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Bitcoin and ether have experienced double-digit gains over the past seven days of trading. This dynamic reflects a period of interesting volatility in the crypto market, influenced by various economic and technical factors. Let’s take a closer look at these movements and the forces at play behind this contrasting performance.
A week of gains for Bitcoin and Ether
Despite a day of decline, Bitcoin and Ether have posted significant gains over the past seven days. Currently, the price of Bitcoin (BTC) is flirting with 61,000 dollars. However, the crypto asset has recorded a gain of about 14% for the week. Ether (ETH), on the other hand, is trading slightly above 3,000 dollars, with a gain of about 11% over the past seven days.
The other major cryptos have also shown remarkable performances. Solana (SOL) has increased by 22% and XRP has gained about 23% over the same period. These positive results highlight notable resilience in the market despite some recent challenges.
Indeed, recent Bitcoin liquidations by Germany have caused a notable drop in prices. These liquidations have pushed BTC from 65,000 dollars to 55,800 dollars at the beginning of July. Additionally, the repayments of creditors by the defunct crypto exchange Mt. Gox, using Bitcoin and Bitcoin Cash, have potentially increased supply in the market.
Technical indicators and forecasts for the crypto market
Julien Bittel, head of macroeconomic research at Global Macro Investor, draws attention to a crucial technical indicator: Bitcoin’s Bollinger bands. Currently, these bands are extremely compressed, which has preceded significant price movements in the past. Bittel notes that “only two other periods in history have seen Bollinger bands this tight: April 2016 and July 2023.”
During these periods, Bitcoin’s price experienced substantial increases in the following months. He predicts that if the trend continues, Bitcoin could reach between 140,000 dollars and 190,000 dollars. The approval and launch of Bitcoin spot ETFs earlier this year could also play a significant role in the current market dynamics.
New investors accessing BTC directly through these funds might use current corrections as an opportunity to increase their exposure. According to a Gemini report, these investors “could be newcomers to the market who previously did not have direct access to spot Bitcoin.”
Fournier adds that Bitcoin could continue to accumulate within a range of 62,500 dollars to 67,000 dollars until the launch of Ether ETFs. This volatility could offer profit opportunities in the coming weeks, he indicates.
Despite recent volatility, experts remain optimistic about the long-term prospects for Bitcoin and Ether. Investors, therefore, need to stay vigilant and informed to take advantage of market developments.
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Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.