Bitcoin, Ethereum, Dogecoin Rise: Is Crypto Finally Set For A Summer Relief Rally?

Zinger Key Points
  • Bitcoin, Ethereum, Dogecoin spike along with other risk assets
  • BTC's upwards movement around $20,000 evokes bullish calls
  • Market sentiment remains afflicted with "extreme fear" amid negative news

Bitcoin and Ethereum spiked above key psychological levels on Monday evening as the global cryptocurrency market cap rose 4.3% to $911.3 billion at press time.

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Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 4.7% -2.7% $20,192.76
Ethereum ETH/USD 7% -3.4% $1,148.65
Dogecoin DOGE/USD 3.4% -3.8% $0.07
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
The Sandbox (SAND) +15.3% $1.20
Convex Finance (CVX) +12.3% $4.60
THORChain (RUNE) +10.9% ​​$2.16

See Also: Best USDC Interest Rates

Why It Matters: Risk assets soared as the Fourth Of July weekend drew to an end. Bitcoin and Ethereum were seen trading above the $20,000 and $1,000 levels, respectively. 

On Sunday, Bitcoin slipped as low as $18,966.95. The largest cryptocurrency by market cap is currently trading nearly 6.1% above that level.

S&P 500 and Nasdaq futures traded 0.6% and 0.8% higher, respectively, at press time.

Bitcoin closed for the fourth consecutive week below its 200 weekly moving average. This has usually marked previous market bottoms, according to Delphi Digital. 

Bitcoin Price Performance Since January — Courtesy Delphi Digital

“This is the longest BTC has remained below its 200 weekly average, surpassing even the COVID capitulation of March 2020,” said the cryptocurrency research company in a note, seen by Benzinga.

The apex cryptocurrency continues its inverse correlation with the dollar, while its strong correlation with the Nasdaq continues. Delphi Digital noted an increase in accumulation as prices fall. Addresses holding at least 1 BTC touched a recent all-time high of 877,501.

The current spike aside, negative news continues to dent sentiment in the cryptocurrency market. 

Alternative.me’s “Crypto Fear & Greed Index” signaled “Extreme Fear” at press time. The current value of the index is 19, while last week it was 10. A value of 0 means “Extreme Fear,” while 100 indicates “Extreme Greed.”

“How low Bitcoin goes depends on whether the stock market made a bottom and if no major crypto company falls into liquidation,” said OANDA Senior Market Analyst Edward Moya.

“Sentiment will take some time to improve, especially after many anticipated crypto deals are falling apart,” said Moya. The analyst referred to eToro abandoning its SPAC merger to go public while BlockFi attempts to stay afloat. 

Cryptocurrency trading firm Vauld became the latest to suspend withdrawals over the weekend due to financial challenges amid volatile market conditions.

Chartist Ali Martinez cited $19,500 as a high resistance level for BItcoin and said if the apex coin manages to print a daily close above it, then “important upward price action” could be expected.

Cryptocurrency trader Michaël van de Poppe noted bullish divergence on the daily Bitcoin chart on CME futures. “Flipping $20K and we'll be good to go towards $23K and the summer relief rally. Finally,” said the analyst.

Ethereum continues to flow into exchanges at a rapid clip, according to Santiment. The market intelligence platform said there’s a “higher risk” of a selloff while coins are rising in the exchange wallets.

Read Next: Here's Why Bitcoin Just Had Its Worst Quarter In Over A Decade; Ethereum Saw Its Worst Quarter Ever

Photo via BBbirdZ on Shutterstock

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