Can crypto stocks save BTC?

Author: Ahura Chalki

Friday, 22 July 2022 Number of words: 392 Study time: 2 Minutes Views: 639

BTC price analysis

While a few days ago, Tesla, in its quarterly report, announced that they sold 75% (over $950 million) of their Bitcoins for an average price of $29,000, market participants ignored it and continued to bet on buy positions.

The Bull Run, which started almost ten days ago from under 19,000, pushed the BTC to touch even $24,250 before easing under $23,000. Some analysts believe that if the bullish trend can pass the 200 weekly moving average ate 27,000 US Dollars, this wave can go towards $30,000. 

Tesla sold its Bitcoins, and Crypto stocks were regaining their losses! 

The interesting point in the Cryptocurrency market is not about the cryptocurrencies themselves, and these days crypto-related stocks are getting more interested for many retail traders. According to VandaTrack reports, over the past ten days, about $1 billion worth of shares of crypto-exposed companies have been bought just by retail traders. The most exciting stocks were Marathon Digital Holdings Inc., Coinbase (NASDAQ: COIN) Global Inc., and Riot Blockchain (NASDAQ: RIOT) Inc.

We should not forget that this bull run was in line with stock markets after decreasing market risk. In the past two weeks, USVIX has been dropping, and now it is under 26. 

Still, we have the risk of one last major plunge for Bitcoin, incredibly, as long as it moves under 27,000 USD. Despite all mentioned positive movements, BTC is still down about 49% this year, and crypto-related companies have been among the worst-performing stocks. The market is still suffering from the collapse of the TerraUSD stablecoin, and it will be hard to regain investors' trust. 

"Whenever any stock or group breaks out of a multimonth range to the upside, the rally usually lasts several weeks," said Matt Maley, chief market strategist at Miller Tabak + Co. "It won't happen in a straight line so that they could take a breather at any time, but the line of least resistance is now up."

From the technical point of view, Bitcoin, since mid-June, constantly posted new Higher lows and higher highs, which can be read as a positive sign, but the OBV trend line cannot confirm it. RSI currently moves at 58-60, and if it falls again under 55, then it will also verify the OBV signal. For now, we can see that uptrend is still not confirmed, but bears also have not that much power to take the price down.

BTC price analysis


Source: IFC Markets
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