Bitcoin has experienced a decline of over 3%, dropping below $116,000 for the first time since 11 July. This fall poses a threat to recent consolidative momentum, suggesting a potential further decline toward $110,000 if Bitcoin cannot maintain its current level.<\/p>\n
Despite the setback, Bitcoin is still up nearly 8% in July, though not matching the performance of Ethereum, which has surged by 45% this month. Ethereum, despite a recent near 3% drop, has seen its upward momentum stall around $3,800, with current prices testing levels closer to $3,600.<\/p>\n
The $116,000 level remains critical for Bitcoin’s potential recovery, whereas Ethereum’s next major support is the $4,000 mark. However, for Ethereum to reach this, buyers may need to exhibit patience as the current market conditions unfold.<\/p>\n
Given the challenge to bullish momentum that Low describes, we believe traders should prepare for increased volatility. A break below the key line in the sand he identifies could trigger a sharper move toward the lower end of the recent range. This makes purchasing protective put options with strike prices near $60,000 a prudent strategy to hedge any existing long positions.<\/p>\n
Recent data reinforces this cautious view, as we’ve seen six consecutive days of net outflows from U.S. spot Bitcoin ETFs, totaling over $870 million. This sustained selling pressure from institutional products adds credibility to the idea that the price could return to lower levels. We are viewing this as a sign that the market is currently absorbing a significant amount of supply.<\/p>\n
This period of consolidation is not unusual when we look at historical data. After the 2020 halving, we saw a similar multi-month phase of sideways trading before the next major leg up. Therefore, we interpret the current lull not as a definitive end to the bull market, but as a potential accumulation phase requiring patience.<\/p>\n
Regarding the second-largest cryptocurrency, its significant outperformance this month is directly tied to market anticipation of spot Ether ETF approvals. We are closely watching the updated S-1 filings from major asset managers, which analysts now predict could lead to a trading launch in early July. This potential catalyst is why traders are favoring it over the leading digital asset.<\/p>\n
This situation presents a compelling opportunity for a pairs trade, going long on Ethereum futures while simultaneously shorting Bitcoin futures to capture the relative strength. For options traders, bull call spreads on ETH with target strikes below the key $4,000 mark could be an effective way to speculate on the pre-ETF rally. We see this as a way to capitalize on the diverging narratives between the two assets.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin falls below $116K, threatening momentum; Ethereum outperforms but stalls near $3,600 amid market caution.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27264","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=27264"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27264\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=27264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=27264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=27264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}