Bitcoin (BTC) Falls, Analyst Says No Rally Until Further Rate Raises

bitcoin fell below the $21,000 mark on Sunday evening as the global cryptocurrency market cap fell 1% to $957.1 billion.

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Why is it important: Cryptocurrencies fell on Sunday evening after showing strength over the weekend, with Bitcoin hitting a high of $21,600.64 for the period and Ethereum hitting $1,377.94.

Meanwhile, equities — risky assets that cryptocurrencies have consistently eclipsed in the recent past — were up at the time of publication. S&P 500 and Nasdaq futures rose 0.2% and 0.3%, respectively.

“Risk assets have suffered enough to be poised for a rebound here, but a sustained rally won’t happen until the Fed does a couple more massive rate hikes,” it said. Edward MoyaSenior Market Analyst at OANDA, in a note read by Benzinga.

Entering a fresh trading week, sentiment around cryptocurrencies remains weak. Alternative. I The Crypto Fear and Greed Index highlighted “Extreme Fear” at press time and was at 20. Last week the index was at 22. A value of 100 in the index represents “Extreme Greed” and a value of 0 indicates “Extreme Greed”. Fear.”

Cryptocurrency trader Michael van de Poppe said it remains to be seen how Bitcoin will perform after the weekend as the $21,200 level has been rejected.

“Overall, the strength is still there and I assume there is more growth going on. Critical barrier at the moment; 21 thousand dollars.

It remains to find out how #Bitcoin going to act after the weekend as $21,200 was rejected.

All in all, the strength is still there and I assume there is more growth going on.

Critical barrier at the moment; 21 thousand dollars. pic.twitter.com/8LBNOMl5kk

— Michael van de Poppe (@CryptoMichNL) July 16, 2022

Network analysis firm Glassnode said Bitcoin experienced two “huge” capitulation events this year, both of which caused the biggest loss in transfer volume for the top coin since 2011.

One of the events was the collapse Terra Classic (LUNC), resulting in a total loss of 538,000 BTC in transfer volume and another loss of 480,000 BTC in transfer volume as the market traded below its 2017 all-time high.

2022 saw #Bitcoin markets are experiencing two massive capitulation events, both with the largest $BTS the volume of transfers has been at a loss since 2011.

When LUNA collapsed, total transfers at a loss amounted to $538,000. $BTS.

Then followed 480 thousand. $BTS as the market traded below the 2017 ATH. pic.twitter.com/oKjBm4JgjE

— glass node (@glassnode) July 17, 2022

As for Ethereum, there is a lot of hype surrounding the price recovery. Market analytics platform Santiment reported that the second-largest coin by market cap surged 29% in July.

Santiment has also noted a spike in whale activity on the coin network at the 1,000 ETH to 100,000 ETH address level since May.

#Ethereum recovered quite well in July, up +29% MoM and +14% in the last 24 hours alone. In addition, the key has been increased from 1k to 100k. $ETH address level since the beginning of May, when 131 new whale addresses appeared on the network. https://t.co/uGfRQ4dEls pic.twitter.com/ri8MhGIP0o

— Sentiment (@santimentfeed) July 17, 2022

Chartist Ali Martinez said that Ethereum seems to be “breaking through” and set a target for the coin at $1,670.

#Ethereum seems to break through, the target is 1670 dollars. $ETH #ETH https://t.co/SeWDKDGDY9

— Ali Martinez (@ali_charts) July 16, 2022

Meanwhile, Ethereum Classic (ETC), considered by some to be the cheaper play on Ethereum, was among the leaders in intraday gains on Sunday night. The coin is up over 14% in 24 hours.

Read more: Wolf of Wall Street Says He Was Wrong About Bitcoin: ‘I Really Hated Cryptocurrency’