The crypto market has been more optimistic than ever. As expected during the summer, the market heats up just like the weather. Traders often spend more money on parties and vacations during this season, which makes them more eager to invest.
7 Days Heatmap
The 7-day crypto heatmap clearly shows that traders are more optimistic than ever, with the entire chart screaming bullish — BTC is up by over 1.5% and ETH by more than 5.7%.
BTC Analysis
As per our latest BTC update, it has been trading in a correction phase within the falling red channel.
However, the overall bias remains bullish, as BTC continues to trade within the rising blue and orange channels, reflecting the medium-term and long-term trends.
As long as the $107,000 support level holds, BTC’s momentum will remain bullish.
For the bulls to fully regain control and initiate the next major upward move, a break above the falling red channel is required. In that scenario, our medium-term target would be the upper bound of the orange and blue channels, around $140,000.
ETH Analysis
As per our latest market outlook, ETH broke above the last major high marked in blue at $3,590 and surged as if there were no tomorrow.
Now, as it retests the upper bound of the rising channel and the $4,000 resistance, we expect a short-term correction.
Since ETH has been bullish, trading within the rising red channel, we will be looking for trend-following long positions after each bearish correction.
In this case, if ETH retests the lower bound of the red channel — which aligns with the last major high — we will be looking for new long entries.
Quote of the week
Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes.
~ Jesse Livermore
Closing Remarks
In summary, the crypto market is showing strong summer optimism, with BTC up over 1.5% and ETH up more than 5.7% over the past week.
BTC remains in a bullish medium- to long-term trend despite its current correction phase, with $140,000 as a potential target if it breaks above the falling red channel.
ETH recently broke key resistance at $3,590, surged sharply, and is now facing $4,000 resistance. A short-term pullback is expected, with opportunities to re-enter longs if it retests the lower bound of its rising channel.
