Bitcoin (BTC) delivered one of its weakest first-half performances since 2018, gaining just over 20% in 2021. In previous years, the bellwether cryptocurrency had surged 27% and 187% in the first halves of 2020 and 2019, respectively.
June saw Bitcoin suffer its third straight month of losses. Although June's monthly candle was not as devastating as the one from May, which historically was one of its worst on record, most investors are still reeling from their losses of May 19th and are undecided about Bitcoin’s future direction.
Bitcoin price has been range-bound since May 19, with prices establishing a foothold above $30,000 over the past week. Although the range lows have been shifting lower, the range high seems untouched for more than a month.
Despite the range-bound activity, the BTC dominance index marginally declined over 3% in the past week to 45.5%. The index, which measures Bitcoin’s market value relative to the entire crypto market, has made a remarkable comeback since the crash of May 19th, with altcoins performing much worse in this current correction phase.
As of Monday morning (UTC+8), Bitcoin is changing hands at $34,590, up 5.7% on a 7-day rolling basis.
In the previous report, we analyzed the false breakout pattern that Bitcoin had formed since hitting the June 22nd low of $28,800. Since then, BTC’s recovery has been constructive, rallying over 20% to $34,590 at press time.
If BTC’s price could register a decisive close above $36,600, it might pave the way for the start of an upswing. Therefore, investors can expect Bitcoin to retest $42,451 after slicing through the intermediate resistance levels at $36,600 and the dynamic 50-EMA resistance. On the flip side, a failure to do so will result in a pullback towards the $31,800 demand zone, which will indicate that the sellers are in control.
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Altcoins made a significant recovery following weeks of underperformance. For example, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, surged over 17% over the past week to hit $2,270 on Monday morning (UTC+8).
The week’s highlight came when Skybridge Capital founder Anthony Scaramucci revealed his company's plan to create a $25 million private Ethereum fund, a companion to the $25 million Skybridge Bitcoin fund. Additionally, the company also stated ambitions to pursue an Ethereum ETF; they previously applied for a Bitcoin ETF.
Since the low of June 22nd, ETH has been on a strong recovery path, rallying to a two-week high at $2,347 as investors remain cautiously optimistic about the upcoming London hard fork.
Ethereum has a slew of pending upgrades that could divert ETH back to its bull-course. The upcoming ETH 2.0 upgrade will bring significant improvements to the network. These reforms would improve transaction speed while significantly lowering the cost of moving assets across the network. With lower costs, the network would become more accessible to people who could not previously afford to use it. This increased use will help to strengthen Ethereum's decentralized financial ecosystem and, as a result, its price.
A potential spike in buying pressure that pushes ETH to slice through the 50-EMA will confirm the presence of buyers. In such a case, investors can expect the smart contract token to retest the supply barriers at $2,750.
Another major mover is Cardano (ADA). ADA gained over 9% in the past week to $1.426 at press time after Grayscale added Cardano to its Digital Large Cap Fund.
Grayscale's investment vehicles enable the general public to have a stake in cryptocurrencies such as Cardano without actually possessing them. With the Grayscale inclusion, Cardano would become more accessible to investors. Cardano currently accounts for 4.3% of the fund, which consists of 67.9% Bitcoin and 24.9% Ethereum.
As a result, ADA contracts on Binance recorded a significant uptick in volume and open interest. Volume for ADA contracts rose to $5 billion, while open interest rose from USDT 90 million to USDT 120 million. Trade Bitcoin, Ethereum, BNB Futures, and many more on Binance. Sign up now!Market Movers on Binance Futures
With the increased trading activity and volatility, Binance Futures’ perpetual contracts have provided alternative venues for traders and investors to capture trading opportunities.