Crypto Market Update: Bitcoin, Ether Rally, Altcoins Surge, But Caution Remains

The crypto market rallied on Wednesday, with Bitcoin (BTC) and other digital currencies posting notable gains. This upswing follows a sharp price decline over the past few days triggered by selling pressure from the bankrupt crypto exchange Mt. Gox and the German government.

According to data from CoinMarketCap, Bitcoin has risen 1.51% after a 3.36% drop over the past seven days, while Ether (ETH) reclaimed the $3,000 price level but failed to hold above $3,100. ETH has fallen more than 7% in the past week.

The Fear and Greed Index still reads ‘Fear,’ according to data from alternative.me, with a value of 28.

Conversely, spot Bitcoin exchange-traded funds (ETFs) saw $216 million in net inflows on Tuesday, as per data from SoSoValue. A July 10 report from K33 Research noted:

“Although Bitcoin ETF flows continue to be strong, BTC is currently plagued with the distribution of seized BTC from governments and Mt. Gox. ETH spot ETFs offer the only significantly bullish narrative for majors in the short term.”

Altcoins also saw significant price growth, with Avalanche (AVAX) up over 4%, alongside Shiba Inu (SHIB), which rose 1%. The second-largest meme coin, SHIB, also experienced a 347.32% surge in its burn rate, according to Shibburn data. Over 27.7 million SHIB tokens were burned in the past 24 hours.

As per the BTC/USDT chart provided by TradingView, Bitcoin is once again approaching its 200-day Moving Average, after dipping below it nearly a week ago. The last time the leading digital asset touched the 200-day MA was in October 2023. Notably, Ether (ETH), the native token of the Ethereum blockchain, has also followed a similar pattern and is trying to regain the 200-day MA.

Bitcoin reached a daily high of $59,740 but could not break above the $60,000 price level, while Ether peaked at $3,112 but bulls were unable to maintain price action above $3,100. Bitcoin’s Relative Strength Index (RSI) reads 40.85, confirming that selling pressure remains higher in the market, while ETH’s RSI of 38.73 suggests a similar situation. The gradient of the RSI for both cryptocurrencies indicates that buying volume is insufficient for a strong uptrend.