The crypto market has started July off on a positive note. Though June forced sizeable losses across the market, a positive start to the new month has given many altcoins a new lease of life.
Bitcoin [BTC] has gained 6.26% from the low of $57,800 made on July 1, and the altcoin market cap, including Ethereum, has expanded by 4.05%.
In a post on X, crypto analyst Axel Adler Jr. explained that the Bitcoin Open Interest fell by 23k BTC, though net taker buy volume was $68 million. The lack of growth in OI, despite aggressive buying in the perpetual markets, suggested a lack of fuel to sustain the upward move.
A lack of bullish follow-through can negatively impact altcoins, including ZCash [ZEC]. The token was up 5.28% in 24 hours, but its OI has grown by only 1.33%, indicative of a lack of speculative interest.
AMBCrypto reported that a ZEC whale had opened a $8.1 million long position, but that the price structure remained bearish. Here’s what ZEC bulls need to see before they can bet on a sustained uptrend.
The former range above $500 is pivotal for revival
The 1-day chart showed a bearish internal market structure. The $486.61 low made in mid-May fell below the local range’s low, but the buyers were not able to defend this demand zone for long.
The subsequent waves of selling forced a price drop below $400 on two occasions in the weeks since this bearish breakdown.
At the time of writing, the CMF was at +0.08 to show significant buying pressure. The recovery from $176 earlier this year was part of a longer-term uptrend, but as things stand, the $480-$540 supply zone must be overcome to revive the idea of a bullish recovery.
If, instead, ZEC falls below the $360-$380 local support zone once again, swing traders and investors can expect the move to continue toward the next support level at $300.
Final Summary
- The $360-$380 local support zone and $480-$540 resistance zone were the key battlegrounds ZEC swing traders must watch.
- If the short-term Bitcoin bounce fails to gain traction, a momentum reversal could hurt ZEC and push it back below $400.
