Weekly crypto-market analysis from Geco.one 19.07.2021
Bitcoin’s quotes fell by more than 7% last week. This depreciation led to the defeat of local support of $ 32,500. Due to the weekend gains, BTC tested this zone from the bottom (as resistance), and at the beginning of the new week, the supply reaction appeared on the market again. If this level is permanently rejected, the BTC price could drop to around $ 30,000 soon. It is where the closest, significant level of support is located.
It’s worth noting, however, that $ 30,000 is one of the most important support levels on the BTC chart. It turns out that although we could expect a continuation of declines in the short term, if only there is a more significant demand response around this support, Bitcoin could even return to increases. At the moment, however, this is a purely hypothetical assumption, as everything will depend on the reactions that will appear around the mentioned support.
We could also expect potential declines in the BCH market. Even though the price of this cryptocurrency fell to the area of technical support of $ 430 a few days ago, there was still no significant demand reaction that could signal a potential rejection of this zone. However, if this level is broken, the Bitcoin Cash price could drop even to around $ 370. It’s where the next significant level of support is located.
The current situation on the binance coin (BNB) is also pro-declining; the rate has recently increased from technical support of $ 230 to local resistance around $ 330 and measuring 50% — Fibonacci correction from an earlier downward impulse. It’s where the supply response appeared a few days ago. If this zone is permanently rejected, the BNB price could return to around $ 230.
Looking at the LINK quotes, we notice that the price of this cryptocurrency has recently dropped below the technical support of $ 16. It means that the market broke the bottom of the consolidation that had been going on for some time, which may naturally herald further declines.
Currently, the LINK rate is re-testing the recently surmounted support (now resistance) of $ 16. If this is the area that is permanently rejected, we could expect a continuation of declines to $ 13.50, or even $ 9.80 soon.
The current situation on Polkadot’s stock is very similar. The exchange rate of this cryptocurrency has also broken the bottom of the consolidation, which we observed between $ 14 and $ 17 in recent days.
Despite the weekend gains, supply pressure again appeared on the market at the beginning of the new week. If only the declines continue, the DOT exchange rate could drop to $ 10.50 or even around $ 7 in the near future.