So today we’re going to be going over 3 very important dates that are happening in July that could be massive catalysts for the cryptocurrency market. And of course, we’re going to go over some other news that you need to know to be fully up to date in this crazy market.
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Let’s jump straight onto the crypto bubbles. As we can see here, overall, the market is kind of red today.
Something interesting to note here is that GMT is down 5.3%. I pointed out exactly this coin and said this is an opportunity. Obviously, I don’t know exactly what’s going to happen next. I’m not saying I told you or I told you so or anything like that, but I said this coin was pumping out of the ordinary compared to the rest of the coins. We’re seeing the same thing here with CVX. Obviously, I have no idea what’s going to happen next, but in a bear market when we see coins pumping out of the ordinary right. I think GMT was maybe 19% or something like that. That’s the opportunity we see in the market, and we can short those coins. So, a 10x short here on GMT with leverage would have given you a 50% return today.
Moving on to today, we do have the cryptocurrency market down 1.6% and sitting at just under $900 billion. Most of the market is red today, as we’ve seen, but things are not too drastic right now. We’re just seeing our normal sideways action that we’ve been seeing for a while now over on Bitcoin. As we can see here, we are still very much just traveling sideways around that $20,000 mark.
That’s pretty much exactly what happened here. So if we do get another bad catalyst, which we are going to be talking about, we could see another trapdoor moment open up like we saw right here. Like I’ve been saying, the levels that I’ll personally be watching around this mark here at $14,000 would be the first line of support. I’d be watching very closely. Of course, if we repeat what we have done in previous bear markets, we can see that we did have an official bottom of 83%, so something to expect something that may very well happen would be an $11,500 bitcoin. Prepare yourself for the worst case scenario, but plan for the best. That way, you can make the best of the entire market.
Moving on now, if we head over, we do have the obvious Terra Luna Classic down today at 1.56%.
I’ve been saying this for a while. The interesting thing about Terra Classic is that it’s becoming a community-based meme hype coin, and this would be the first meme hype coin that has its own blockchain that developers can build on. So this is interesting. It’s a new use case for that meme community-driven coin, and I think it’s quite exciting. They do have the burn coming in the 1.2% burn on every transaction, but again, I don’t want to spread too much opium around this because we would need all of the major exchanges to come on board with this, and even if they did, it would take over a year to burn a significant number of these coins. I think the dollar cost averages between hype and meme coins. If you do have a massive appetite for risk, it could potentially pay off if we do go back into another bull run, whenever that might be a few months or a few years from now. You need to have a high tolerance for risk, but it’s definitely something we’ve seen pay off in the past.
Let’s move on to some good news and the dates that we need to look out for. So, first of all, we have got bitcoin is now in the deep green zone, which has signalled the market bottom on four separate occasions, and we are exactly in those areas right now.
This is another clear reason why I am personally dollar cost averaging into bitcoin still to this day. I also have that the Celsius network has paid off another $40 million towards bitcoin loan liquidation price, which a lot of people have been worried about. It’s now dropped to $2,700, which means it’s most likely not going to happen again. I’m sure Michael Sailor is doing similar things here.
So I think that these mass liquidations that everyone was expecting to actually mash the market down lower than $14,000 may not even happen. That’s not to say that we won’t go lower than $14,000, but it’s definitely good to see that the panic is starting to dissipate. This whole panic of these huge exchanges dropping is starting to slow down, which is a good thing.
Now let’s talk about the three important dates that we have coming. First of all, on July 13th, we have the inflation marker, the CPI data, coming out. If the data comes out and it’s better than what people expect, this could be very bullish for the short term for the market and could instigate a dead cat bounce, which we are going to discuss in a second.
Moving on, we have the 26t- 27th. This is the Fed interest rate again. So last month, we had a 75 basis point rate hike in June. Now, if we have the same or higher, this is going to be a bad catalyst for the market, in my opinion, But if we have a lower rate hike, a 25 to 50 point hike, this could be very bullish again for the market, which could push us into the dead cat bounce that a lot of people are expecting here.
If you’re not sure exactly what a dead cat bounce is, if we head back to 2018 here at the top of the bull market there, around $19 -20,000, we crashed a significant way, around 43%, and then we saw this bounce here happen, and that was around a 50% bounce. That would be known as a dead cat bounce because we continued downwards after we again saw a drop here of around 67%, followed by a dead cat bounce of a 100%. So, these are possibilities, right? These are definitely still possibilities that we may see come into this market right now.
A 60% bounce would set us at around that $31,000 mark and a 100% would, of course, put us right at $39,000. So there are not huge numbers here. These could be opportunities for you to make a profit on the way up or a profit on the way down, using leverage over on copy trading bot. If you do fancy doing that but also getting out of your positions that you have been holding for a long time that you don’t want to be in, these are things that you can consider if we do have a nice little bounce here.
Moving on to the last day, which will be July 28th, where the Bureau of Economic Analysis will release an advanced estimate of the US GDP for the second quarter of 2022. Once and for all, deciding whether or not we are in a recession. I think it’s pretty clear that we are going into a recession, but this will be concrete. We are in a recession or we are not in a recession. That’s what we’ll be finding out on the 28th of July. Those are the important dates. Put those on your calendars. On top of that, we do have bitcoin shrimp and whales buying aggressively right now. This is something interesting right now. We’ve got the biggest players in the game and the smallest players in the game, both accumulating while the people in the middle are not doing much.
And finally, we do have a rebuttal from coin loans that actually reduced their withdrawal limits. We spoke about this yesterday, but they claim they have no exposure to Luna, Celsius or 3AC.
So potentially, like some other exchanges, they’re only minimizing the withdrawals to slow down the bank run that is happening in the markets. A bank run means people are flooding the exchanges to get their crypto off, which is dangerous for these exchanges because, obviously, they have loans. They have all these other things. They have their money floating around.
So this is what they want to try to avoid, and maybe this is the reason why they’re doing it. With that said, if I was you guys and I had my long-term holds, I would take them off the centralized exchanges and put them in cold storage. You can do that with Metamask or, even safer, you can get yourself a ledger.
[This article is a transcription of a video made by Conor Kenny]
Original video: https://youtu.be/dO-mULTjzSc]