Key Insights: – Bitcoin (BTC) rose for the third week in five, supported by a shift in sentiment towards Fed monetary policy.- Ethereum Merge and Cardano Vasil hard fork updates delivered the broader crypto market with further upside.- The shift in sentiment was evident in the technical indicators.The EMAs for ADA, AXS, BTC, ETH, and LDO delivered bullish signals.In the week ending July 24, the total crypto market cap increased for a third consecutive week.Bullish sentiment going into the week delivered a broad-based crypto rally on Monday.Ethereum ( ETH ) Merge updates and progress towards the end of July Cardano ( ADA ) Vasil hard fork drove demand for cryptos.
The momentum continued into Tuesday before a Wednesday reversal.On Wednesday, news of Tesla Inc.( TSLA ) dumping 75% of its bitcoin ( BTC ) holdings weighed on BTC and the broader crypto market.On Thursday and Friday, US economic indicators added to the investor angst, with the numbers reigniting fears of a US recession.In July, the services PMI slid from 52.7 to 47.0, according to prelim figures, reigniting fears of an economic recession.
A PMI value below 50.0 indicates a sector contraction.Services account for more than 70% of the US economy.Over the weekend, it was a mixed session, with a Sunday breakout fizzling out as investor jitters over Fed monetary policy crept in.
This week, the US economic calendar will influence.On Tuesday, US consumer confidence figures will draw interest ahead of the Fed monetary policy decision.Expect a 100-basis point rate hike to weigh and a 50-basis point rate hike to drive crypto demand.However, forward guidance will also need attention.Bitcoin (BTC) Last week, bitcoin rallied by 8.62% to end the week at $22,585.
A bullish start to the week saw BTC rally from a week low of $20,761 to a Wednesday high of $24,276 before hitting reverse.
The reversal saw BTC slide to sub-$22,000 before finding support.Bullish sentiment towards the Ethereum Merge and Cardano Vasil hard fork provided support in the week.This week, BTC will likely remain the broader crypto market barometer.
Last week, the Bitcoin Fear & Greed Index moved into the “Fear” zone, suggesting a bottoming out.However, the Fed will deliver its heavily anticipated monetary policy decision on Wednesday.A 100-basis point rate hike could see BTC slide back to sub-$20,000.While a 75-basis point hike is market neutral, a 50-basis point hike would support a return to $25,000.At the time of writing, BTC was down 0.02% to $22,580.Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal.This morning, bitcoin sat above the 50-day EMA, currently at $22,391.The 50-day pulled away from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA, both bullish BTC signals.
A bullish cross of the 100-day EMA through the 200-day EMA would support a run at $25,000 to target the elusive $30,000 handle.However, BTC would need to hold above the 50-day EMA to avoid the 200-day EMA, currently at $22,167, and a reversal of last week’s gain.Cardano (ADA) Last week, Cardano ( ADA ) rallied by 14.41% to $0.5121.Contributing to the broader market rally, ADA rallied from a Monday low of $0.4457 to a Wednesday and a July high of $0.5487.The Tesla news tested buyer demand, leading to a fall to $0.47 levels before a weekend recovery.For ADA, news updates on the upcoming Vasil hard for will remain the key driver.However, price volatility will pick up ahead of the Fed policy decision.Looking at the trends, a breakout from the July high of $0.5487 would bring the June high of $0.6688 into view.
Downside risks remain should developers announce a last-minute delay to this week’s fork or the Fed delivers a 100-basis point hike.At the time of writing, ADA was down 1.50% to $0.5044.Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal.This morning, ADA sat above the 50-day EMA, currently at 0.4909.The 50-day pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bullish ADA signals.
A bullish cross of the 100-day EMA through the 200-day EMA would support a run at $0.60 to target the June high.However, ADA would need to hold above the 50-day EMA to avoid the 200-day EMA, currently at $0.4845, and last week’s low of $0.4457.Axie Infinity (AXS) Last week, Axie Infinity ( AXS ) rallied by 18.61% to $0.17.21.
Finding support from the broader market, AXS rose from a Monday low of $14.38 to a Sunday and a July high of $18.83.The Tesla news tested buyer demand on Wednesday, leading to a fall to sub-$15 before a weekend rebound.Looking at the trends, a breakout from the July high of $18.83 would bring the June high of $23.92 into view.Downside risks include ADA or ETH developers announcing last-minute delays or the Fed delivering a 100-basis point hike.At the time of writing, AXS was down 1.22% to $17.00.Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal.This morning, AXS sat above the 50-day EMA, currently at $16.16.The 50-day pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, both bullish AXS signals.
A bullish cross of the 100-day EMA through the 200-day EMA would support a run at $20.00 to target the June high.However, AXS would need to hold above the 50-day EMA to avoid the 200-day EMA, currently at $15.77, and last week’s low of $14.38.Ethereum (ETH) Last week, Ethereum rallied by 19.43% to $1,598.Delivering support to the broader market, ETH rallied from a Monday low of $1,336 to a Sunday and a July high of $1,664.
While the Tesla news tested buyer demand, ETH avoided a material reversal, with investors focused on the September Merge.For Ethereum, news updates on the Merge will remain the key driver.However, we expect price volatility to pick up ahead of the Fed policy decision.
Looking at the trends, a breakout from the July high of $1,664 would bring the June high of $1,972 and $2,000 into view.Downside risks remain should developers announce a delay to the September Merge or the Fed deliver a 100-basis point hike.At the time of writing, ETH was down 1.94% to $1,567.Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal.This morning, ETH sat above the 50-day EMA, currently at $1,496.The 50-day pulled away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA, both bullish ETH signals.A widening of the 50-day EMA from the 100-day EMA would support a run at $1,750 to target the elusive $2,000 handle.
However, ETH would need to hold above the 50-day EMA to avoid the 100-day EMA, currently at $1,400, and last week’s low of $1,336.Lido DAO (LDO) Last week, LDO rose by a modest 0.49%, following the previous week’s 155% surge, to end the week at $1.634.A choppy start to the week saw LDO rise to a Monday high of $2.046 before falling to a Tuesday low of $1.396.Finding support mid-week, however, LDO revisited $1.81 levels before a Sunday pullback.Progress towards the ETH Merge remained the key driver for LDO and the broader market.While LDO failed to see similar gains to ETH, a consolidation of the previous week’s breakout was significant.Away from the technicals and Merge news updates, Ether staking numbers will also provide direction.
The staking numbers will dictate the LDO correlation with ETH, which could leave LDO in the hands of the Merge news updates.At the time of writing, LDO was down 1.29% to $1.6328.Looking at the 4-hourly chart and the EMAs, the signal was bullish.On Monday, LDO continued to steer clear of the 50-day EMA, currently at $1.5050, to target a return to $2.00.The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA breaking clear of the 200-day EMA, both positive LDO indicators.A further widening of the 50-day EMA from the 100-day EMA would support a run at $2.00.However, a fall through the 50-day EMA would bring sub-$1.40 levels into view..