Bitcoin and Ethereum, the two largest coins by market capitalization, traded in the red on Sunday evening as the global cryptocurrency market cap declined 3.1% to $927.2 billion at press time.
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Why It Matters: Major coins reversed the upward momentum on Sunday ahead of the fresh trading week.
Stock futures were seen in negative territory at press time with the S&P and Nasdaq futures down 0.2% and 0.35%, respectively.
The upcoming trading week will see the release of June Consumer Price Index (CPI) data on Wednesday and a number of key earnings releases from major companies.
Data released last week showed that the U.S. added 372,000 jobs in June, which means the economy is not slowing down at a rapid clip and the Federal Reserve has the room for another 0.75% rate increase this month.
“The focus shifts quickly to next week’s CPI report and even mildly hot inflation numbers will allow the Fed to tighten again by 75 basis-points. If inflation delivers another upside surprise, the September meeting could see expectations fully priced in a half-point rate increase but that could easily go up to 75 basis-points,” said OANDA Senior Market Analyst Edward Moya, in a note seen by Benzinga.
On the apex coin, Moya said, “Bitcoin has been stabilizing even as risk aversion remains the dominant mindset on Wall Street.”
Alternative.me’s “Crypto Fear & Greed Index” continues to show “Extreme Fear” going into the fresh trading week. The index read 22 at press time, while last week it was at 14. A value of 0 represents “Extreme Fear,” while 100 indicates “Extreme Greed.”
Michaël van de Poppe expects “significant support” for Bitcoin in what he termed will be a “fun week.”
Reached significant support level here for #Bitcoin + CME gap towards $21.8K.
Going to be a fun week and I think we’ll see continuation on the trend upwards.
Back tomorrow with the live stream! pic.twitter.com/u9TyyMIjLE
— Michaël van de Poppe (@CryptoMichNL) July 10, 2022
“ I think we’ll see continuation on the trend upwards,” the cryptocurrency trader said on Sunday.
Over the weekend, Glassnode co-founders Yann & Jan said that significant liquidity is waiting to be deployed on the sidelines. They tweeted it was a matter of time when and not if this would be deployed pointing to the upcoming Federal Open Market Committee meeting.
#Bitcoin is holding the $20k level. Increase in stablecoin market cap share suggested an oversold #BTC on a daily timeframe
Significant liquidity is sitting on the sidelines. It is a matter of when (FOMC) and not if capital is redeployed
Full analysis https://t.co/awlgT8OWoY pic.twitter.com/feD84V486Y
— Negentropic (@Negentropic_) July 8, 2022
On Ethereum, chartist Ali Martinez said that he was waiting for the second-largest coin by market cap to “print a sustained four-hour candlestick close” above $1,290 level to enter a long trade, targeting $1,670.
#Ethereum l I’m waiting for $ETH to print a sustained four-hour candlestick close above $1,290 to enter a long #ETH trade, targeting $1,670. https://t.co/KankdDyypl pic.twitter.com/J3FI1THBKx
— Ali Martinez (@ali_charts) July 8, 2022
Justin Bennett said the cryptocurrency market is “struggling” to hold the gains racked up over the last some days. The analyst tweeted that the total market cap failed to hold above the May trend line on the four-hour chart. He observed similar price action from Ethereum and was waiting on Bitcoin to the same.
Markets are already struggling to hold these gains. $TOTAL failed to hold above the May trend line on the 4h chart.
Seeing similar price action from $ETH. Now waiting on $BTC. pic.twitter.com/sESNxG4wvI
— Justin Bennett (@JustinBennettFX) July 8, 2022
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Read More:Bitcoin, Ethereum, Dogecoin Go Red Again: What To Watch – Benzinga