The crypto market currently seems to be completely out of touch with risky assets on the stock market and it is difficult to say whether or not this will be profitable during bitcoin, which has been building a trading range for a month now under the extreme resistance of 31,000 and 32,000 dollars.
https://cryptoast.fr/feed/
Bitcoin, attention à ne pas manquer le coche avec un surachat massif sur le marché actions
The US equity market and technology are in a situation of massive overbought
“Be careful bitcoin not to miss the boat, otherwise you will expose yourself to a powerful backlash! This is exactly the sentence I could say to BTC if the latter were a conscious person, I would give him this warning because he is currently taking a significant risk.
It has now been a month since the crypto market has been stable under major resistance, having benefited from the bullish impulse generated by the news around bitcoin ETFs seeking validation from the SEC, the American stock market regulator.
👉 What is a Bitcoin ETF?
During this past month, the other asset classes have developed very marked trends, here is a summary:
The US equity market has approached its all-time highs, those set in December 2021, with the S&P500 index now in contact with major resistance at 46,300 points; The reservoir of retail buyers, according to AAII data, is now filled to the brim (see the lower left inset on the first chart below);
The S&P 500 Technology sector index has even set new all-time highs, forcefully and crashing above the peaks of December 2021 (imagine in terms of equivalent, it’s a BTC at $70,000) and is massively overbought;
The US Dollar hit a new yearly low against a basket of major currencies, including new highs in EUR/USD and GBP/USD; Interest rates failed to recover from levels that triggered the banking shock last March. Buying Cryptos on eToroCryptocurrency investing is offered by eToro (Europe) Ltd as a PSAN registered with the AMF. Investing in crypto-assets is highly volatile. There is no consumer protection. Investing is risky (find out more)
All the trends that I have just described above should have allowed the crossing of the resistance on the price of bitcoin. It is now a matter of time for BTC and time is against it.
As next week sees another Fed fund interest rate hike and the publication of GAFAM quarterly results, bitcoin should be aware that it will no longer have the support of its usual correlations.
So if he continues to procrastinate, he will be subject to the risk of correction.
Chart produced with the TradingView site and which reveals the Japanese candles in daily data of the S&P500 stock market index, as well as the latest positioning of US retail traders according to data from the American Association of Retail Investors (AAII)
An essential tool for traders?
30 day free trial
Bitcoin price will make its technical decision imminently
Let’s now return to the analysis of the price of bitcoin and the main chartist thresholds to watch:
The major resistance at $32,000 is known to all and remains the dominant chart factor; The short-term trend technical pivot stands at $29,500; If this support is broken, the market will correct towards $28,000; We would need to break above the intermediate resistance at $30,500 to restart the upside.
The technical choice of BTC will be made between this Thursday, July 20 and the FED’s decision on Wednesday, July 26.
Chart made with the TradingView site and which displays the Japanese intraday candles (H4) of the price of bitcoin (BTC / USD)
Take your investments to the next level with the analyzes of Vincent Ganne
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Vincent Ganne is a market strategist, technical analyst, trainer on the stock market and speaker on BFM Business. With a long experience in the field of analysis, he offers a global approach to financial markets. Both from a macroeconomic point of view and from a microeconomic point of view. Vincent Ganne also uses many aspects of chart analysis with the aim of forecasting trends in financial assets over the medium and long term.
Vincent Gane
138 items
