The crypto markets have remained relatively stable over the weekend and on July 4, which is a holiday for the United States financial markets due to Independence Day. Although Arthur Hayes, former CEO of derivatives platform BitMEX, was expecting a “mega crypto dump” around July 4, it has not materialized.
The drop in Bitcoin’s (BTC) volatility in the past few days has resulted in the squeezing of the Bollinger Band’s width. This indicates a possible increase in volatility in the next few days, according to popular analyst Matthew Hyland.
Meanwhile, crypto investors seem to be waiting for clues from the U.S. equities markets and the U.S. dollar.
Bitcoin’s correlation coefficient with the dollar in the week ending July 3 slumped to 0.77 below zero, the lowest level in seventeen months. The majority of the analysts surveyed by JP Morgan expect the dollar to end at or below the current price levels of about 105. Any weakness in the dollar could be beneficial for Bitcoin.
Could bulls start a recovery in the short term? Let’s study the charts of the top-10 cryptocurrencies to find out.
The failure of the bears to extend Bitcoin’s decline below $19,637 suggests a lack of sellers at lower levels. The bulls will now attempt to push the price back above the resistance at $19,637.
If that happens, the BTC/USDT pair could rise to the 20-day exponential moving average (EMA) ($21,255). This level could again act as a stiff resistance but if bulls clear this hurdle, the pair may rise to the overhead zone between $22,000 and $23,362.
A break above this zone could open the doors for a possible rally to the 50-day simple moving average (SMA) ($25,710). The bulls will have to overcome this barrier to signal a potential trend change.
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