A breath of fresh air seems to be blowing through the cryptocurrency markets this week. Bitcoin (BTC) is approaching $22,000 and Ether (ETH) is also on the rise. Will the trend continue? We interviewed analyst Prof Chain.
Bitcoin (BTC) to $22,000 Soon?
In the middle of the bear market, the price of Bitcoin (BTC) has chained closes in the red for weeks, raising fears of an even more significant drop in the largest cryptocurrency. This week, however, the queen of cryptocurrencies seems to have regained some strength. It shows +11% over the last seven days, and approaching the $22,000 markbriefly touched during the night:
BTC is up +21% since the start of July
With Ethereum (ETH), the development is even more significant. ether poster +17% over the last seven days, and is approaching the $1,250 mark. The other main cryptocurrencies also showed clear gains during the week, with +11% for BNB from Binance and +12% for SUN from Solana.
As a sign of this progress, the total capitalization of cryptocurrencies has exceeded $1 trillionduring the night before it drops a little:
Progression of the total capitalization of cryptocurrencies over 24 hours
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A trend that will last?
Hence a legitimate question: the prices of Bitcoin and other cryptocurrencies Will they finally go up permanently? For Prof Chaîne, on-chain analyst at Cryptoast, the pump is due to several factors:
“Liquidity is falling on the stock exchanges, and we also see strong demand due to the current price level. In addition, more than $200 million in liquidations of short positions. It combines to create a small pump for BTC. »
However, we remain on a short-term vision on the part of market participants:
“In the short term, the market makes a small profit and the number of units in profit in the chain increases slightly. Currently, the number of participants who take advantage of this increase to sell close to their break-even point and exit the market is very limited. Rather, we see a buying phase after the recent rise. »
So what can we expect? For Prof Chaîne, participants are unlikely to take advantage of this recovery to exit the market. As we have seen in recent weeks, the “strong hands” have stood out for their solidity in the face of significant selling pressure:
“The scenario of a new dead cat jump (where participants sell short-term upside during a down cycle to exit the market) is not the most likely, but cannot be ruled out. »
Caution is therefore still in order. with some traders putting the key threshold for Bitcoin at $23,000:
— Gilberto (@gilbertocrypto1) 7 July 2022
The question therefore remains: has BTC touched its “bottom”? Given the broader conditions surrounding the market, you have to keep measured facing this more positive week for rates.
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Sources: TradingView, CoinGecko
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