Bitcoin has continued to consolidate this week, forming lower lows and lower highs. Despite the diminished interest in the crypto market witnessed by the declining trading volume, BTC may be awaiting a push higher as holders have begun to withdraw the leading cryptocurrency from exchanges.
Headlines in the crypto market this week:
- Federal Reserve Chair Jerome Powell stated this week that a central bank digital currency could undercut the need for private cryptocurrencies, including Bitcoin and Ether.
- Bank of America has decided to support Bitcoin futures trading for certain clients.
- Axie Infinity Blockchain coin AXS price has seen a massive surge over the past few weeks due to surging popularity. However, the token is at risk of further downside momentum as it starts to retrace.
- Square CEO Jack Dorsey announced that he is building a new business division focused on Bitcoin and DeFi.
Bitcoin back in accumulation mode, awaiting a breakout
- While Bitcoin price continues to consolidate within a descending parallel channel, the network remains strong.
- Bitcoin miner accumulation has begun despite the market slump.
- Adding to the trend reversal thesis, exchange outflows of Bitcoin has been increasing over the past two weeks.
BTC/USDT 12-hour chart
- Bitcoin price is currently supported by the 78.6% Fibonacci retracement level at $31,450.
- Further selling pressure could see Bitcoin retest $30,159, the June 26 low.
- Stronger support could be found at the 2021 low at $28,035.
Ethereum price action slow ahead of London hard fork
- The most anticipated Ethereum upgrade is expected to launch in early August.
- The London hard fork includes five Ethereum Improvement Proposals.
- One of the proposals, EIP-1559 will introduce a new fee structure that would make Ethereum less inflationary.
- Ethereum has been trading within a symmetrical triangle pattern, indicating indecision.
- Ethereum price lost the 78.6% Fibonacci retracement level, as support, only a close above this level at $1,911 could save ETH from falling further.
- If Ethereum falls further, its long term outlook could be controlled by the bears.
ETH/USDT 12-hour chart
XRP has been handed a small victory in latest case development
- In the lawsuit filed by the US SEC against Ripple Labs, a new development has arisen.
- The judge in the case has authorized Ripple’s request to question former SEC official William Hinman.
- Hinman’s testimony could be vital to the case as he previously stated that Ethereum is not a security.
- XRP price action has been muted, not making any strong moves in either direction as it continues to consolidate within a sideways chart pattern.
- Until further development in the SEC case is revealed, Ripple could continue in the price range.
XRP/USDT 12-hour chart
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