Few movements in cryptos; experts anticipate a calm week

The queen cryptocurrency is back trading in the range in which it has been moving in recent weeks after suffering a sharp correction in the final hours of last Friday. Bitcoin reached a new yearly high of $31,814.52 after Ripple's partial victory against the Securities and Exchange Commission (SEC) and then fell to just shy of $30,000 at the close of last week. However, the price managed to recover somewhat over the weekend.

Joe DiPasquale, CEO of BitBull Capital, pointed out that this correction was to be expected after the "overheating" experienced following the Ripple ruling. However, the expert believes that "we are unlikely to see Bitcoin trading below $27K for long" after this correction, so "the market is likely to consolidate around the current zone for now."

Javier Molina, senior market analyst at eToro, stated that, from a technical point of view, we are still in a "consolidation zone bounded by $29,500 and $31,000". "Attempts to attack either level have not worked and we are waiting for some kind of relevant news," Molina commented.

Similarly, the expert stressed that "the accumulation of small and medium-sized investors continues, with 69% of the supply not moving in the last year, the wait on the Blackrock ETF, which can generate massive inflows of flows and the doubts that remain about the SEC and the security tokens".

"If prices are able to break above $31,000, the medium-term structure would change and we would pose a very bullish scenario with first target at $36,000 and $41,000 as the next benchmark. However, if we are not able to overcome $31,000, the scenario would return to the downside, with the main support at $25,000 if we lose $29,500 first and $28,000 as the second support," he added.

Experts agree that there might not be big movements in the queen cryptocurrency this week due to the lack of major scheduled events or the publication of important macroeconomic references. In fact, the market's focus is on the results season, which kicked off last week, for which the consensus expects "a year-on-year drop in the second quarter of 7% in what will be the largest since the second quarter of 2020 and the third consecutive quarter of declines," stated Molina.

"As of today, 6% of S&P 500 companies have reported second quarter 2023 results. Eighty percent have reported earnings per share above expectations and on average, they are seeing earnings 8.8% above estimates. It will be very important to watch that "surprising" data and what the forecast is. That is what will really impact the stock markets," he added, while pointing out that "there is great diffusion depending on the sectors being considered".

In this regard, Johnny Teng, a researcher at LBank Labs, believes that Bitcoin's movements will be influenced by "open interest levels, reflecting trader sentiment, and trending topics such as memes and artificial intelligence." "As retail traders may have missed out on last week's price movement, their enthusiasm to participate in the market is likely to increase," he added.

In other market news, Ripple (XRP) remains hot, leading the gains among the major altcoins. In the rest of the major cryptos, there´s some lukewarmness, with falls of almost 3% in Binance coin (BNB) standing out.