Weekly Market Update: What’s next for Bitcoin?
  • Bitcoin is testing lower levels
  • Ethereum is back in the red after reaching the $2000 supply zone.
  • What’s in store next week?
Bitcoin is testing lower levels

This week, the consumer price index (CPI) figures for the United Kingdom and the euro zone were published. The figures for the UK were higher than expected and continue to reach new 40-year highs. Eurozone figures were in line with expectations, but also hit new 40-year highs.

Bitcoin's upside is becoming less aggressive, which could indicate that sellers are taking more and more control. As you can see in the chart below, Bitcoin took the last higher low without much volume. It is currently testing the daily demand zone of $20,700 - 21,300. Bitcoin is likely to respond at this level because it recently finished a big upward run with two significant daily candles and has not retested this zone since. Therefore, this zone can be called a ‘fresh demand zone’. The next daily demand zone that Bitcoin can test is at $18,900 - 20,000 if it continues to fall.

Ethereum is back in the red after reaching the $2000 supply zone.

The $2000 mark is a psychological level for people who want to sell Ethereum, and it picked up several sell orders that were just above $2016 in the daily supply zone.

Right now, Ethereum is testing the newly created daily demand zone at $1660 - 1790. If Ethereum loses this level, the next new daily demand zone is at $1360 - 1450. This zone is also at the "golden pocket" of the Fibonacci retracement, between 0.5 and 0.618.

The first new daily demand zone for total crypto market capitalization is $925 billion to $965 billion. This coincides with the new demand zones for Bitcoin and Ethereum.

What’s in store next week?

There is no big news coming up next week. Apart from new home sales in the US for the month of July. A decline in new home sales is expected. This figure has been in a downward trend since September 2020.

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