Bitcoin Forecast to Maintain Stable Fluctuation Trend in Summer After Technical Adjustments.
Ethereum and Bitcoin are in an overbought state, with high adjustment risks as liquidation and funding costs show signs of tension in the cryptocurrency market.
- Bitcoin may continue to accumulate and fluctuate within the current range until August.
- Ethereum is facing significant pressure from open contracts and rising funding costs.
- The White House's cryptocurrency policy report has been delayed, primarily focusing on Stablecoin.
How Might Bitcoin's Price Trend Maintain in Summer?
According to the latest Matrixport report, Bitcoin is forecast to maintain an accumulation state in summer, making it difficult to break through the important resistance level around $122,000 in the short term.
Despite Bitcoin previously breaking through the main resistance and establishing a higher price zone, technical charts show a slight adjustment. The market is witnessing increased selling pressure as initial investors take profits, causing Bitcoin's price to drop about 0.6% in the past week. Therefore, the quiet market period in summer is predicted to last at least until August.
Matrixport's head of research emphasizes: "Prolonged stability could be the necessary preparation for a larger movement in the final quarter." This assessment is also supported by on-chain data about cash flow and investor sentiment.
Why is Ethereum Experiencing Significant Pressure from Open Contracts and Funding Costs?
Matrixport points out that Ethereum's open contracts have increased rapidly recently, leading to increasingly high funding costs and downward price pressure.
As funding fees rise, they can reduce investor confidence in ETH's upward momentum, with many traders tending to close positions to protect profits. Technical indicators on the ETH chart also reflect an overbought state, increasing the risk of deeper corrections.
The increase in open contract momentum and funding costs is a clear sign that the market needs a reasonable adjustment period.
John Lee, Matrixport Analysis Director, July 2024
This not only affects Ethereum but also indirectly impacts the entire Altcoin ecosystem as capital flows out of leveraged positions.
White House Cryptocurrency Report Delayed and Policy Significance
The White House decided to postpone the cryptocurrency report originally planned for July 22 to July 30, focusing more on policies related to Stablecoin rather than Bitcoin reserve strategy.
This delay indicates that the government is cautious about decisions to ensure financial system stability while controlling risks arising from Stablecoin Tokens with potential liquidation instability.
Stablecoin policy will be the focus of this report, aimed at creating a transparent legal framework and protecting consumers.
Susan Miller, Financial Policy Advisor, July 2024
A deeper analysis suggests this change may guide the market towards prioritizing control of non-traditional assets, creating a solid foundation for sustainable cryptocurrency industry development in the United States.
Detailed Comparison of Ethereum and Bitcoin Market Pressures in Summer 2024?
| Criteria | Bitcoin | Ethereum |
|---|---|---|
| Technical Trend | Accumulating, difficult to exceed $122,000 | Overbought, high correction risk |
| Open Contracts | Stable | Rapidly increasing, driving funding costs |
| Funding Rate | Relatively low | High, creating profit-taking pressure |
| Market Impact | Stable liquidation | Declining liquidation due to selling pressure |
Frequently Asked Questions
Can Bitcoin Break Out of the Accumulation Zone in Summer?
Experts note it's very difficult in the short term due to profit-taking selling pressure, with the market forecast to continue accumulating until August.
Why Do Ethereum's Open Contracts Strongly Affect Price?
Increasing open contracts raise funding costs, causing traders to close positions early to avoid risks, creating downward price pressure on ETH.
How Will New Stablecoin Policies Affect the Market?
The policy helps control risks and increase transparency, creating a stable foundation for the US cryptocurrency ecosystem.
Will the White House Cryptocurrency Report Impact Bitcoin Price?
The report focuses more on Stablecoin than Bitcoin, with an indirect influence and minimal immediate impact on BTC price.
Can the Cryptocurrency Market Strongly Recover After the Adjustment Period?
Technical data and investor sentiment suggest the market may be preparing for a new wave of increase by the end of 2024.
