The bullish momentum in the cryptocurrency market throughout July appears to be waning as the new month begins.
The crypto market has lost 3.7% in the past 24 hours, with the total market cap once again falling back below $1.1 trillion.
More than $50 billion has pulled out of the field since the weekend and seven-week highs, in what appears to be a cooling off of a bear market easing rally.
Markets were spared the double whammy of last week’s macroeconomic news as the Federal Reserve hiked rates and the country slipped into a technical recession.
However, with cryptocurrencies being a sea of red, the bears appear to have regained control of things today.
Bear market relief rally
On-chain analytics provider Glassnode in its “Weekly on the chain“The report determines “whether this is the beginning of a bear market easing rally or a sustained bullish impulse.” “
Despite the recent rally, Bitcoin’s price action has been range-bound since its epic crash in mid-June. It failed to break the key resistance level of just over $24,000 and has fallen back below $23,000 today.
Glassnode confirmed this, saying “current network activity suggests that the influx of new demand is still minimal.” It added that trading has been moving sideways to slightly lower, suggesting that only “high-conviction traders and investors have A stable foundation remains.”
Low transaction demand, address activity, and low fees all suggest things are “firmly in bear market territory.”
According to Woo Charts, Bitcoin is currently trading at the 200-week moving average of $22,872, just above its actual price of $21,816.
Glassnode data analyzes last week’s crypto market moves, but does not factor in the declines of the past two days, which may be even more bearish.
Bitcoin’s 2.3% daily drop is not as bad as its brethren have suffered. Ethereum, which has been driving market momentum of late, fell 7 percent on the day to $1,576, according to CoinGecko.
Binance Coin (BNB), Cardano and Solana are all down 4%-6%, while Polkadot (DOT) is down 12.7% on the day.
All on-chain signs point to the recent rally being just a bit of relief from the bear market, with further declines likely as the crypto winter drags on.
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