A multi-week fractal warns of a decline below $107,000, as market domination challenges 2020 resistance levels as the price of bitcoin looks for a breakthrough.
On July 10, as demand in riskier assets increased owing to expectations about Fed rate reduction this year, the price of Bitcoin (BTC) increased little, setting a new record high of $111,999. Bitcoin is currently testing the same resistance level it did in 2020 before to a significant breakthrough, and its market cap domination has increased to 65% as a result of these advances.
Bitcoin dominance approaches 2020 resistance as BTC moves past ATH
Bitcoin is attracting a lot of attention as most traders start making money after the price recently formed an all-time high. The current Bitcoin rise coincides with the market’s anticipation of interest rate reductions in 2025 and the forthcoming discussion of the CLARITY Act, which would open the door for more lenient crypto laws in the US, according to data.
As a result, according to CoinMarketCap statistics, the market capitalization of Bitcoin has increased to $2.21 trillion as of this writing, further increasing its domination in the cryptocurrency industry. This dominance was at a strong resistance level at 65.38% at the time of publication.
The last time the dominance surpassed this threshold as a result of a rise in the price of Bitcoin was in December 2020. In less than two weeks, the measure soared to 73% after breaking through this hurdle.
Overcoming this resistance level also led to an increase in the BTC price by 36% from $19,000 to $26,000 towards the end of 2020. In case history repeats itself and BTC records the same gains, a 12% increase will take it to $124,000.
However, given that a new ATH also indicates a strong resistance, the price of bitcoin has been rejected at this dominant level multiple times and there are currently no indications that this time may be any different. Does this growing dominance imply that the price of Bitcoin will plummet or rise?
What’s next for BTC price, $107K or $135K?
As Bitcoin crosses resistance in both its dominance and price performance on the daily chart, the technical structure unmistakably displays a mixed price prognosis. It is evident from examining Bitcoin’s performance since May that it is repeating a price fractal in which a drop to the support zone between $102,000 and $103,000 typically occurs after a new high.
If history repeats itself, Bitcoin might retreat after forming the recent high, with the immediate support being below $107,000, at the 61.8% Fibonacci level of $106,753. The possibility of this dip happening is further exacerbated by the resistance of the rising parallel channel, which, if the price fails to break, might also cause a correction.
However, there is still a chance that the price of Bitcoin will defy expectations and break over the resistance zone due to favorable market factors, such as the forthcoming crypto week. If this occurs, the price might hit the 261.8% Fibonacci level of $134,231, which could go to $135,000.
The increasing RSI allows the price of Bitcoin to continue to rise because its value of 62 indicates that the positive momentum is quite strong and that the currency is not yet overbought, allowing for more increases.
In conclusion, as the price of Bitcoin continues to rise, it is also encountering significant opposition and maintaining its dominance at multi-year highs. A decline to $107,000 could occur unless there is a change in buying patterns and more traders are prepared to purchase Bitcoin at all-time highs.
Just In: GameSquare acquires 1,818 ETH to launch $100M Ethereum treasury strategy
As part of its $100 million treasury plan, GameSquare completes a $5 million Ethereum acquisition with the goal of achieving yields of 8%–14% through DeFi protocols.
With a weighted average price of $2,749 per token, GameSquare Holdings has successfully acquired 1,818.84 Ethereum (ETH) for $5 million. The company’s $100 million Ethereum-focused treasury strategy, which intends to incorporate cryptocurrencies into its financial management methodology, has begun.
GameSquare Ethereum treasury strategy
The first step in GameSquare’s larger plan to create a crypto-native treasury is the acquisition of Ethereum. The business intends to employ Ethereum ecosystem assets and decentralized finance (DeFi) technologies to create sustainable returns with a $100 million authorization. GameSquare is using Dialectic’s Medici platform, which is well-known for its risk management and machine learning features.
GameSquare will be able to maximize its investments and aim for yields of 8% to 14% thanks to Medici’s platform. These yields are significantly higher than the average 3% to 4% returns on Ethereum staking. To implement this plan and improve its financial standing, GameSquare is collaborating with pioneers in decentralized finance, according to CEO Justin Kenna.
