Crypto Bull Market at Risk as Bitcoin, Ethereum Fail to Escape From Downward Trend

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Crypto Bull Market at Risk as Bitcoin, Ethereum Fail to Escape From Downward Trend
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Market Analysis by Investing.com (Damian Nowiszewski) covering: BTC/USD, Bitcoin, ETH/USD. Read Investing.com (Damian Nowiszewski)'s Market Analysis on Investing.com

In last week's analysis, we highlighted potential short-term scenarios for Bitcoin and Ethereum with a focus on the potential support levels. Fast forward to today, and both are still experiencing corrective moves after taking out some of these levels on the way down.

Additionally, significant macroeconomic data from the US, scheduled for release on Thursday and Friday, is expected to increase volatility across the digital currency market. Moreover, since the value of Bitcoin has surged since 2014, many funds that will end up in so-called cold wallets may be poised to realize profits. If the anticipated accelerated withdrawals in July materialize, the market could remain susceptible to supply shocks.

A signal for a bullish reversal would be the negation of the recent supply impulse and a breakout above the short-term downtrend line.Despite recent declines, Ethereum remains stuck within a larger corrective price channel.

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