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# Bitcoin Bounces Back to $119,000 After Dipping Below $120,000; Ethereum Stalls Post Rally as Market Seeks Direction
Bitcoin (BTC) has rebounded to $119,000 after briefly plunging below the key $120,000 resistance level. This recovery signals a phase of consolidation for the leading cryptocurrency. Similarly, Ethereum (ETH) has paused its upward rally after achieving a remarkable seven-month high. The crypto market, now exceeding a $4 trillion capitalization, is eyeing its next move amid mixed signals. According to CryptoPotato, three critical factors this week could heavily influence the cryptocurrency landscape.
# U.S. Economic Data: Durable Goods Orders Under Spotlight
Many U.S. economic indicators set for release this week are expected to have minimal influence on cryptocurrency markets. On Wednesday, existing home sales data for June will be published, followed by the global Manufacturing and Services PMI (Purchasing Managers' Index) for July on Thursday. While these metrics provide vital insights into economic performance, their impact on digital assets is deemed relatively limited.
However, one standout report warrants attention: the June Durable Goods Orders, slated for release on Friday. According to Martin Young, this indicator serves as a critical gauge for manufacturing activity and big-ticket consumer spending, which can indirectly sway broader market risk appetite. Consequently, its outcome could trigger subtle shifts in crypto market sentiment.
On the monetary policy front, the Federal Reserve is widely expected to maintain its current interest rates at July's FOMC meeting. Federal funds futures reflect a 95.3% probability of unchanged rates, as inflation data signals moderation. For now, the central bank seems poised to adopt a "wait-and-see" stance, which aligns with broader market stability.
# Big Tech Earnings: Will Optimism Meet Reality?
The spotlight is also on the U.S. tech sector as earnings season kicks off for major players in the industry. This week, Alphabet (Google's parent company) and Tesla lead the "Magnificent Seven" in reporting Q2 results.
Chuck Carlson, CEO of Horizon Investment Services, remarked, "This earnings season is crucial as it follows a major market rebound led by tech stocks." With sky-high valuations in tech, failure to meet lofty expectations could trigger broader market corrections. Such corrections may spill over into risk-sensitive assets, including cryptocurrencies like Bitcoin and Ethereum, adding to short-term market turbulence.
# Technical Analysis: Bitcoin Consolidates While Ethereum Cools Off
As of this weekend, the total cryptocurrency market capitalization surged past $4 trillion but has since retraced slightly. Despite this minor pullback, the market remains strong, up 17.6% year-to-date, underscoring a continued bullish trend.
Bitcoin experienced a brief dip to $117,000 on Sunday evening but recovered to $119,500 during the Asian trading session. Having lost its critical $120,000 support last week, the flagship cryptocurrency now appears to be consolidating around the $119,000-$120,000 range.
Ethereum made headlines after it surged past $3,800 on Sunday, reaching a seven-month high. However, it has since cooled slightly to $3,798. Over the past two weeks, ETH has rallied by a notable 46%, leading market gains and igniting broader interest in altcoins.
Altcoins also performed exceptionally well during the Asian session. Dogecoin (DOGE) soared 9.1% to $0.27, Cardano (ADA) climbed 5% to $0.87, Stellar (XLM) jumped to $0.48, and Chainlink (LINK) advanced 5%, edging closer to the $20 psychological barrier.
# Outlook: Key Trends to Watch in the Crypto Market This Week
Looking ahead, this week’s crypto market momentum will likely hinge on a combination of factors: tech earnings reports, Bitcoin’s test of its $120,000 resistance, and altcoin price movements. Notably, macroeconomic data such as the Durable Goods Orders report could add an unexpected twist.
With the total crypto market capitalization nearing the $4 trillion mark, investors are closely monitoring whether a broader altcoin-driven rally will materialize. Alternatively, we could see a market-wide pullback as traders reassess support and resistance levels for leading assets like Bitcoin and Ethereum.
Stay tuned as a mix of macroeconomic signals, earnings sentiment from Big Tech, and technical analysis charts help define the short-term direction of the cryptocurrency market.
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