A rally in major coins remained intact on Thursday evening as the global cryptocurrency market cap rose 3.8% to $1.09 trillion at press time.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Oasis Network (ROSE)||+35.2%||$0.07|
|Ethereum Classic (ETC)||+24.5%||$40.95|
|Bitcoin Cash (BCH)||+22.3%||$155.63|
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Why It Matters: Bitcoin and Ethereum spiked even as data released on Thursday showed that the U.S. economy contracted for a second consecutive quarter, falling by an estimated 0.9% between April and June, versus analyst expectations of a 0.5% gain. This can be construed as a strong signal of a recession.
The pace of economic slowdown was quicker than expected, and this could complicate the U.S. Federal Reserve’s aggressive efforts to tackle inflation, said Edward Moya, a senior market analyst for OANDA.
“The debate between a half-point and 75 basis-point increase at the September meeting will remain heated until we get the next couple of inflation reports,” wrote Moya, in a note seen by Benzinga.
On the impact on the apex coin, Moya said, “Risk appetite roaring back after a second consecutive contraction for the U.S. economy raises the chances that the Fed could be looking to tighten at a softer pace at the next policy meeting in September.”
Risk assets got a boost on Thursday after strong numbers were posted by Apple and Amazon. At press time, S&P 500 and Nasdaq futures were up 0.5% and 1.15%, respectively.
Michaël van de Poppe said the “entire market looks ready to continue moving heavily.” The cryptocurrency trader said many altcoins and Bitcoin are breaking above their 50-day moving averages, while the apex coin is above the 200-week moving average.
The entire market looks ready to continue moving heavily.
Looks to me to see a continuation on those altcoins for 100-200%.
— Michaël van de Poppe (@CryptoMichNL) July 28, 2022
“Looks to me to see a continuation on those altcoins for 100-200%,” tweeted Van de Poppe.
Justin Bennett said that the total market capitalization for cryptocurrencies is testing a $1.05 trillion resistance after bouncing from the $940 billion to $960 billion support this week. The trader said that there’s a “lot of room” towards the $1.15 trillion mark.
“I still think buying dips is the way to go for now,” said Bennett on Twitter.
Gm fam! $TOTAL with a perfect bounce from $940-$960B support this week.
Now testing $1.05T resistance. A lot of room above that toward $1.15T.
— Justin Bennett (@JustinBennettFX) July 28, 2022
On-chain analysis firm Glassnode said Bitcoin’s mining pulse is “experiencing a sustained uptrend.” The company tweeted that blocks are coming in slower than the target 10 minutes, which means there is “continued stress in the mining industry as hash rate comes offline and difficult adjusts downwards.”
The #Bitcoin Mining Pulse is experiencing a sustained uptrend, indicating blocks are coming in slower than the target 10mins.
This signifies continued stress in the mining industry as hashrate comes offline, and difficulty adjusts downwards.
— glassnode (@glassnode) July 28, 2022
Ethereum is headed for the $1,800 mark, tweeted chartist Ali Martinez, noting the second-largest coin’s candlestick close above the $1,680 mark on a four-hour chart.
— Ali Martinez (@ali_charts) July 28, 2022