Yet again, the crypto market has dropped following a strong weekend rally. The market approached a key resistance zone led by a weekend rally in altcoins. BNB, for instance, rallied to a new all-time high on Sunday before breaching it to a new one earlier today. Ethereum, on the other hand also topped to $3,900 before retracing. Meanwhile, Bitcoin has remained range-bound. 

But, despite the strong optimism across altcoins, the market seems to be slowing down as we move into the final week of July. This week, market participants expect key US economic data to affect the crypto market. Let’s see the current state of the market and what to expect before August clocks in. 

Crypto Market Losses $32 Billion

Crypto market’s rally towards $4 trillion has once again faced resistance. According to data by TradingView, the market has lost a total of $32 billion today. This dip marks a 0.82% drop as the market retraces from the gains recorded over the weekend. As of this writing, the total crypto market cap (TOTAL) sits at $3.86 trillion down from $3.90 achieved on Sunday July 27. 

With the crypto market dropping, strong support lies around $3.79 trillion. In case this level is breached, the market could continue to drop with the next support at $3.7 trillion. Any plunge below this level could shift the power to bears despite the recent bullish outlook. 

On the other hand, if the crypto market holds the current level and continues to rise, it could recover the losses. However, the market is facing strong resistance around $3.92 trillion regions. A clearance of this level could boost a rally to $4 trillion yet again potentially reigniting bullish momentum. 

Bitcoin’s Range-Bound Price Movement Continues

The price of Bitcoin (BTC) is currently at $118,373 as per the BTC/USDT daily chart on TradingView. While the king crypto kickstarted the day around $119,500, the current level marks a retrace but still within the consolidation phase. BTC has been consolidating between $117,200 and $120,000 for most of the last two weeks. 

At the moment, the $120,000 mark has been acting as a strong resistance since the coin reached an all-time high of $123,200 in Mid July. For Bitcoin to advance upwards, it has to clear this resistance level. This would open the door for a rally towards a new all-time high, especially if bulls back the rally. 

Conversely, if BTC fails to hold the current level, the dip will continue. Bitcoin currently has strong support at the $117,247 level. In case this level is breached BTC could fall towards $114,803 support or even lower to the strong support at $110,599. Such an occurrence would, however, wipe out all the recent gains. 

Ethereum Continues to ‘Chart the Path’ for Altcoin Season

Earlier today, Ethereum (ETH) continued to put up an impressive show as it rallied past $3,900, a level previously reached in Mid December 2024. However, the coin has retraced to $3,887, as indicated by the ETH/USDT daily chart on TradingView. 

In case bullish momentum continues, Ethereum could finally breach the psychological $4,000 resistance. Such a rally would open up the door to higher gains such as the $4,405 level or even higher towards a new all-time high. ETH’s current ATH sits at $4,721 and was recorded back in November 2021. 

If the bullish momentum fades, Ethereum will face a correction. A key support zone sits at $3,627 price level. A deeper dive below this level would bring the price down to the next support at $3,375. At this point, short-term investors would trigger a massive sell-off invalidating the current bullish outlook. 

Crypto Market Watchers Await Fed’s Interest Rate Cut Decision 

This week, crypto market participants are highly anticipating the release of a major decision. According to a post by web3 community manager MD Dodo, this week will feature the Fed rate cut decision, which has the potential to affect the price of Bitcoin and the general crypto market. 

Scheduled for Wednesday July 30, the US Federal Reserve will issue its interest rate cut decisions. Afterwards, Fed Chair Jerome Powell, who has been under fire recently, will make a speech commenting on the financial policy. 

In June the overall US CPI moved up to 2.7% in June while the US Core CPI (excluding Food/Energy) moved up to 2.9%. Both of them marked the highest level since February 2025. 

Based on the rise, crypto experts expect that the Fed will make no change in interest rates. One expert, for instance, noted;

“48h for the FOMC, what should we expect? Powell decision: ‘NO CHANGE’. Fed will not change rates.” 

But, the main thing crypto watcher will be watch out for is any hint of an interest rate cut in September. Normally, when the Fed lowers interest rates, the crypto market booms and vice versa. Market participants must thus keep watch of the Fed’s rate cut decision as it could affect the prices of top cryptocurrencies.