Decentral Block Post

Bitcoin’s price gave back some of its recent gains this week, but multiple data points suggest that $30,000 should hold as support going forward.

Bitcoin (BTC) remained within a narrow 4.3% range for the 15 days leading up to July 7. Despite the proximity of the $29,895 to $31,165 range, investors’ sentiment was significantly impacted by an unsuccessful attempt to break above $31,400 on July 6.

Traders’ tendency to overreact to short-term price movements rather than Bitcoin’s year-to-date gains of 82% could be part of the reason for the short-term correction. This same rationale applies to the events related to other cryptocurrencies.

At the forefront of investors’ minds are questions about whether the recent price gains were solely driven by multiple spot Bitcoin exchange-traded fund (ETF) requests.

Other pressing developments include Binance’s chief strategy officer, Patrick Hillmann, and other top compliance officers reportedly leaving the exchange on July 6 over CEO Changpeng Zhao’s response to the United States Justice Department’s investigation. On June 29, the crypto exchange also informed users that its euro banking payment gateway would cease services by September, potentially halting deposits and withdrawals via SEPA bank transfer.

Lawyers representing Elon Musk and Tesla asked a United States district court judge to toss out a motion to have them sanctioned over alleged conflicts of interest in a $258 billion lawsuit alleging Musk participated in an illegal racketeering scheme related to the Dogecoin cryptocurrency.

In a filing dated July 6, Musk and Tesla’s team responded to the June 25 motion filed by Evan Spencer, a lawyer representing the plaintiffs in the case against Musk.

Spencer referred to the defendants’ lawyers as “yes men” in his filing and asked the judge to declare it a conflict of interest for the team to represent both Musk and Tesla. “Defense counsel is acting in this case as concurrent representatives of both Defendants,” reads the complaint, “while their real loyalty is to Elon Musk alone.”

Related: Elon Musk accuses Mark Zuckerberg of cheating: Twitter vs. Threads

The legal team representing Musk and Tesla minced no words in their response, referring to Spencer’s motion as “unsubstantiated” and “frivolous” three times in the table of contents alone.

Ether has been on a downward trend, with the $2,000 level forming a crucial resistance level in recent months.

While Bitcoin (BTC) recorded 11.94% gains, moving past $30,000 in June after BlackRock filed an application for an exchange-traded fund with the Securities and Exchange Commission in the United States, the upside in Ether (ETH) stayed around 3.16%.

In the first week of July, buyers attempted to move the price past crucial resistance at around $1,900. However, a failed breakout exposed the price to further correction.

The Ethereum network also witnessed a decline in activity, evident in the one-year-low levels in total transaction fees. The price of leading nonfungible token (NFT) collections on Ethereum plummeted, while decentralized finance (DeFi) activity stalled due to low yields.

However, the downside may be limited, as the demand for liquid staking derivatives (LSDs) like Lido’s stETH continues to grow, rising faster than investors are moving to sell.

Bitcoin is still struggling to stay above $31,000.

While a tight consolidation near the overhead resistance is a positive sign, the failure to rise above it may result in short-term liquidations. However, a shallow pullback should not be considered a trend change because, many times, the bulls take a step back to regroup and launch another attack at the resistance. If the barrier is overcome, the positive momentum picks up.

Binance CEO Changpeng “CZ” Zhao said in an “ask me anything” session on Twitter that Bitcoin (BTC) could witness a bull year after its halving in 2024. CZ added that BlackRock’s foray into cryptocurrencies will be “hugely beneficial” for the industry.

BlackRock CEO Larry Fink made positive comments about Bitcoin while speaking in an interview with Fox Business on July 5. Fink said that Bitcoin was an “international asset not based on any one currency,” and investors could use it as a hedge against inflation or currency devaluation.

Could positive comments from Fink act as a floor during pullbacks? What are the important overhead resistance levels in Bitcoin and altcoins that need to be crossed to signal the start of a short-term up move? Let’s study the charts of the top 10 cryptocurrencies to find out.

On today’s Macro Markets show, veteran stock market and Cointelegraph analyst Marcel Pechman starts by analyzing Argentina’s 150% inflation, which proves that people continue to work and consume (somehow) even if their local currency loses its value.

What is the lesson here? For starters, everyone wants free money. That explains why altcoins and airdrops continue to attract attention, regardless of whether the majority of investors end up being unprofitable.

You might think that those investors would quickly learn their lesson, but in reality, quite the opposite occurs. All it takes is a new marketing strategy — a new way of promising free money — just like the Argentines have a tendency to forget the mess the governments have caused over the course of 10 years.

For Pechman, the bottom line is: Forget any promise of free money or dividends that don’t come explicitly from economic activity.

The show’s next segment covers the topic most loved by economists: the inverted yield curve. This event happens when shorter-dated Treasurys have higher returns than longer-term ones, suggesting the United States Federal Reserve will hurt the economy.