July 24, 2021

Positional battles for the $ 40 thousand level began in the bitcoin market.

Positional battles for the $ 40 thousand level began in the bitcoin market.

On Tuesday, positional battles began on the bitcoin market for the possession of a psychological height of $ 40 thousand after updating earlier highs in the last three weeks.

A jump of almost 19% on Sunday-Mondayforced to cautiously assess the possibility of continued growth, even despite the increased appetite of MicroStrategy, which, on the wave of success in the placement of bonds for $ 500 million, announced an additional issue of shares in the amount of $ 1 billion, the proceeds from which will go to purchase BTC. According to CEO Mile Saylor, the Fed has become obsessed with the "printing press" therefore, further adoption of cryptocurrencies by institutions will inevitably continue.

His words are confirmed by the data of the Intertrust survey, according to which the global hedge funds plan to significantly increase the share of digital assets, up to 7.2% of their NAV. But it was about 2026.

Standby mode

Now many can take expectantposition. Goldman Sachs advised clients not to rush to diversify their investment portfolios using crypto assets. Weekly data from CoinShares reflected an outflow of funds from crypto funds for the second week in a row in the amount of $ 21 million. Everyone is waiting for a decrease in regulatory pressure and removal of current uncertainty.

For this reason, especially at current levels,purchases of major players may weaken, which will extend the consolidation period for the whole of June and most of July. In any case, the technical picture does not exclude this. The triangle has received a wider frame and so far only three out of five waves can be traced in it. Subsequent ones will lead to a decrease in volatility and a narrowing of the range. If the hypothesis is correct, then a smooth decline to $ 37,000 and then to $ 34,000 - $ 35,000 should be expected.

For altcoins, the consolidation scenario is notcontested. Even in Polkadot, which went up 17% the day before on the back of news about getting a listing on Coinbase Pro. The rally in Bitcoin, which saw its dominance index soar to 43.5%, sparked new tweets from Musk regarding the return of BTC-based EV purchases. "Conscience" will stop tormenting him when the share of green mining reaches 50% (the University of Cambridge previously estimated it at 30%). Anonymous hackers may no longer visit Musk.

The intrigue of the Fed's "printing press"

Ahead is a meeting of the US Federal Reserve System.What will the head of the central bank Jerome Powell say, will he ignore the recent surge in consumer prices? Or it will finally declare the need to discuss the timing and pace of curtailing the work of the "printing press". This worries many in the traditional financial market and some, such as billionaire Paul Tudor Jones, are ready to invest up to 5% of their capital in Bitcoin as a hedge. The meeting is scheduled for Wednesday at 9:00 pm Moscow time, with Powell's press conference starting half an hour later.

text: Chen Limin, Chief Financial Officer and Head of Trading, ICB Fund, photo: Shutterstock