Crypto Briefing 7/8/22 - The Forecast

Crypto Briefing 7/8/22

Crypto Briefing 7/8/22

Bitcoin has been showing strength over the past few days along with the stock market, but we still remain cautious about the short term overall direction. With a danger period in stocks quickly approaching, we would wait in cash until this backtest occurs. There is always the risk of a black swan event occurring in crypto, and over the past few months, investors have seen crypto lending platforms such as Voyager go bankrupt in addition to major de-risking from stablecoins.  If Bitcoin’s bullish move is able to follow through, then we will expect to see $24,000 quickly. Even though sentiment is oversold, a possible scenario we could see is a false break out. After being in a downtrend for nearly a year, this move could instill a false sense of relief within retail investors, before we continue consolidating or making a lower low.  Most likely, Bitcoin will top next week and drop to form its final low of this correction.

Even though short term price fluctuations are what most investors are focused on, crypto should see a decisive rally into year-end.  With more institutions being given the green light to enter into crypto, we expect them to take advantage of the market’s current entry points. Projects such as Hedera Hashgraph, XRP, and XLM are at idyllic buying zones for smart money, and we expect these coins to have strong rallies into the end of this year – particularly if the XRP lawsuit is settled.  Cryptocurrencies have historically moved in speculative waves. Following Mark Zuckerberg’s announcement about Facebook rebranding to Meta in October, investors witnessed metaverse-related coins go on parabolic moves. Furthermore, during 2017 and 2018, ICO cryptocurrencies saw their own speculative boom and bust cycle. Once XRP is given regulatory clarity, we expect to see utility tokens finally have their time in the sun after years of consolidation. We plan to dollar cost average into more of our top rated altcoins throughout the August and the beginning of September in preparation of a strong Q4.