The Crypto Fear and Greed Index has returned to a neutral level, because Bitcoin has been able to regain the psychological level of $40,000 per digital coin:
This is the highest level of the index since May 12, and this is a signal that bullish sentiment is returning to the market:
From a fundamental perspective, market sentiment is changing due to continued positive crypto news and events. For example, starting from August 2nd, German institutional funds (the so-called Spezialfonds) will be allowed to invest in cryptocurrencies and hold 20% of their assets in cryptocurrencies. According to Bloomberg, these German funds currently manage approximately 1.8 trillion euros (2.1 trillion US dollars). If 20% of this money goes to the cryptocurrency market in the next few years, the crypto industry will add an additional 360 million euros (420 million US dollars).
But not only is the number of institutional investors increasing; the number of cryptocurrency users is also increasing exponentially. According to data from Crypto.com, there were more than 220 million encrypted users worldwide in June, more than twice the number of users at the beginning of the year:
After another positive week, the market started with a slight correction on Monday. According to Coin360.com, the price of a bitcoin is 33,578.25 euros (-4.23%), an ether—2,182.14 euros (-0.04%), a DOGE—0.1746 euros (-0.36%), and a UNI —— 18.84 Euro (+0.27%):
Source: Coin360.com (daily crypto market performance)
Let us now analyze the price chart of the major cryptocurrencies against the euro in the most noteworthy time frame.
Bitcoin / Euro
In the monthly time frame (MN), BTC/EUR forms a Bullish candlestick For the body of the previous small candlestick that has been covered in July:
In addition, the local high of the bullish candlestick is slightly higher than the local high of the previous candlestick, and the local low is slightly higher than the previous candlestick. We think this is an additional signal confirming that market sentiment has begun to turn from bearish to bullish.
In the daily time frame (1D), BTC/EUR has been able to break through the 90-day moving average (Horse 90), now to test the upper limit of the merge:
In our opinion, if BTC/EUR exits the consolidation range, then this may mark the beginning of an uptrend update.
In the weekly chart of ETH/EUR (1W), at the end Bullish engulfing, Forming a bullish candlestick. This candlestick has a local low that is higher than the previous one and a local high that is higher than the previous one:
The sequence of bullish engulfing patterns plus the last bullish candlestick confirms that the bulls are trying to regain control of the market.
This is why if ETH/EUR falls back to Neckline of Double bottom After the rebound, many traders will open long positions:
Please note that conservative traders will only enter the market during the stock market rally Neckline, The price exceeded the last local high shown in the price chart.
In the daily time frame (1D), the 30-day moving average of DOGE/EUR (Horse 30):
Let’s take a look at these three different scenarios. The first one is bullish.In this case, the bullish sentiment will return to the market and the bulls will push the price up to 90-day moving average (0.25 Euro).In the second case-the neutral case, the price will continue to trade sideways 30-day moving average (EUR 0.17).In the third scenario, the bearish pressure will continue, and the bears will push the price further down to 360-day moving average (0.09 Euro).
We believe that, at present, the possibilities are the same in all three cases.
Unity / euro
In the weekly chart (1W), UNI/EUR has formed a small Bullish candlestick:
Interestingly, the local high of this candlestick is higher than the previous one, and the local low is higher than the previous one. This increases the chance of a price rebound.This is why it is worth paying attention to the 4-hour chart (4H), where UNI/EUR has crossed the resistance line and is now forming a Double bottom:
According to the chart, the price is currently testing the neckline Double bottomIf the price is above the neckline, it will be an additional signal that the bulls are trying to regain control of the market and resume the upward trend.
This analysis only provides information and does not constitute investment, financial, trading or any other type of advice, and you should not regard any content of Bitvalex as such advice. Bitvalex does not recommend that you buy, sell or hold any cryptocurrency. Before making any investment decision, you are solely responsible for conducting your own due diligence and consulting consultants.