BTC was able to provide a daily return of 11.15%.
After an impressive run-up by lower-cap altcoins, investors appear to have taken profits and moved to Bitcoin. Indeed, roughly $15 billion were injected into the flagship cryptocurrency on July 27th alone. Such a massive capital influx allowed BTC to smash through the $10,000 resistance barrier and march towards $12,000.
The pioneer cryptocurrency kicked off the day at $9,939.68 and within a few minutes after the weekly open its price was already hovering above the $10,000 mark. Moving past this milestone was considered by many market participants as a sign of further gains to come. As a result, more than 763 million Tether (USDT) flooded multiple cryptocurrency exchanges while buy orders began to pile up.
By 3:30 UTC, Bitcoin had already turned the $10,000 level in to support. However, after this happened, its price entered a consolidation period that lasted 12 hours. What came next was an 11.50% jump that saw BTC easily slice through the $11,000 hurdle to hit a new yearly high of $11,488.
Some investors took advantage of this price action to take some profits, which triggered a 6.16% correction. Subsequently, Bitcoin bounced off to close the day at $11,047.58. BTC was able to provide a daily return of 11.15%.
Ethereum Lets Bitcoin Take the Spotlight
While Bitcoin was making headlines, Ethereum seems to have sat on the sidelines letting it run the show. As a matter of fact, Ether only provided a daily return of 3.48% since most of the focus shifted towards the flagship cryptocurrency.
The smart contracts giant opened the week at $311.36 and within three hours its price rose by more than 6% to hit a high of $329.90. This price level appears to have been filled with a substantial number of sell orders since it effectively rejected the upward price action. Subsequently, Ether took a 5.73% nosedive to trade $0.36 lower than the weekly open.
From that point on, the bulls stepped back into the market allowing Ethereum to recover the losses incurred. The second-largest cryptocurrency by market cap shot up 7.72% to reach a new yearly high of $335. As the day came to an end, the selling pressure increased, and ETH plummeted 5.72% to $315.85. Ether was able to bounce back right around July 27th close to end the day at $322.30.
Technicals Spell Trouble
Despite the impressive price action that Bitcoin enjoyed throughout July 27th, multiple bearish signals are popping up suggesting that it is bound for a pullback before the uptrend resumes.
The Tom Demark (TD) Sequential index presented sell signals across the 4-hour, 9-hour, and 1-day chart that might be validated by a spike in sell orders. Under such circumstances, BTC could drop towards $10,500 or even $10,000 before it continues making higher highs.
Along the same lines, the aforementioned technical index presented the same bearish signal on Ethereum’s daily chart. An increase in the selling pressure behind ETH may add credence to the pessimistic outlook, which could result in a retracement towards $300 or less.
It is worth mentioning that the only way these sell signals would be invalidated is if Bitcoin and Ethereum are able to turn the recent highs into support. If this were to happen, BTC may aim for $12,000 while ETH might rise to $360.
Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.