Decentral Block Post

Bitcoin (BTC) continues to trade near the $31,000 level, making it an important resistance to watch out for in the short term. Some analysts believe the current consolidation could result in an upside breakout in Bitcoin.

The institutional investors also seem to be positive about the prospects of a further rally in Bitcoin. CoinShares’ head of research James Butterfill said in a recent report that 98% of all the digital asset inflows of $334 million went into Bitcoin-related products.

Although the short-term price action on Bitcoin and select altcoins looks positive, market participants should stay cautious due to the uncertainty regarding the macroeconomic issues. The crypto markets are likely to be influenced by the United States inflation figures and the Federal Reserve’s monetary action over the next few weeks.

What are the important near-term support levels on Bitcoin and altcoins that need to hold for the recovery to continue? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin broke and closed above the $31,000 level on July 3 but the bulls could not build upon this strength. This suggests that the bears have not yet given up.

Litecoin (LTC) price is down today, mirroring downside moves elsewhere in the crypto market.

On July 5, the LTC price dropped over 3% to $100.50. On the same day, the crypto market's overall capitalization fell 2%, suggesting traders have started securing profits at the local tops of multiple cryptocurrencies.

Litecoin's RSI turns "overbought'

Litecoin rallied by more than 65% to reach a year-to-date (YTD) high of $116 on July 2.

The gains appeared primarily due to euphoria around its halving in August and its listing on EDX Markets, a newly-launched exchange backed by Wall Street giants like Citadel Securities, Fidelity Investments, and Charles Schwab.

Since then, however, LTC price has corrected by nearly 14%, including the 3% drop on July 5. One reason is its overbought relative strength index (RSI) on the daily chart, which typically prompts the price to drop or consolidate sideways. 

Litecoin's price is down today, mirroring downside moves elsewhere in the crypto market.

On July 5, the Litecoin (LTC) price dropped over 3% to $100.50. On the same day, the crypto market’s overall capitalization fell 2%, suggesting traders have started securing profits at the local tops of multiple cryptocurrencies.

Litecoin’s RSI turns “overbought”

Litecoin rallied by more than 65% to reach a year-to-date high of $116 on July 2.

The gains appeared primarily due to euphoria around its halving in August and its listing on EDX Markets, a newly launched exchange backed by Wall Street giants like Citadel Securities, Fidelity Investments and Charles Schwab.

Since then, however, the LTC price has corrected by nearly 14%, including the 3% drop on July 5. One reason is its overbought relative strength index (RSI) on the daily chart, which typically prompts the price to drop or consolidate sideways. 

Starknet’s Quantum Leap upgrade has been deployed on testnet, with the Ethereum layer-2 scaling protocol claiming it's capable of processing "hundreds of transactions per second."

If achieved, it would be at least a 50X improvement from its current throughput, thanks to the Version 12 upgrade harmonizing how the sequencer's code interacts with the Cairo programming language.

A Starknet fact sheet states that the "time to inclusion" after the upgrade goes live on mainnet "will be under 15 seconds" meaning DApps will be able to confirm transactions on-chain within seconds.

Co-founder Uri Kolodny was a little more circumspect in an interview with Cointelegraph, stating that the upgrade has hit "triple figures" during testing so far.

If this throughput is mirrored in real-world usage — and high TPS is as much a function of demand from users as technical capability — the upgrade would be a huge leap for Israeli firm StarkWare's decentralized scaling network.

There is a common belief that when the U.S. dollar declines relative to other main global currencies, as measured by the Dollar Strength Index (DXY), the impact on Bitcoin (BTC) is positive, and vice versa.

For instance, the DXY index dropped from 103.0 on Jan. 2017 to a 92.6 low on Aug. 2017, while Bitcoin rallied from $1,000 to $4,930 in the same period. But is there enough evidence to justify a bull run similar to 2016–17, as some analysts are arguing?

But is there enough evidence to justify a bull run similar to 2016–2017, as some analysts are arguing?

Is the Bitcoin-dollar inverse trend real?

Traders and influencers frequently warn about this negative correlation and how a reversal of DXY will likely push the Bitcoin price higher.

Investment research @GameofTrades_ recently posted a chart presenting the pattern in early 2023 and then repeating itself later in May. There’s some indisputable evidence of the inverse correlation there.