July will mostly be focused on the potential launch of a spot Ethereum ETF, but there are big events in store for Bitcoin and other key assets as well.
BeInCrypto has rounded up the major developments that are likely to impact the cryptocurrency market next month.
Bitcoin price could hit multi-month low
Bitcoin price is trading at $61,150 at the time of writing, above the $60,000 mark. Many were concerned that market uncertainty could cause it to fall below this level, but they were missing the bigger picture.
On the weekly chart, we can see that BTC is forming a double top pattern. This macro bearish pattern suggests that the asset may be reversing into a downtrend. We can see that Bitcoin price has fallen below the neckline at $61,483.
The drop may find some support at $58,874, but the pattern suggests a much bigger drop. The price target is set at $50,982, 17% below the neckline, which would mark a four-month low for BTC.
The likelihood of this happening is quite high, given that the “sell in May and be done” mentality continues to impact spot BTC ETF inflows. Combine this with the volatility in the cryptocurrency market, and the potential for a drawdown is very high.
Read more: The History of the Bitcoin Halving: Everything You Need to Know
However, Bitcoin price could also bounce back from $60,000 or $58,847, invalidating the bearish thesis, which would be confirmed if it reclaims $62,000 as support.
Arbitrum could hit new all-time low
While a price drop in Arbitrum is expected, the threat of a new all-time low is alarming. ARB, the second-largest Layer 2 token after Polygon (MATIC), has seen a significant drop in demand in recent weeks, leading to a significant price drop. Since early March, it has fallen more than 60% to $0.799, forming a head and shoulders pattern.
The Head and Shoulders pattern is a bearish reversal chart pattern with three peaks: a central higher peak (the head) flanked by two lower peaks (the shoulders). A breach of the neckline indicates a possible trend reversal from bullish to bearish.
Based on this pattern, a target price for Arbitrum is predicted to be $0. However, this is unreasonable as ARB is a fundamentally strong asset. The most likely outcome is that ARB will make a new all-time low as it is above the current low of $0.739.
A change in market sentiment could accelerate this decline, and ARB may see a new ATL by the end of July.
Read more: Arbitrum (ARB) Price Prediction 2024/2025/2035
On the other hand, if Arbitrum price can bounce back from $0.739, it will have a chance to break out above $0.929. If this attempt is successful, ARB could rise above $1.00, invalidating the bearish thesis.
NFTs are disappearing
Non-fungible tokens (NFTs) have made waves in 2022 but have performed disappointingly since then, with some activity and demand picking up in the first quarter of the year.
However, this recovery appears to have been short-lived: over the past three months, overall transaction volume has plummeted from $38.8 million to $7.9 million, a drop of 81%.
Read more: The 7 Best NFT Marketplaces to Know in 2024
The reason for this decline is twofold: first, the lack of innovation offered in the sector has resulted in minimal demand, and second, the rise in alternative investment options and assets such as real assets (RWA).
The rise of artificial intelligence (AI) tokens has also caught the attention of investors. Given the growth potential of AI, crypto investors are increasingly choosing AI.
As a result, NFT trading volume is likely to decline further as bearish market conditions and the aforementioned factors intensify.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. While BeInCrypto strives to produce accurate and unbiased reports, market conditions are subject to change without notice. Always conduct your own research and consult with an expert before making any financial decisions. Please note that our Terms of Use, Privacy Policy and Disclaimer have been updated.
