Bitcoin Bears Looking to Gain Position But New Money Pumping In Would be Beneficial

After yet another dull week, Bitcoin is currently at $9,200.

Still, the world’s leading cryptocurrencies are recording green of 1.45% with under $1 billion in ‘real’ trading volume.

While bitcoin is in a rut, random altcoins are enjoying this time to record substantial gains.

Today’s winner is, a Binance-backed online travel agency, whose token AVA is up 28% on the back of its partnership with Expedia, allowing the latter to book hotels in crypto.

As for bitcoin, the market is currently anticipating a downwards move that could see the digital asset slide to about $8,800.

“Btc trendline retest completed. If bear case is valid, break down should follow on volume, sweeping lows and forcing bulls out of positions,” noted trader Crypto Yoda. However, for now, bears’ case is invalidated.

Crypto trader Ezy Bitcoin has called out for a breakdown to $8,600 and then on to the moon but, of course, with periodic pullbacks as we have seen during previous cycles.

Meanwhile, Henrik Zeberg, a macroeconomist who called for bitcoin’s decline to $1,760 this month, is now noting that Bitcoin is not breaking down, and RSI has started to look bullish.

But he did say, “Not necessarily bullish! Structure is the same. Lows will come.”

Trader, The Crypto Dog, is not expecting much upside from Bitcoin either, at least not until Q4, and sees $12,000 by the end of the year.

Stronger than normal

The US stock market jumped higher before opening as investors focused on the prospect of the expansion of economic stimulus to counter the impact of the spreading global pandemic.

Coronavirus cases increased by about 56,000 on Sunday as total cases in the US looked to surpass 3 million while the death count rose to 152,571.

“With U.S. states continuing to post record cases into the July 4 weekend and the World Health Organization likewise having reported a one-day high in global infections over the weekend, the battle between the Covid-19 drag and improving economic conditions continues,” wrote Jingyi Pan, a market strategist at IG Asia.

June employment data was stronger than forecasted last week, and Goldman Sachs Group economists predict that the US economy will be back on track in September. Meanwhile, Congress will resume talks on the next stimulus bill later this month.

According to JPMorgan, the “debt creation and QE will continue to be stronger than normal,” and the “total money or liquidity creation could exceed $15 trillion or more globally by the middle of 2021.”

“These elevated cash holdings create strong background support for non-cash assets such as bonds and equities, but given how low bond yields are at the moment… we believe that most of this liquidity will eventually be deployed into stocks as the need for precautionary savings subsides over time,” it said.

And all of this could potentially benefit Bitcoin. The new money pumping into the system would push investors to look for assets with higher yields because an increase in money supply devalues the currency and diminishes its purchasing power.

The fact that bitcoin is anti-inflationary, unlike fiat, and is decentralized makes its store-of-value narrative stronger. And global central banks’ actions in 2020 may only strengthen this proposition.

Bitcoin (BTC) Live Price

1 BTC/USD =$34,265.2471 change ~ 0.98%

Coin Market Cap

$643.03 Billion

24 Hour Volume

$11.17 Billion

24 Hour VWAP

$34.32 K

24 Hour Change


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