Bull side is holding firm to the $20,000 region while most traders are confident that the price will remain range-bound for at least another six months.


Chart /USD – 1 hour | Source: TradingView

US Stocks

US stocks rose slightly, ending the session on Wednesday (July 6), the Dow Jones index rose 69 points (equivalent to 0.23%) to 31,037 points. The S&P 500 Index added 0.36% to 3,845. The Nasdaq Composite added 0.35% to 11,361 points.

The S&P 500 and Nasdaq Composite rallied for three consecutive sessions. This is the S&P 500's first three-day rally since the end of May 2022.

Markets recovered after the Fed released the minutes of its June meeting, which showed the central bank was committed to reducing inflation. Fed members said the July 27 meeting could also see a move to raise interest rates by 50 or 75 basis points to achieve the Committee's goals. In particular, participants judged that an increase of 50 or 75 basis points would be appropriate for the next meeting.

Energy stocks were among the biggest losers of the session, as oil prices continued their recent plunge.

U.S. bond yields continued their gains in the session after the release of minutes from the Fed's meeting, in line with expectations that the central bank will turn more aggressive.

Investors continue to worry about whether the economy will fall into a recession after the 10-year US government bond yield fell below the 2-year bond yield. The historical bond yield curve is a warning sign that the economy may be falling into a recession.

However, some analysts on Wall Street said the market is still unlikely to fall into a recession. Meanwhile, the Institute for Supply Management (ISM) PMI data came in better than expected, although the report suggests growth will slow and Job Openings are also higher than expected. , with more than 11 million jobs.

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Contrary to the rally of stocks, oil price fell 2%, to a 12-week low in Wednesday's session (July 6), following the decline in the previous session, when investors were increasingly worried about demand. energy demand will be affected by the possibility of a global recession.

Ending Wednesday's session, the Brent oil contract fell $2.08 (about 2%) to $100 a barrel. WTI oil contract lost 0.97 USD (equivalent to 1%) to 98 USD/barrel. Both contracts closed at their lowest levels since April 11. Technically, they are in the oversold zone for 2 consecutive sessions.

Meanwhile, the US dollar index (DXY), is consolidating just below a fresh 20-year high, above 106. Analyst Michaël Van de Poppe said:

“It's the first time we've seen such a rebound after a sharp correction. So is the strength of the stock market. Wouldn't be surprised if this continues in the coming period, although the overall sentiment is extremely bearish."


US Dollar Index (DXY) Chart | Source: TradingView

Bitcoin and Altcoins

Trading in the cryptocurrency market was relatively quiet on July 5, as the ecosystem continued to deal with the fallout from the Three Arrows Capital scandal and Voyager Digital announced that it had filed for bankruptcy protection. assets under Chapter 11.

Data from TradingView shows price (BTC) already All-day movement around the $20,000 support, with a low of $19,775 and an intraday high near $20,700 on a trading volume of $25.48 billion.

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A notable pattern on the chart prior to the pullback, which occurred in November 2021, was pointed out by crypto analyst and Twitter user nicknamed Mustache. He posted the following chart showing the similarities between each drop.

"BTC used to complete the same pattern every time a downtrend appeared, but the descending triangle is getting smaller and smaller. Another bearish breakout is forming and the target will be between $14,000 and $16,000.”


BTC Price Chart | Source: Mustache

Renowned market analyst, Peter Brandt, also recently tick pennant pattern on the Bitcoin chart, but does not indicate which way the price might move once the pattern completes.

According to crypto research firm Delphi Digital, Bitcoin has now closed below its 200 weekly average for four weeks in a row, signaling previous market bottoms.


Bitcoin price performance since January 2020 | Source: Delphi Digital

As for whether Bitcoin traders should expect a quick recovery, Delphi Digital noted “this is the longest period BTC has stayed below its 200-week moving average” and highlighted the fact that, “the system Bitcoin's weekly correlation number continues to be inversely proportional to the USD hitting a 17-month low of -0.77.

While the strong USD shows that Bitcoin price will continue to struggle along with other assets, Delphi Digital thinks that BTC adoption continues to increase, and that is encouraging.

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“While the price continues to fall, the number of addresses accumulating BTC continues to grow. Addresses holding at least 1 BTC have hit a new ATH of 877.501.”

Market analyst and Twitter user nicknamed KALEO, gave a look overview Take a look at Bitcoin's past performance and post the following chart outlining previous market cycles.


BTC/USD Chart – 3 Days | Source: KALEO

Based on the chart and forecast line provided, Kaleo thinks the market will continue to trade sideways for the foreseeable future and will be “determined by a Crab pattern above the HTF logarithmic support.

“Most likely the underlying range of $16,000 to $30,000 has been established, the market will be able to break out of this range in December, when the price finally breaks through the HTF crossover resistance.”

also bounced as Bitcoin held firm in the $20,000 region. Leading the way is Storj (STORJ) having added 17.9% in the last 24 hours, erasing the week's losses with a recovery of 8.5%. Followed by () and The () when together increased more than 8% during the day.

() has also followed Bitcoin's rally, bouncing up near 4% and currently trading around $1,183.


Source: Coin360

Investor sentiment also gradually stabilized, as the Fear and Greed indicator remained at 18 for the past 2 days. While still in the “extreme fear” zone, the indicator has rallied strongly since bottoming out at 6 in June 2022.


Source: alternative.me

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