, or ECB, will reportedly be preparing to implement a new law by warning European Union member states about the necessity of harmonizing regulations for crypto.

According to a Sunday report from the Financial Times, the ECB was concerned about the possible regulatory overlap between respective central banks in the EU and crypto companies as officials prepare to implement the Markets in Crypto-Assets, or MiCA, framework. The European Parliament, European Commission, and European Council reached an agreement on June 30 to bring crypto issuers and service providers within their jurisdictional control under a single regulatory framework.

Source: https://cointelegraph.com/news/ecb-officials-prepare-for-harmonization-of-crypto-regulations-report


Bitcoin Analysis

Bitcoin Analysis chart

Last week was once again negative for Bitcoin, but we can still see that BTC managed to hold above 19200 in the weekly close, which is rather good news.

If we look at the chart on a very long-term horizon, monthly, it is the biggest red candle since 2011 with a loss of more than 37%. Traditionally, this happens when BTC is near the bottom but we will refrain from jumping to conclusions.

A test of 13k is still not out of the question and we will remain cautious until BTC breaks above $24k.


Ethereum Analysis

Ethereum Analysis chart

As you know, when BTC moves in one direction, it is almost impossible for ETH to move differently. Ethereum is still trading below its resistance zone between USD 1.220 and USD 1.360 and we will not open a new position until this zone is broken to the upside.

The daily technical situation is now rather positive with a buy signal given by the WaveTrend and a MACD that has continued to move positively since the end of June.

However, as long as we are below the upper limit of the resistance, which coincides with the wilder average, we will refrain!


Altcoin of the week: Conditional long on BAT

Altcoin of the week: Conditional long on BAT chart

The BAT/USDT pair is proving resilient and has rebounded well from the USD 0.25 level to now trade at USD 0.42, up over 60%.

If BAT manages to tag the USD 0.54 – 0.57 level, then we can open a buy position on a retest of the support area.

In the meantime, be careful!

Do not overexpose yourself, as usual.


Conclusion

Market sentiment can reverse very easily on cryptos as we just saw this week again. Careful though, as long as we don’t have confirmation, we must base our decision on fact and for now we must be patient.

There is nothing more important for success in trading. Plan the trade and trade the plan! As simple as that. In fact, don’t be tempted to take dangerous positions and wait for confirmation.

I’ll see you next week, take care of yourself!

Have a great week everyone!

 

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