Recent crypto rally continues; Eurozone developments bear monitoring

↘️ Bitcoin and Ether extend gains
↘️ Complications and difficulties build for Europe
↘️ Eurozone economic and currency developments have implications for digital assets

The price action in major crypto tokens continues to be among the most important and noteworthy developments in the crypto space this week. Bitcoin (BTC-USD) has pushed above $23,000 and is further retracing or filling the steep price decline, or “gap,” from mid-June that extends from approximately $28,000 to $21,000. That $28,000 level markets the next upside target or resistance. Ether (ETH-USD) has gone further in filling its mid-June gap, which we see from approximately $1,700 to $1,000. And the $1,700 level is the next target/resistance for that token price.

Read the full report here: alt5sigma.com/digital-assets-morning-call-july-20-2022

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Continued gains in Ether pull ETH/BTC cross sharply higher

↘️ Bitcoin and Ether show resilience despite negative industry headlines
↘️ ETH/BTC cross jumps over 30% in a week
↘️ The rebound in the ETH/BTC cross concurs with improved sentiment in crypto token prices

Bitcoin holds and Ether extends gains

Major crypto tokens continue to trade constructively, with Bitcoin (BTC-USD) holding the bulk of its recent gains while Ether has extended its rally to briefly push above $1,600. The gains originate from the markedly lower levels reached in the April-June selloff, which admittedly left the tokens at much cheaper valuations.

Read the full report here: alt5sigma.com/digital-assets-morning-call-july-19-2022

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Bitcoin correlation with Nasdaq back on the rise

↘️ Weaker tone in global equities concurs with modest slippage in major crypto tokens
↘️ Bitcoin/risk asset correlation back on the rise after dropping in June
↘️ More institutional trading in crypto could support that correlation in the longer term

Movements in traditional financial markets and the shorter term drivers are important for crypto market participants to monitor.

Read the full report here: alt5sigma.com/digital-assets-morning-call-july-12-2022

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Bitcoin and traditional financial assets have factored in some amount of risk

↘️ Bitcoin’s drawdown from the November high is near those of other major pullbacks of recent years
↘️ Economic and geopolitical risks remain, but markets have factored in some degree of them
↘️ This week’s data / events may keep near-term market enthusiasm at bay

The consolidation in major crypto tokens is now in its fourth week. The relative stability in bitcoin and ether could even suggest the tokens are attempting to carve out a bottom following the steep losses incurred in Q2.

Read the full report here: alt5sigma.com/digital-assets-morning-call-july-11-2022

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↘️ Markets are factoring in downside risks to economic growth
↘️ Crypto industry may already be through much of its recession
↘️ Longer term strategies may start to see value in lower crypto valuations

There are two broad driving forces in the crypto market at present; macro developments and crypto specific factors. And they are not mutually exclusive. As we discuss, the change in the macro backdrop and outlook has exposed shortcomings and excessive leverage in the digital asset space, resulting in the steep decline in token prices seen this year.

Read the full report by Robert Lynch here: alt5sigma.com/market-update-macro-outlook-and-crypto-specific-dynamics-remain-driving-forces-for-token-prices

#marketupdate #digitalassets #macroeconomics #crypto #investing

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US dollar gains concur with Bitcoin’s struggles

↘️ Ongoing shifts in the global macro outlook are generating significant moves in fiat currencies
↘️ Weaker global growth and Eurozone-specific issues have worked to the US dollar’s advantage
↘️ It is probably no accident that US dollar gains have concurred with Bitcoin’s decline

While major crypto currencies are starting their third week of consolidation and relative stability, fiat currencies are making significant moves. The US dollar, as measured by the Dollar Index (DXY) has rallied to 20-year highs and is up 18% from its early-2021 lows.

Read the full report here: alt5sigma.com/digital-assets-morning-call-july-6-2022

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Shifting economic narrative an important input for crypto markets

↘️ Concerns about economic growth becoming more prominent…
↘️ …reflected in the dramatic decline in market interest rates
↘️ The change in the economic outlook is important for crypto and has mixed implications
↘️ More developments on consolidation in the crypto lending and brokerage space

Major crypto token prices have absorbed the latest round of industry-specific news and macro developments reasonably well, holding within the ranges established over the past two weeks. For bitcoin, that range extends from roughly $17,600 to $22,000, while in ether the range following the mid-June selloff is roughly $880 to $1,280. At present, the price action is not signaling an imminent breakout of those ranges in either direction.

Read the full report here: alt5sigma.com/digital-assets-morning-call-july-5-2022

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Renewed crypto token slippage alongside less helpful news flow

↘️ Bitcoin and Ether decline leaves them in closer proximity to recent lows
↘️ Crypto hedge fund reportedly in liquidation
↘️ Grayscale Bitcoin Trust application to convert to ETF is denied by SEC
↘️ MicroStrategy announces modest purchase of Bitcoin

Major crypto tokens are under some pressure ahead of the long holiday weekend in North America. Pressure stems in part from the renewed weakness in equities, with the Nasdaq Composite Index down 2.2% in early trading, while the news flow has also been unhelpful.

Read the full report here: alt5sigma.com/digital-assets-morning-call-june-30-2022

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US recession forecasts may need to be brought forward

↘️ Modest slippage leaves major crypto tokens in recent range
↘️ Eurozone inflation mixed but keeps ECB tightening expectations intact
↘️ Is the US already in a recession? Markets have already discounted a lot of bad news

The week-long consolidation pattern in bitcoin and ether continues, although the very short term focus on the latest weakening in risk assets — evident in Tuesday’s 3% drop in the NASDAQ index — has concurred with a pullback in crypto tokens from their recent highs. That has seen bitcoin fall back to, and marginally below, the $20,000 threshold.

Read the full report here: alt5sigma.com/digital-assets-morning-call-june-29-2022

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ALT 5 Sigma

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ALT 5 Sigma is a global fintech company providing next-generation blockchain powered financial platforms.