Bitcoin was
down 7.2% on Thursday, ending it at around $18,800. Ethereum lost 8.7%, while
other leading altcoins in the top 10 fell from 4.4% (BNB) to 10.6% (Dogecoin).
However, Bitcoin greeted the new day, month and half-year with buying. In a
thin market early in the day with Asia predominantly active, this spurred the
price up 11% to $20,800, quickly deflating to $19,400.

In other
words, we see attempts to create the appearance of buying the dip in bitcoin.
Still, the rise in price entails increased selling – a typical sign that
institutional and market professionals are “dumping” the asset to retail
investors guided by the price chart.

By Friday,
the cryptocurrency fear and greed index remained unchanged at 11 points
(“extreme fear”).

intensified its decline on Thursday after breaking the $20,000 level. BTC
tested 11-day lows near $18,600 amid a plunge in stock indices.

Last month
was one of the worst for bitcoin, with BTC losing 41% of its value, falling
short of historical trends.

In terms of
seasonality, July is considered a relative success for BTC. Over the past 11
years, bitcoin has ended the month up seven times and down four times. The
average rise was 22%, and the average decline was 9%. In the first case, BTC
could end July at around $23,000. In the second, it could end July at about

According to
Deutsche Bank, Bitcoin could recover to $28,000 by the end of 2022 on the back
of a likely rally in US equities.


Bank believes the crypto market could bottom out soon, after which bitcoin and
other crypto-assets will consolidate. Most traders with margin positions have
already washed out of the market.

We continue
to maintain our position that there remains a sellers’ advantage, and the
slowest of them will be careful to sell the crypto market on upside attempts.

According to
BitInfoCharts, bitcoin’s fall from historic highs has stripped some 75% of
investors (82,600) of their millionaire status.

Capital founder Dan Morehead is confident that it’s too early to talk about a
“bottom” of the market. He expects several more defaults by companies in the
sector shortly – similar to the story of Three Arrows Capital.

cryptocurrency dealer Genesis Global Trading could face hundreds of millions of
dollars in losses due to the loss of liquidity of counterparties Three Arrows
Capital and Babel Finance.

Lee Reiners,
director of the Center for Global Financial Markets at Duke University in North
Carolina, believes digital currencies have no real value and should be banned.

This article was written by FxPro’s Senior Market Analyst Alex

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