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The month of July is primarily focused on the potential launch of spot Ethereum ETFs. However, Bitcoin and a few other crucial assets have something equally huge ahead of them.
BeInCrypto has compiled what major developments you can expect in the next month that could impact the crypto market.
Bitcoin’s Price Could See a Multi-Month Low
Bitcoin’s price, at $61,150 at the time of writing, is holding itself above the $60,000 mark. While many feared that the market’s uncertainty could have pulled it below this level, they missed the bigger picture.
BTC on the weekly chart can be seen forming a double-top pattern. This macro bearish pattern signals that the asset may be set for a downward trend. Bitcoin’s price can be seen breaking below the neckline at $61,483.
This breakdown might find some support at $58,874, but the pattern suggests a much larger decline. The target price is set 17% below the neckline at $50,982, which would result in a four-month low for BTC.
The possibility of this happening is rather strong, considering the “sell in May and go away” notion continues to impact spot BTC ETF inflows. Combining this with the volatility of the crypto market, a drawdown is very possible.
However, Bitcoin’s price could also bounce back from $60,000 or $58,847 to invalidate the bearish thesis. This would be confirmed once $62,000 is reclaimed as support.
Arbitrum Could See a New All-Time Low
Arbitrum’s price decline is expected, but the threat of a new all-time low is alarming. ARB, the second-largest Layer-2 token behind Polygon (MATIC), has seen its demand dwindle significantly in recent weeks, leading to a massive price drop. Since early March, it has fallen by over 60% to $0.799, forming a head and shoulders pattern.
A head-and-shoulders pattern is a bearish reversal chart pattern with three peaks — a higher middle peak (the head) flanked by two lower peaks (the shoulders). Once the neckline is broken, it indicates a potential trend reversal from bullish to bearish.
Based on this pattern, Arbitrum’s target price is projected at $0. However, this is absurd because ARB is a fundamentally strong asset. The most likely outcome is a new all-time low for ARB, as it is currently sits above the current minimum of $0.739.
Shifting market sentiment could accelerate this decline, and before the end of July, ARB could see a new ATL.
On the other hand, if Arbitrum’s price manages to bounce back from $0.739, it could take a shot at breaching $0.929. A succesful attempt could send ARB above $1.00, invalidating the bearish thesis.
NFTs Are Dying
Non-fungible tokens (NFTs) gained prominence in 2022, but their performance since then has been disappointing. Some resurgence in activity and demand occurred in Q1 this year.
However, this revival appears short-lived. Over the past three months, overall trading volume has plummeted from $38.8 million to $7.9 million, marking an 81% decline.
The cause behind this drop is twofold. First, the lack of innovation offered in this space has left its demand minimal. Second, there has been a rise in alternative investment options and assets such as real-world assets (RWA).
The rise in Artificial Intelligence (AI) tokens has also drawn investors’ attention. Given AI’s potential for growth, crypto investors are leaning more toward choosing them.
As a result, the NFT trading volume could decline further as bearish market conditions and the aforementioned factors gain strength.