Cryptos fall again; Bitcoin drops 4% in July
Cryptocurrencies are back in the red. Bitcoin (BTC) lost positions, around 1%, and has dropped to $29,200, while Ethereum (ETH) has fallen 0.9% and moved away from $1,900.
The rebound experienced in the last session after the Federal Reserve (Fed) rate hike has just been a mirage and cryptos have practically lost everything they gained. In the last five days, Bitcoin has dropped nearly 3% and so far this month the fall amounts to 4%, which is pretty bad data given its trend at the end of June and historical returns in the month of July.
Trying to guess where digital assets, especially the reigning cryptocurrency, will move to now seems tricky. The effect of the latest price catalysts has completely dissipated and Bitcoin is not only moving back into the $29,000 to $31,000 range that we have been warning about so much, but this has widened and could push the reigning cryptocurrency into further declines.
This is what César Nuez, technical analyst at Bolsamania, believes, as he who stresses that the "weakness" observed in the queen cryptocurrency could end up provoking an attack on the $28,000 support.
"The key support is at $24,745. As long as it keeps trading above these prices, we will not see a sign of weakness that would complicate the current uptrend in which it has been moving since the latter stages of last year," he explained.
Experts seem to agree that until the positive news flow is restored, cryptocurrency movements will remain lackluster. In this regard, it is worth noting that Grayscale asked the Securities and Exchange Commission (SEC) to clear all Bitcoin spot exchange-traded funds simultaneously and not "pick winners and losers."
Separately, Binance filed a motion to dismiss a lawsuit filed last March by the Commodity Futures Trading Commission (CFTC) accusing the company of "numerous violations" of federal securities laws.
In the rest of the altcoins market, there are downward movements. Highlights include drops of 3% in Dogecoin (DOGE), which seems to have deflated after the good performance of recent sessions, and Polygon (MATIC). Solana (SOL) continues to fall sharply, dropping more than 2% in the last 24 hours.