Bitcoin and popular altcoins were bullish throughout the week as the Fed raised interest rates another 75 basis points. BTC and Ethereum are currently trading above the $24,500 and $1,700 resistances respectively. Let’s take a look at the predictions of 6 crypto money experts for an overview of the first week of August.
Analysts’ expectations from the Bitcoin and altcoin market for the coming week
Analysts of the popular Youtube channel AltcoinBuzz are expecting a close above $24,700 in BTC price. Experts expect consolidation between $22,200-$23,800 after Bitcoin experiences rejection at these levels.
However, stablecoins will lose some volume due to rising crypto prices. According to AltcoinBuzz analysts, especially popular altcoins will follow Bitcoin’s movements as USDT loses volume. On the other hand, weekend trading is still uncertain as the market trend often changes by a large margin. Therefore, a correction should be on the lookout, which could squeeze all the profits from last week, according to analysts. Another expert in attendance was popular on-chain analyst Will Clemente.
What awaits the cryptocurrency market, according to Will Clemente?
Blockware Intelligence analyst Clemente, whose analysis we share as Kriptokoin.com, discussed the combined market capitalization of Tether (USDT) and USD Coin (USDC) in his latest analysis. The analyst notes that when the market cap of the two stablecoins is low compared to the general market, the macro peak may be imminent as there are limited new buyers. He emphasizes that the opposite is also true:
Conversely, when the rate reaches the top of the channel, it indicates a large amount of dry dust on the edge relative to the total market cap of the crypto. The higher the market, the more likely market participants are to be encouraged to follow. The rate started to roll after the channel aired this last month when it reached its peak.
The chart above shows that BTC reached one of the furthest divergences from the 200-day MA last month, Clemente said. This suggests that Bitcoin may be in the midst of forming a bear market bottom. According to Clemente:
Bitcoin (BTC) has only been this low (<2%) below its 200-day moving average a few times, each of which seemed scary to buy right now, but in retrospect it was terribly obvious…
Senior analysts assess the long-term outlook for Bitcoin and altcoins
Some analysts, including FxPro market analyst Alex Kuptsikevich, say the recovery comes amid demand for risky assets and the dollar’s pullback from multi-year highs. Alex Kuptsikevich’s analyzes on this issue were:
However, it is long-term and works against all picture buyers. As we see monetary and economic conditions tighten, the crypto market has to move against the current.
Some analysts noted earlier this week that it increased buying pressure on cryptocurrencies. The Fed increased rates by 75 basis points in an expected move on Wednesday. Thus causing a run in the crypto and equity markets. Streetbeat CEO Damian Scavo assesses the impact of this environment on cryptocurrencies:
The economy saw the 75 basis point gain as a bold move that could help slow inflation faster. Crypto is starting to relate to the stock market and the global economy in general. This means that the crypto market has reached a certain level of maturity.
Mikkel Mørch says cryptocurrencies follow the dollar
Mikkel Mørch, managing director of ARK36, says traders are already expecting lower hikes, which has contributed to the recovery especially since last week:
The Fed specializes in communicating its position in advance to avoid a backlash from the markets after policy decisions are announced.
Mørch adds that the firm monitors the strength of the US dollar, which can influence the price movements of cryptocurrencies:
There may be some upside right now, as the next hike won’t come until September. But that will depend on the strength of the dollar and the broader macro environment.
Meanwhile, not everyone is convinced on the upside
Chris Terry, vice president of SmartFi, shared why his firm expects a decline in the current macro environment:
Not much will happen until the economy breaks down or crashes. We predict that Bitcoin will continue to trade in this tight range of $20,000 plus or minus 10 to 15 percent….None of this should come as a surprise. We could stay in this stagnant market for weeks. Boring.
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