Over the past week the digital asset market did hold the important 240 billion level and on Friday, June 29th, just as CME futures closed, a buyer stepped in and bid the market up 25 billion dollars in just a few minutes. As this market matures, the volatility will most likely decrease as more liquidity comes in on both the buy and sell side. Lower volatility will attract more institutional capital with a longer term time horizon.
I have mentioned this 240bb area of support in a few of my prior pieces, and it has turned out to be a major line of support.
With a support line now re-established, the areas of minor resistance come at the 300bb, 350bb and 400bb market cap levels. The major resistance at the late March and late May highs in the 450-470bb area.
These levels on the upside continue to be mentioned again and again in my prior pieces, and with good reason. To some, it may seem unfathomable that the blockchain market is maturing, but it is. This market is in a major consolidation area, and a huge range. There are many sub ranges which are each about 50 billion dollars, but the major range has now been confirmed, with 240bb being the support, and 465bb being the resistance. The current trading band shows support at 240 and resistance at the 300 level.
The longer the “w” bottom takes, historically, the stronger the rally is that will ensue. This market may consolidate in this lower trading band for a longer time period than normal, as it appears to me that many of the buyers who bought the market on each dip since the all time highs are more skeptical. This is a positive, as it tends to lead to more sound investment decisions in the longer term.
As the market rose, what did Bitcoin’s market share do ? BTC dominance fell slightly.
With the holiday shortened week because of the Independence day holiday in the US, volumes in the major asset classes I follow were all well below average. In the past week, US Equities were largely unchanged, US Treasuries moved less than one basis point and even Gold which had quite a few up’s and down’s is in the same place as it was a week ago.
Moving to $pac, this project is also in a period of price consolidation. The major support comes in at the .004 are its US Dollar pair, and major resistance comes at the .0075 level. This .0075 level has been resistance, and sellers have come in on higher than normal volumes two times in the past 4 months.
With many funds and institutional investors on holiday in the states, the price action will most likely be quieter than normal.