Cointree Crypto Market Update - July 15th 2020

Market update for traders

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The largest cryptocurrency by market cap has retreated into a narrow price channel after last week’s run to $13,600 AUD, and now finds itself flirting with the low $13,000 region.

Bitcoin’s ever shrinking volatility is now at record lows, which historically indicates that a big move in the cryptocurrency is fast approaching. The indecisive nature of bitcoin’s price action was best illustrated this week as it fell back within a tight range contested for many weeks. Key moving averages on the 4hr have provided both resistance and support over the past 7 days with neither being held for long - on the daily chart, bitcoin is being squeezed like a vice by the 50 & 100 EMA’s which suggests decision time is imminent.

Bulls paying attention to the weekly chart will notice that bitcoin is creating a huge falling wedge that could propel the market through stiff overhead resistance, but bears would point out that whenever buyers appear in the low $13,000’s, sellers take back control in a see-sawing battle.

In the broader picture, Gold rallied to heights not seen since 2011, and it will be interesting to see if the anxiety over further COVID lockdowns will either buoy or sink the crypto markets in line with US equities this week.

As bitcoin chops, some alt-coins have been roaring. Cosmos is up 27%, stellar 25%, and chainlink powering up again with a 32% rise.

Market update for beginners

The largest cryptocurrency by market cap has had a flat week after last week’s run to $13,600 AUD, and it now finds itself flirting with the low $13,000 region.

The indecisive nature of bitcoin’s price action was best illustrated in the past 7-days as it couldn’t make a move up or down greater than 3%, and we now sit in an area contested for weeks. Historically, when bitcoin goes sideways for long periods of time it is a foreshadow of a large move in either direction.

Usually strong moving average indicators on lower time frames have been sliced through like butter over these 7 days, further reinforcing market indecision - and on the higher time scales, bitcoin appears to be getting squeezed like a vice between powerful moving averages.

Key takeaway: Buyers (bulls) will be watching eagerly for the ceiling of the indicated range, roughly $13,400, to break, and sellers (bears) will be licking their lips in anticipation if price crashes through $13,100 with gusto. Either way, we should get an answer soon.

In the broader picture, Gold rallied to heights not seen since 2011, and it will be interesting to see if the anxiety over further COVID lockdowns will either buoy or sink the crypto markets in line with US equities this week.

As bitcoin remains flat, some alt-coins have been roaring. Cosmos is up 27%, stellar 25%, and chainlink powering up again with a 32% rise.