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Futures Weekly Wrap (July 19th-26th): Bitcoin Hits a Fresh 6-Week High After a Rollercoaster Week

Binance Futures
2021-07-26 05:50
Bitcoin bulls have re-established dominance of the market in the past week as Bitcoin moved within striking distance of $40,000 - its highest mark in almost six weeks.
Bitcoin’s resurgence preceded a bad start to the week which saw prices dipping below $30,000. On Tuesday (July 20th), a fresh wave of selling hit the crypto market causing Bitcoin to fall over 3% to a low of $29,300. However, the bulls intercepted the move and turned the tide after Tesla CEO, Elon Musk, revealed at the B Word conference that the electric-car maker will most likely restart accepting Bitcoin as payments once it conducts due diligence on the amount of renewable energy used to mine the currency. Investors reacted positively following Musk’s comments as Bitcoin gained almost 8%.
The BTC dominance index slightly rose to 47.5%. The index, which measures Bitcoin’s market value relative to the entire crypto market, has made a remarkable comeback since the crash of May 19th, with altcoins performing much worse in this current correction phase.
As of Monday morning (UTC+8), Bitcoin is changing hands at $37,944, up over 20% on a 7-day rolling basis.
Source: TradingView
Bitcoin may be poised for a significant upward shift after it broke through the 7-month RSI channel, as shown in the chart above. RSI is a key indicator that is primarily used to check whether an asset is overbought or oversold. Bitcoin’s RSI levels have been on a 7-month downtrend and its recent breakthrough might suggest that a long-awaited trend reversal may be underway.
It is noteworthy that Bitcoin’s price has thrusted above the 20-day and 50-day Exponential Moving Average (EMA), signalling a change in short-term sentiment. If BTC price could maintain a foothold above the two EMAs, it would signal buyers’ intention to push Bitcoin towards the $42,000 region.
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In tandem with Bitcoin’s rally, altcoins made a significant recovery following weeks of underperformance. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, gained 22.5% over the past week to hit $2,291 on Monday morning (UTC+8).
Source: TradingView
ETH bulls regain control once again pushing prices above all key moving averages and the $2,000 support line. ETH’s recovery comes after a sharp dip on July 20th when prices fell as much as 7% to $1,700. Since then, ETH has displayed a remarkable comeback gaining almost 38% to a high of $2,340 at press time.
ETH’s price has now thrusted above the upper bound of a symmetrical triangular formation highlighted in the previous report. If Ethereum price can hold the level mentioned above as support, this breakout pattern could signal a start of a new bull trend for ETH.
Another major market mover was Axie Infinity (AXS), a blockchain-based trading and battling game that allows players to collect, breed, raise, battle and trade token-based creatures known as Axies.
AXS delivered a whopping 136% gain in the past week, driven by strong demand for Axie tokens. Axie Infinity has quickly become one of the highest-revenue projects on the Ethereum blockchain. Axie Infinity’s revenue is up over 17,000% since April 1st as user growth accelerated dramatically during the second quarter. Without surprise, AXS has been one of the fastest growing cryptocurrencies in recent weeks, bucking the trend of the broader market.
Source: TradingView
As a result, trading activity on AXS contracts rose to new heights. Trading volume on AXS contracts rose from $17 billion to $27 billion. Meanwhile, open interest rose from $75 million to $160 million.
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Market Movers on Binance Futures
With the increased trading activity and volatility, Binance Futures’ perpetual contracts have provided alternative venues for traders and investors to capture trading opportunities.
Source: Binance Futures
Disclaimer: The information provided in this section doesn't represent any investment tips or Binance's official position.

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