According to Kenna, GameSquare’s goal is to achieve risk-adjusted yields that are significantly higher than the going rate in the market. At the same time, after its Ethereum treasury strategy is complete, GameSquare intends to use the money raised for more ETH purchases, share repurchases, and investing in the business’s expansion goals.
Public offering boosts company’s funds
GameSquare has announced the successful execution of an over-allotment option in its recent IPO in addition to the Ethereum purchase. Under the direction of Lucid Capital Markets, the exercise produced an extra $1.2 million, increasing the gross proceeds to almost $9.2 million.
This cash infusion strengthens the company’s financial position and supports the continued advancements in the ETH treasury strategy.
The price at which GameSquare sold its shares during its IPO allowed the company to raise a sizable amount of money while maintaining its focus on long-term expansion. The extensive execution of the over-allotment option demonstrates the degree of investor confidence in the strategy and its potential for future GameSquare returns.
SharpLink Gaming and bit digital expand Ethereum holdings
Since more companies are increasing their Ethereum reserves, GameSquare is not the first company in the sector to approach Ethereum as a treasury initiative. As an illustration, consider SharpLink Gaming, which has been aggressively stockpiling Ethereum and recently paid $19.2 million to buy 7,689 ETH. SharpLink has acquired more than 205,000 Ethereum, making it the largest owner of the cryptocurrency that is publicly traded.
In order to generate a profit, SharpLink Gaming will also stake all of its Ethereum in staking and restaking protocols. In a similar vein, Bit Digital, which is listed on the Nasdaq, has sold all of its Bitcoin holdings in order to buy Ethereum.
The full $172 million that the company raised through a public offering was used to purchase Ethereum. Given that Bit Digital currently owns more than 100,000 ETH, this move between Bitcoin and Ethereum also demonstrates the growing corporate interest in ETH as a treasury asset.
BNB price targets $800 as Binance burns $1B tokens from supply
With an ascending triangle formation and a 1.5M BNB burn bolstering bullish sentiment, the price of Binance Coin is aiming for a 17% climb to $800.
After a modest 1.78% increase in just one day, the price of Binance Coin reached its highest level in a month today, July 10, trading at $672. Following the BSC Chain’s recent burn of 1.5 million BNB tokens from the supply, an ascending triangle pattern indicates that a 17% increase to above $800 may be on the horizon.
BNB price hits 1-month high as bulls target $800
The BNB token’s continuous gains are hardly exceptional, given that the larger cryptocurrency market is rising today on hopes that the Fed would lower interest rates. On the daily chart, a rising triangle pattern has been developing, and the latest advance has validated it, suggesting that a bullish continuation may occur.
The objective level of the BNB price, if it can break through the resistance level at $686, is indicated by the height of this rising triangle, measured from the lowest to the highest point. BNB was just 2% away from this goal price at the time of writing, and if the overall momentum of the cryptocurrency market continues to be positive, it may close above it shortly.
Based on this pattern, $806 is the next objective that the BNB token may reach if the purchasing pressure doesn’t decrease. By now, the price of this leading cryptocurrency will have reached a new all-time high.
Given its value of 60 following a string of higher highs that suggest bullish momentum is at work, the rising RSI is bolstering this prediction for the price of Binance Coin.
If the price falls below the rising triangle channel’s lower trendline, it would confirm that selling pressure is ready to rise and BNB may drop below $643, which would be the invalidation thesis for this technical setup.
1.5 million BNB tokens burned in 24 hours
An increase in the burn rate is the primary driver that might propel the price of BNB as it attempts to reach a new all-time high. Every quarter, the BNB Chain conducts its 32nd burn process, which resulted in the removal of 1,595,999 Binance Coins from circulation on July 10. The value of these coins exceeded $1 billion.
More than 60 million coins have been removed from the supply since the network started a burn process, leaving 139 million coins accessible.
Following Kraken’s introduction of tokenized US stocks to the network, the current burn coincides with a surge in user interest in the BNB Chain. The price of the Binance Coin may rise further as a result of this growing acceptance.
Therefore, a 17% increase might occur soon after the current burn, which occurs when the market as a whole is growing and demand is high. In addition, the impending breakout from a rising triangle pattern suggests that a new high above $800 may be imminent.
