$BTC 24 Hour High $32,001
$BTC 24 Hour Low $31,262
$ETH 24 Hour High $1977
$ETH 24 Hour Low $1874
Happy Monday from HKbitEX! Once again a familiarly boring week, with the majority of tokens trading in a descending pattern. The lack of clear direction remains as the markets remain unable to find a significant breakthrough with $BTC trading largely between 31k and 33.5k. Some additional colour on Binance’s increasing regulatory scrutiny: they have now received a warning from the SFC, our local regulator. Do bear in mind that the GBTC shares unlock has started this week and eyes are all on how the market will respond in light of the bearish sentiment. I’m sure you guys can probably guess that my 2 cents will remain as don’t engage in active trading, and as usual, stay away from leveraging and trade with your stop-loss.
The $BTC and $ETH market
$BTC is down by around 7.2% over the week, trading mainly between $31k and $33.5k. It started the week by losing about $2000 and then trading below $32,500, though the bulls soon defended the $33k level. However $BTC was unable to maintain that level and ended up in another dip, the lowest for 3-weeks’, at $31K. The low trading volume, together with the coming GBTC unlock, has silenced majority of the players and the bearish market sentiment has brought $BTC towards the apex of a descending triangle channel. Looking at the short-term, $BTC will need to overcome the $33.5k major resistance level and close a daily candle above there to regain its bullish momentum. The other indicator that we might look at is the daily RSI: a breakthrough over the long-term descending trend line established since May would act as another boost to the $BTC market. At the time of writing, $BTC is trading at $31,730 with $33,500 as its next major resistance level, and $30,000 as its next key support level.
$ETH-wise, the second largest cryptocurrency lost 17.6% in value over the week. Since falling below its 20-day MA on Monday, $ETH has been trading in a descending triangle pattern and testing the lowest $1,850 level. Luckily the bulls were able to defend that level and $ETH soon regained its support at $1,900 and traded between $1850 and $2000 for the remainder of the week. Meanwhile, when comparing $ETH with $BTC this week, the $ETH/$BTC ratio continues its descending price pattern, hitting lowest 0.0584 from 0.0624 , meaning $ETH is now performing worse than $BTC. However, the market is still generally optimistic towards $ETH due to the coming London Hard Fork, as well as the increasing ETH2.0 staking balance which counts for more than 6.4m at the moment. At the time of writing, $ETH is trading at $1,904 with $2,050 as its next major resistance level, and $1850 as its next key support level.
According to S&P Dow Jones Indices’ website last Tuesday (13/7), S&P Dow Jones Indices launched 5 cryptocurrency index products. One of them, S&P Cryptocurrency Broad Digital Market Index (BDM) includes over 240 coins. The website stated that the “Index is meant to reflect a broad investable universe” and “The S&P Cryptocurrency Indices were created to bring transparency to this dynamic new market”.
The cryptocurrency asset manager Grayscale Investments announced last Tuesday (13/7) that it has signed an agreement with The Bank of New York Mellon (BNY Mellon) to allow BNY Mellon to provide Grayscale Bitcoin Trust with asset servicing and ETF services. Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon also added that “It was another critical milestone in their rapidly growing digital asset capabilities and broader strategy of putting client choice at the center of everything we do."
According to Coindesk last Friday (16/7), Bank of America will allow a selective group of their clients to trade Bitcoin futures. The bank also launched a new research team dedicated to covering the crypto market as previously reported. Candace Browning, head of global research for Bank of America emphasized that “Cryptocurrencies and digital assets constitute one of the fastest growing emerging technology ecosystems”. As a side note, Bank of America is not the first investment bank to offer Bitcoin futures trading. Other banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc., has allowed certain clients to trade Bitcoin futures.
According to a filling with U.S. Securities and Exchange Commission (SEC) last Friday (16/7), SoftBank Group will invest $75M in cryptocurrency exchange, Bullish. Apart from Bullish, SoftBank Group had also invested $200 M in Mercado Bitcoin, the Brazil’s leading cryptocurrency exchange. “Cryptocurrencies can no longer be ignored due to their growing popularity”, according to Masayoshi Son, CEO of SoftBank.
Alts & DeFi
Alts and DeFi wise, Defi TVL (Ethereum network) slightly decreases to $55.17B at the time of writing. For some well-known tokens, over the week, Yearn Finance ($YFI) recorded -18.38 decline, Aave ($AAVE) is -17.73%, Compound ($COMP) is -16.87%, Uniswap ($UNI) is -21.35 %, Polkadot ($DOT) is -16.82 %, Chainlink ($LINK) is -17.16%, Cardano ($ADA) is -12.56% and Polygon ($MATIC) is -23.02%.