Cryptocurrency markets are trading flat as retail traders increase short positions ahead of FOMC meeting and final tariff deadline of Aug. 1.
Notable Statistics:
- IntoTheBlock data shows Bitcoin and Ethereum large transaction decreased by 9.6% and 20.8%, respectively. Daily active addresses moved higher by 2.5% and 12.7%, respectively.
- Coinglass data shows 121,880 traders were liquidated in the past 24 hours for $272.38 million.
- SoSoValue data shows net intflows of $79.9 million into spot Bitcoin ETFs on Wednesday. Spot Ethereum ETFs saw net inflows of $218.6 million.
Trader Notes: Bitcoin is forming a bullish rectangle pattern, according to trader Mags, signaling a strong continuation setup.
A breakout and new all-time high may be imminent.
Crypto Seth cautioned that many retail traders are shorting Bitcoin with 100x leverage ahead of FOMC, a risky strategy vulnerable to even minor price moves that could trigger massive liquidations.
On the Ethereum front, traders continue to eye $4,000 as the major resistance level.
Michael van de Poppe sees no significant shift in ETH's trajectory, anticipating further upside momentum but warning of a potential sharp correction after hitting $4,000.
Ted Pillows echoed this, noting Ethereum has reclaimed liquidity and remains bullish above $3,632 support.
Solana is at a critical juncture. Crypto Bullet urged bulls to defend the current support zone or risk a drop to $160.
Dogecoin shows signs of resilience amid broader consolidation. Trader Tardigrade spotted a hidden bullish divergence on the 4-hour chart, with price forming higher lows while RSI prints lower lows—often an early sign of rebounding strength in a fading downtrend.
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