As usual, CoinsPaid Media asked analysts and experts in the crypto field to share their comments on the current state of the cryptocurrency market and what to expect in the near future.
Sentiment in the Crypto Market Is Improving
According to Henrique Centieiro, Senior Research Manager at HashKey Capital, optimistic sentiment has emerged in the cryptocurrency market. The expert links it to the state of microeconomics: the CPI report revealed that the inflation rate in the U.S. fell to 8.5%, and wage figures were higher than expected.
“In terms of cryptocurrencies, the upcoming Ethereum Merge seems likely to take place on September 19-20 and is considered the most bullish crypto event of the year. Note that the price of Ethereum has risen from $900 in mid-June to $1,800 as of writing, more than doubling its value. It looks like Ethereum will continue to rise through September and after the Merge,” the expert shares.
The news that Blackrock, the world’s largest asset management fund, is partnering with Coinbase also positively affects market sentiment. Henrique believes that investors could bring billions and even trillions of dollars to the cryptocurrency market thanks to this collaboration.
“The economic outlook for the U.S., Europe, and the rest of the world remains pretty bleak, and the crypto market will still depend on macroeconomic factors and the Fed’s actions. However, Bitcoin, Ethereum, and the cryptocurrency market, in general, may soon experience a short-term rally. BTC quotes follow the 200WMA line, which is a good sign for the market. Bitcoin’s current position is above 200WMA — this could lead to even more positive market sentiment.
Finally, the unrest caused by the Terra, Celsius, 3AC, and Voyager collapses is starting to calm down, which means less uncertainty for the cryptocurrency market for the next month,” the expert believes.
Will the Crypto Uptrend Continue?
Şimal Hazal Sarısözen, Research and Content Specialist at KuCoin, says that the downtrend in the cryptocurrency market, which has been ongoing since November 2021, the Russian-Ukrainian war, the LUNA crisis, and tightening U.S. monetary policy have increased pressure on digital asset sales. This has led to liquidity shortages, and many companies have declared bankruptcy. According to the expert, the market is now in a calmer state.
“As the risks that were already on the table have been thoroughly estimated, and the flow of negative news has diminished, whales and institutional investors have begun to act. If we look at the on-chain data, we can see that whales are investing. According to a CoinShares report, corporate companies have been buying for five consecutive weeks. Given all of these events, we see continued positive pricing in the market.
Unless we witness another FUD flow in August or a new risk factor emerges, the upward movement in the market will probably continue, though not in a very sharp form. From a technical point of view, the $23,450-$23,460 range acts as resistance for Bitcoin. Another important feature of this short-term resistance zone is that it coincides with the secondary downtrend that has been going on since April 2022. If we see a daily or even weekly closure above the $23,450-$23,460 range, we may follow the uptrend towards the $26,166-$26,570 range,” predicts Şimal.
No Bull Market Expected This Year
Professional trader Murat Alayli said Bitcoin was supposed to hold around $27,000 in the first half of August, but once the quotes rose to the $25,000 level, sales began, pulling the price down. However, the trader believes that Bitcoin will still rise to $27,000 by August 17, 2022. The price of the main cryptocurrency may fall to $22,800 on Wednesday, the reason being that the outcome of the Fed’s meeting cannot be predicted.
“I don’t expect a bull market until the end of 2022. According to my calculations, the maximum price of BTC will be around $32,000. I also expect a double bottom for Bitcoin. After $27,000 we’ll probably see $17,000. Even if the market is in a more positive mood right now, many countries are still raising lending rates to fight inflation,” Murat says.
