Bitcoin Reaches Highest Level in One Week; 220,000 Ethereum Transferred; Here Is What Analysts Say About the Market’s Next Move

Bitcoin increased on Thursday to reach its highest level in more than a week as recent economic data reduced investor concerns that inflation would be too hot to control.

The largest cryptocurrency in the world by market capitalization increased by more than 5% to reach intraday highs of $21,847 on July 7; this was the first time it has done so this month.

Despite alarming signs of 220,000 ETH being moved to exchanges the day before, the price of Ether increased by 8% to reach $1,254. On July 6, Ethereum experienced a net move of more than 220,000 coins into exchanges, the greatest day amount in 11 months, according to Onchain analytics company Santiment.

A much-needed respite came for the beleaguered cryptocurrency, which has dropped more than 50% year to date due to monetary tightening and a run of recent liquidations in the crypto market, thanks to a stock market surge that saw the S&P 500 rise for four straight days.

Over the past 24 hours, gains of between 3% and 13% were recorded by other cryptocurrencies.

Here is what analysts say about the market’s next move

According to Craig Johnson, chief market technician at Piper Sandler Companies, key levels to watch for Bitcoin are $18,910, a level that prices have twice fallen beneath in mid-June, and $21,557, around its late-June highs.

There are no fundamentals for cryptocurrency, Johnson stated that it was just price action. “You’re simply going to look at this and say that until you break out of that range — up or down — you are not going to draw any conclusions about a trend change yet. We’re just short-term consolidating in the context of a longer-term downtrend.”

A close over $26,000 or $28,000 might eventually halt the token’s downward trend, which has been going on since April, according to Johnson.

“A lot of the institutional holders of Bitcoin may be particularly sensitive to the general way that the economy is moving. If the jobs report comes back really weak, inflation comes back even worse, and it looks like a number of the geopolitical issues that are influencing the prices on a number of these core economy assets are not improving, I can’t imagine that that is short-term bullish for Bitcoin,” said Jared Madfes, partner at Tribe Capital.

Bitcoin traded at $21,609 at press time.

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