Weekly Analysis of BTC, ETH, and Altcoin Markets, July 8, 2024

Bitcoin (BTC)

Last week, Bitcoin continued its decline, setting a new local low at $53,571. Since then, the coin has significantly recovered and is currently trading at around $57,700. 

The current support range is between $53,500 and $55,200. Falling below this range could potentially lead the price down to $52,000. 

For Bitcoin to fully emerge from this correction phase, it must break through the seller's zone from $58,300 to $59,600 and test the $60,900 mark. Only a stable position above this level would negate the bearish efforts.

BTC H4 Chart

Ethereum (ETH)

Ethereum is trading between a support zone of $2,820–$2,900 and a resistance zone of $3,070–$3,170, following Bitcoin’s trends. 

ETH's movements are also largely dependent on Bitcoin's performance. However, fundamentally, Ethereum faces fewer negatives. For instance, unlike Bitcoin, Ethereum was not impacted by the Mt. Gox theft, which means it may not experience as much selling pressure. 

To conclude its local downtrend, ETH must break through the resistance area of $3,350–$3,500. Failing to do so may see it testing new lows below $2,700.

ETH H4 Chart

Dogecoin (DOGE)

Like most alternative coins, Dogecoin's chart resembles those of BTC and ETH. Currently, DOGE is squeezed between a support zone at $0.0917–$0.101 and a resistance zone at $0.1120–$0.1180. 

If Bitcoin’s correction persists, Dogecoin could follow suit and potentially update its low to around $0.085. 

A bullish trend reversal could only be confirmed if it solidly surpasses the $0.1230 price point, though such an event seems highly improbable.

DOGE H4 Chart

Chainlink (LINK)

Currently, Chainlink is trading between a support zone of $11.10 to $11.85 and a resistance range of $13.25 to $13.85. For LINK to resume its upward trajectory, it must surpass the $14.4 mark, signifying a strong buyer presence in the market.

Like many altcoins, LINK has not been able to sustain higher positions and has reached a new annual low.

If Bitcoin's downtrend persists, LINK could fall to the psychological level of $10.

LINK Н4 Chart

Bitcoin Cash (BCH)

Bitcoin Cash has undergone a correction of nearly 65% from its peak values. Currently, the coin has found support in the range of $256 to $291. 

To reverse the downtrend and pivot to an upward trend, BCH needs to break through the seller’s level at $342 and challenge the resistance zone between $382 and $420. 

It’s worth noting that a significant quantity of BCH was stolen from the Mt. Gox cryptocurrency exchange. Future compensations to the exchange’s clients could trigger an active sell-off, potentially leading to new global lows.

BCH D1 Chart

Stellar (XLM)

Stellar’s price recently reached the support zone of $0.067–$0.076, continuing its downward trend. 

Any potential recovery could only be considered if the asset tests the $0.107 level. 

However, the predominant scenario remains a continued decline to new lows.

XLM D1 Chart

BTC Dominance, Altcoin Season Index, and Fear and Greed Index

The Bitcoin Dominance Index has remained stable over the last week, currently at 54.80%. Bitcoin continues to maintain its leadership, attracting more interest from investors than other cryptocurrencies. Even the general market downturn and significant discounts have not shifted this trend.

BTC Dominance Index. Source: tradingview.com

The Altcoin Season Index is currently at 24 points, indicating the absence of an altcoin season, which aligns with previous assessments.

Altcoin Season Index. Source: blockchaincenter.net

The Fear and Greed Index has moved out of a neutral position, dropping 25 points from last week, and is now in the “Fear” zone. This indicates a negative sentiment in the cryptocurrency market, potentially leading to decreased interest in digital assets.

Fear and Greed Index. Source: alternative.me

Economic News

The macroeconomic landscape this week will be influenced by several key events: 

• Speech by Federal Reserve Chairman Jerome Powell (Tuesday, July 9);
• Another speech by Fed Chair Jerome Powell and crude oil inventories report (Wednesday, July 10);
• The Consumer Price Index (CPI), indicating the level of inflation in the US, and the number of initial jobless claims (Thursday, July 11);
• The Producer Price Index (PPI) in the US (Friday, July 12).

Special attention should be given to Thursday's events, as the inflation rate and unemployment figures are crucial indicators of the US economic condition, which directly affects the global economy. Other news this week may also lead to temporary spikes in market volatility.

Check out The Coinomist for the latest cryptocurrency rates and chart analysis.

Disclaimer

Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.

Abbreviations

TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.

Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.

К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).

Gray range on the chart — a support zone.

Red range on the chart — a resistance zone.

Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.

Initial materials

This analysis was informed by the following educational materials and articles from The Coinomist:

• TOP 5 Useful Chart Analysis Tools on TradingView
• How Are Trading Volumes Useful in Cryptocurrency Analysis?
• Candlestick Patterns: Types and How They Work in Trading
• The Most Popular Chart Patterns for Crypto Trading