July was largely focused on the potential launch of Ethereum ETFs for spot trading, but Bitcoin and a number of other major assets also have notable moves ahead.
Bitcoin Price Could Hit Multi-Month Low
Bitcoin price is maintaining above $60,000. While many are concerned that market instability could drag prices below this level, they are missing the bigger picture.
BTC on the weekly chart can be seen forming a double top pattern. This macro bearish pattern signals that the asset could enter a downtrend. Bitcoin price could break below the neckline at $61,483.
BTC could find some support at $58,874. This pattern suggests the price could fall further. The price target is set 17% below the neckline at $50,982, which marks a four-month low for BTC.
The likelihood of this happening is quite high, given that the “sell in May and disappear” mentality continues to impact spot BTC ETF inflows. Combine this with the volatility of the cryptocurrency market, and withdrawals are likely to occur.
Source: TradingView
However, Bitcoin price could also bounce back from $60,000 or $58,847, invalidating the bearish thesis. This scenario would be confirmed when $62,000 is flipped as support.
Arbitrum may set new bottom
Arbitrum’s price drop was expected, but the threat of a new all-time low is alarming. ARB, the second-largest Layer 2 token after Polygon (MATIC), has seen a significant drop in demand in recent weeks, leading to a sharp drop in price. Since the beginning of March, the price has dropped more than 60% to $0.79, forming a head and shoulders pattern.
The head and shoulders pattern is a bearish reversal chart pattern with three peaks – a higher middle peak (head) surrounded by two lower peaks (shoulders). When the neckline is broken, it indicates a possible trend reversal from bullish to bearish.
Based on this model, the target price for Arbitrum is predicted to be $0. However, this is absurd as ARB is a fundamentally strong asset. The most likely outcome is for ARB to make a new record low, as it is above the current low of $0.739.
Changing market sentiment could accelerate this decline and before the end of July, ARB could see a new ATL.
Source: TradingView
On the other hand, if Arbitrum price manages to rebound from $0.739, it could have a chance to surpass $0.929. A successful attempt could take ARB above $1.00, invalidating the bearish thesis.
NFTs are dying
The NFT market rose to prominence in 2022, but its performance since then has been disappointing. Activity and demand picked up again in Q1 of this year.
However, this revival seems to be short-lived. Over the past three months, overall trading volume has plummeted from $38.8 million to $7.9 million, marking an 81% decline.
Source: Dune
The reasons behind this decline are twofold. Firstly, the lack of innovation in this space has caused demand to bottom out. Secondly, there has been a rise in alternative investment options and assets such as real world assets (RWA).
The rise of Artificial Intelligence (AI) tokens has also attracted the attention of investors. With the potential of AI development, crypto investors are more inclined to choose them.
As a result, NFT trading volumes may decline further as bearish market conditions and the factors mentioned above strengthen.
You can see coin prices here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Itadori
According to BeinCrypto
