Crypto Taking a Deep Breath for One More Dive!

elcome to another crypto market outlook for the 8th of July!

In this edition, we'll delve into major assets such as US500, DXY, Gold, Bitcoin, and Ethereum, highlighting critical levels and potential trade setups.

From Bitcoin trading below $60,000 to Ethereum hovering within a massive support and the Fear & Greed Index signaling ‘Fear’ for an entire week, this article covers it all.

Are you ready?

‍‍Today, we will cover the following topics:

- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks

Market Heatmap and Fear and Greed Index

‍To initiate my research, I delved into the analysis by examining the market heatmap, which provided a comprehensive overview of the entire cryptocurrency market.

After breaking below the $60,000 round number, BTC dipped by over -3.16%, and ETH followed, closing the week down by -3.67%.

This bearish movement in BTC was reflected across the entire crypto market, with almost all altcoins ending the week on a bearish note.

crypto 7 days market heatmap showing bearish sentiment with BTC down by -3.16%. — *Crypto 7-Days Heatmap*

The Fear & Greed Index has been signaling "Fear" for an entire week, with the meter dropping significantly from 72 to 28.

This signifies that traders are pessimistic as the pre-summer period begins, a sentiment that usually lasts until mid-August.

fear and greed index dropping from 72 to 28 in one week. — *Fear and Greed Index*

US500, DXY and Gold analysis

‍We consistently monitor the US500 index to assess the current market sentiment. This practice is crucial because the cryptocurrency market often exhibits a significant correlation with the stock market, and this interconnection can impact its fluctuations.

US500 weekly chart trading above $5,500 round number within a giant wedge pattern. — *US500 Chart - Weekly Timeframe*

As per our previous market outlook, the US500 is still hovering around the upper bound of the wedge pattern marked in blue.

This week, the bulls maintained control by breaking above the $5,500 mark.

US500 4h chart bullish as long as the last low at $5,500 holds. — *US500 Chart - 4H Timeframe*

In the 4-hour timeframe, the US500 has been overall bullish from a medium-term perspective, trading within the rising channel marked in blue.

The bulls will remain in control as long as the last major low at $5,500 holds.

We consistently monitor the DXY - USD Index as part of our routine analysis. This persrucial because the value of nearly all assets, including BTC/USD, is closely tied to the USD, which serves as the benchmark currency in the financial market.

DXY daily chart overall bullish trading within a rising channel as long as the last low at $104 holds. — *DXY Chart - Daily Timeframe*

As per our previous outlook, DXY is still overall bullish, trading within the rising channel marked in blue.

As long as the last major low at $104 holds, a continuation towards the $106.5 - $107.5 resistance zone is expected.

DXY 4h overall bearish short-term unless the last high at $105.23 is broken upward. — *DXY Chart - 4H Timeframe*

In the 4-hour timeframe, DXY has been bearish from a short-term perspective, trading within the falling channel marked in red.

For the bulls to take over again, a break above the last major high at $105.23 is needed.

Gold hovering within a big range in the shape of a flat channel. — *GOLD Chart - Daily Timeframe*

Gold is still hovering within a broad range in the shape of a flat rising channel marked in red.

As per our previous analysis, Gold rejected the lower bound of the channel and is currently trading higher.

Gold 4h chart overall bullish as long as the rising trendline below the price holds. — *GOLD Chart - 4H Timeframe*

In the 4-hour timeframe, after breaking above the blue structure, Gold has been overall bullish from a medium-term perspective, trading above the blue trendline.

As long as the blue trendline holds, a continuation towards the $2,440 mark is anticipated.

USDT.D, Bitcoin and Ethereum analysis

‍As a standard practice, I begin my analysis with USDT.D as it serves as a critical indicator of traders' sentiment. USDT.D provides valuable insights into whether traders are optimistic, signaling increased investment in cryptocurrencies, or pessimistic, indicating a shift towards stablecoins.

USDT.D daily hovering within a narrow range between 5.45% support and the upper bound of the channel. — *USDT.D Chart - Daily Timeframe*

As per our previous outlook, USDT.D broke above the 5.45% resistance level and is currently approaching the upper bound of the channel marked in orange.

As long as the 5.33% support level holds, we anticipate a bullish continuation towards the 6% mark.

USDT.D 4h chart overall bullish as long as the last low at 5.13% holds. — *USDT.D Chart - 4H Timeframe*

In the 4-hour timeframe, for the bears to take over again, which would be healthy for the crypto market, a break below the last major low marked in red at 5.32% is needed.

BTC daily channel overall bearish trading within a falling channel and heading towards $52,000. — *BTC Chart - Daily Timeframe*

As per our previous outlook, BTC broke below the $60,000 support level and is currently trading lower within the falling channel marked in red.

As long as the bears maintain control, a continuation towards the $52,000 demand zone is anticipated.

BTC 4h chart overall bearish as long as the last high at $60,000 holds. — *BTC Chart - 4H Timeframe*

In the 4-hour timeframe, for the bulls to take over and shift the momentum, a break above the upper red trendline and the $60,000 round number is needed.

Meanwhile, BTC remains bearish and can still dive towards the $50,000 - $52,000 demand zone.

ETH daily chart hovering around the lower bound of the channel around $2,900. — *ETH Chart - Daily Timeframe*

After breaking below the $3,500 mark, ETH has been overall bearish, trading within the falling flat channel marked in red.

Currently, ETH is hovering within a massive support zone between $2,750 and $2,900, so we expect the bulls to kick in soon.

ETH 4h chart bearish until the last major high at $3,085 is broken upward. — *ETH Chart - 4H Timeframe*

In the 4-hour timeframe, for the bulls to take over and start the next upward movement leading to $3,500, a break above the last major high, marked in blue, at $3,085 is needed.

Quotes / Advices

‍During a crypto market meltdown, stay calm and avoid panic selling.

Reevaluate your investments, ensuring they align with your long-term goals.

Diversify to spread risk and avoid overexposure to any single asset.

Consider buying more if you believe in the asset’s fundamentals.

Emotional discipline and strategic thinking are key to navigating turbulent times.

Closing Remarks

‍In summary, the cryptocurrency market experienced a notable downturn this week. BTC declined by over -3.16%, and ETH dropped by -3.67%, reflecting a broader bearish sentiment across altcoins.

The Fear & Greed Index has shifted from "Greed" to "Fear," indicating increased trader pessimism as the pre-summer period begins.

The US500 index maintains a cautious outlook, hovering around the $5,500 mark. Bullish momentum is expected to persist if this support level holds.

The DXY Index shows bullish potential, aiming for the $106.5-$107.5 resistance zone, with short-term support anticipated to maintain an upward trend.

Gold is testing its support levels at the lower bound of its channel.

The USDT.D analysis shows bullish momentum, with a critical resistance zone at 5.33%-5.45%. Bearish pressure is expected if this resistance holds.

BTC and ETH remain bearish, trading within falling channels.

BTC needs to break above $60,000 for a bullish reversal, while ETH requires a break above $3,085 to shift momentum. Until then, both are expected to test their respective support levels.