Daxian Talks about Coins: Bitcoin's market share declined on July 22! Ethereum's market is ready to move!

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Cryptocurrency investment products have sparked a gold rush, according to digital asset management company CoinShares. Global cryptocurrency funds saw a net inflow of $4.39 billion last week, surpassing the previous high of $4.27 billion after the US election in December last year, creating a new historical record.
  
  This is the 14th consecutive week of net inflows, indicating sustained investor interest in cryptocurrency funds. Year-to-date cumulative inflows have reached $27 billion, driving the overall management assets of global cryptocurrency investment products to a new historical high of $220 billion.
  
  Bitcoin continued to lead last week's fund inflows, attracting $2.2 billion, slightly slowing from the previous week's $2.7 billion. However, the spotlight was stolen by Ethereum, the second-largest cryptocurrency by market cap.
  
  Ethereum-related investment products have seen net inflows for 13 consecutive weeks, with last week's inflow reaching $21.2 million. This not only set a new weekly record but was almost double the previous week's $1.2 billion, pushing the year-to-date cumulative inflow to $6.2 billion, exceeding the total for 2024.
  
  In contrast, Bitcoin's market share dropped 5.8% week-on-week to below 61%, the largest weekly decline since June 2022 and the lowest level since March this year. As the cryptocurrency market value rapidly expanded from $3 trillion to $3.8 trillion in the past 3 weeks, Ethereum has been leading this growth, with competing currencies rising and gradually replacing Bitcoin as the market's focus.
  
  With Bitcoin consolidating below $120,000 and its positive correlation with other cryptocurrencies weakening, this trend often signals imminent market volatility and potential liquidation of key levels. At the time of writing, Bitcoin was priced at $117,199, down approximately 0.94% in the past 24 hours.
  
  Ethereum's strong upward momentum has created a market sensation, with some celebrating and others worried about approaching short positions. With abundant short positions in the market, if Ethereum successfully breaks the psychological level of $4,000, an estimated $331 million in short positions could be liquidated, further strengthening Ethereum's upward momentum. At the time of writing, Ethereum was priced around $3,743, up approximately 3.5% in the past 24 hours.
  
  Bitcoin 4-hour chart
  
  The current price is running near the middle Bollinger Band, which appears horizontally extended, indicating a market consolidation phase. The distance between the upper and lower Bollinger Bands is gradually narrowing, suggesting decreasing market volatility and potential accumulation of breakthrough energy. The MACD indicator shows the DIF and DEA lines almost converging, with the MACD histogram in green near the zero axis, indicating a relatively balanced power between bulls and bears. The KDJ indicator shows K and D lines running around 50, with the J line falling to around 34, displaying an overall weak oscillating characteristic.
  
  Key Fibonacci retracement levels show 61.8% at 119,038 forming an upper resistance, 50% at 118,439 creating a bull-bear contest zone, and 38.2% at 117,843 potentially providing short-term support. If the price breaks below the 23.6% level at 116,443, it may trigger a deeper pullback. A clear descending trend line on the BTC 4-hour chart continues to suppress price movement, and if unable to break through effectively, the price may continue to explore support around the 116,000 area.
  
  Comprehensive analysis suggests closely monitoring price breakouts of the Bollinger Bands. If the price breaks below the lower band and MACD forms a death cross, further decline may occur. Conversely, if the price breaks above the upper band and MACD forms a golden cross, a rebound may be expected. If the KDJ indicator forms a death cross pointing downward, it will strengthen short-term pullback pressure; if it forms a golden cross pointing upward, it may drive price testing of upper resistance.
  
  Based on the above, here are some recommendations:
  
  Recommendation 1: Long BTC when it pulls back to 115,700-116,000, defend at 115,000, take profit at 119,000.
  
  Recommendation 2: Short BTC when it rebounds to 118,500-119,000, defend at 119,200, take profit at 116,000.
  
  A 100% accurate suggestion is less valuable than providing the right perspective and trend. Learning the approach is more important than a single recommendation. My goal is to use my practical experience to help you make investment decisions and management plans that are on the right track.
  
  Writing time: (2025-07-22,02:50)
  
  (Article - Master Coin Talk)

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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