Pre Open US - Cryptocurrency 21 July 2023

Bitcoin and other cryptocurrencies experienced a decline on Friday, with digital assets continuing to perform worse than the stock market. This trend is concerning for the overall sentiment toward cryptocurrencies.

Market data suggests that unpredictable sellers are putting downward pressure on crypto prices, which is different from the stock market, where investor optimism and positive sentiment have been driving stocks higher in recent weeks. Although cryptocurrencies and stocks are distinct, some Bitcoin enthusiasts view the decoupling of token and equity prices as a positive aspect. Nevertheless, both asset types remain sensitive to risks and have shown similar dynamics this year, especially in response to interest rate and recession concerns.

In an unexpected turn of events, Tesla, the electric vehicle and clean energy company, has removed Bitcoin from the source code of its payment page. Surprisingly, Dogecoin remains unaffected by this change. This development has triggered speculation among cryptocurrency enthusiasts, particularly due to Tesla's previous involvement with both cryptocurrencies.

From a technical standpoint, Bitcoin (BTC) continues experiencing a range-bound price action formation, with the resistance level at 31,800 and the support level at 29,900. Traders are paying close attention to the weekly chart, specifically watching for a potential breakout above the 100-day moving average (100MA). A successful breakout above this level has the potential to drive the price toward the initial resistance at 36,000.