Bitcoin and Ethereum both gain but ETH price action takes the prize as Bitcoin cools momentum.
Bitcoin (BTC) took a step back as Wall Street trading began on July 22 after recovering most of its previous losses.
BTC bulls fail to sustain assault on multi-week high
The pair had spent the past 24 hours slowly clawing back lost ground after news that Tesla had sold most of its BTC holdings.
With the pre-announcement high of $24,280 still in force, bulls saw something of a setback as Wall Street opened on the day, with BTC/USD losing around $400.
Analyzing the current order book structure on major exchange Binance, on-chain monitoring resource Material Indicators warned that the overall bear market structure remained in control.
As you can see a good portion of the bid liquidity we saw yesterday has moved up to get filled. and that helped push #BTC back above $23.5k (for now).
That's short term bullish in a bear market rally. pic.twitter.com/S4oiyj5Rlt
— Material Indicators (@MI_Algos) July 22, 2022
“Extreme lows and drops usually results in a revert to the mean move, or relief rally. Basically sellers are exhausted and buyers step trying to buy the bottom, causing a relief rally,” popular trader Crypto Tony added, reiterating that “the main trend remains bearish currently.”
United States equities were similarly muted on the day, with the S&P 500 and Nasdaq Composite Index seeing modest declines on the open.
The U.S. dollar index (DXY), in consolidation during the week, continued its downturn, targeting 106 for the first time since July 5.
Ethereum runs the show among altcoins
While also coming off its local highs, Ether (ETH) still gave analysts plenty to be excited about.
ETH/USD hit $1,640 on the day, marking its highest level since June 11 before returning to linger around the $1,600 level at the time of writing.
$ETH recover starts to look as V-shaped.
Resistances to look @:
$1700 which i thing will be destroyed.
Stronger $2.5ks, which also is 61.8 fib retracement, if fomo kicks in i'm finally expecting $3.2ks, 78.6% fib.
— Wolf (@IamCryptoWolf) July 22, 2022
“Textbook bull flag breakout as Ethereum continues its hot streak,” trading software provider TrendSpider told Twitter followers about the ETH/USD daily chart as the highs entered.
Ethereum was once again the leader in terms of daily gains among the top ten cryptocurrencies by market cap. Versus its lows from just 10 days prior, ETH/USD was up 62%.
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