Reasons Why The Crypto Market’s Mid-July Rally Might Be Temporary

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Last Updated on August 3, 2022 by Bitfinsider

Since the mid of July, the cryptocurrency market has experienced a smooth uptrend, with Bitcoin and Ethereum surging by more than 20% and 50%, respectively according to NextAdvisor’s crypto price data. Since it is a bear market rally, the upward momentum will likely only last a short while.

Additionally, leading exchange addresses are holding more cryptocurrency, and the market is approaching an inflection point that will determine the direction of future price movement.

Despite the fear mongering around the Fed rate hike and the recession, the cryptocurrency market is on the upswing. Although there were some concerns raised by Nancy Pelosi’s travel to Taiwan, they have now subsided. Today’s crypto market is experiencing a general market rally.

The increase in the cryptocurrency market will last just a short time, claims crypto expert CryptoBirb. Only 7% of cryptocurrencies are currently trading above the 200-day moving average, compared to 80% above the 50-day moving average. It denotes a bear market rally, the part of the bear market when prices increase.

Source: Twitter

He predicts that the market will rise for a while before an eventual reversing. Most cryptocurrencies’ values are currently climbing, with Bitcoin and Ethereum prices growing by 3% and 6%, respectively, to $23,559 and $1676, respectively.

The Ethereum Top Exchange vs. Non-Exchange Holdings data demonstrates that as traders sell their holdings, the amount of Ethereum held by the top exchanges increases, according to the on-chain platform Santiment. Since the beginning of 2022, dealers have sold a sizable portion of their holdings to the major exchanges.

Source: Twitter

For the first time since May 2021, the top 10 exchange addresses currently contain more than 7 million Ethereum. Top ETH exchange holdings falling will be a positive indicator for the price of Ethereum.

Bitcoin (BTC) Derivatives-Led and Spot-Led Rally

Over the past four years, Bitcoin (BTC) has experienced two different types of rallies: spot-led and derivatives-led. Volume is centered on futures exchanges rather than spot exchanges during the derivatives-led rally in 2019 and the beginning of 2020. Spot is not a major factor, the rise is brief, and smaller price increases occur.

The rally is lengthier and the price climbed significantly during a spot-led surge in the middle of 2020 and 2021 as a result of vigorous spot buying by investors. To find the finest investment opportunities in the future, investors must look for the “spot inflow index.”


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Are you new to investing and would like to find out more about investments and cryptocurrency? If you know nothing about a topic and want to become an expert on it, one fool proof way to start is to read good books about the topic.

If you read one book about a topic, you will be able to share knowledge or discuss the topic at an elementary level with almost everyone.

Read three books and you will likely know more than the majority of people and will be able to discuss the topic at an intermediate to expert level.

  1. The Intelligent Investor by Benjamin Graham
  2. Crypto Investing Guide: How to Invest in Bitcoin, DeFi, NFTs and More by Ian Balina
  3. The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology That Powers Them by Antony Lewis

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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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