Why did the crypto market bullish on July 18?

The total market capitalization of crypto (TOTAL) has surged after America first passed a federal law on cryptocurrency, marking a historic milestone for the digital asset industry. Bitcoin also benefits from this positive development, currently trading above $120,340. Following the rise of BTC, Hedera (HBAR) has also risen to the sky today, with an increase of 21%.

Notable news today:

– BlackRock has submitted an amended filing for its Ethereum ETF to include staking features, potentially making it the first Ethereum ETF in America to offer staking rewards. NASDAQ has also proposed rule changes to allow staking, indicating a serious effort to launch the first spot Ethereum ETF with staking in America.

• The US House of Representatives has passed the (CLARITY Act), aimed at clarifying the regulations on digital assets and delineating the supervisory authority between the (SEC) and the (CFTC). Additionally, the GENIUS Act — the first federal legislation on cryptocurrency — has also been passed with bipartisan support, establishing national standards for the issuance of stablecoins.

The crypto market reaches historic highs

The total market capitalization of crypto has risen by 125 billion dollars in just the past 24 hours, currently reaching 3.91 trillion dollars — an all-time high. This impressive growth reflects strong confidence from investors and a widespread optimistic sentiment in the market regarding the digital asset sector.

The U.S. House of Representatives passing the CLARITY and GENIUS acts has sparked a wave of growth in the market, thanks to creating a clearer legal framework for digital assets and issuing stablecoins. With the current positive trend, the total market capitalization is likely to approach the milestone of 4 trillion dollars in the near future.

Total crypto market capitalization | Source: TradingViewHowever, if the market corrects in the coming days, the possibility of a price drop is entirely possible. In this scenario, the total market capitalization could drop to $3.9 trillion or lower, with the $3.8 trillion mark serving as an important support area to watch.

Bitcoin regains the key support level

Currently, the price of Bitcoin is at $120,466, aiming to maintain the $120,000 threshold as a key support zone. This price level is strategically significant for BTC as it is heading towards establishing a new all-time high (ATH). If it can maintain stability around the $120,000 mark, Bitcoin could gain momentum to reach the new ATH, creating a strong growth impetus for the entire market.

The crypto king is only 2.04% away from its historical peak — the current ATH is $123,218. To surpass this threshold, BTC needs to convert the resistance level of $120,000 into support. If this is successful, it could pave the way for the next bull run, bringing Bitcoin closer to new price milestones and attracting more capital from investors.

BTC Price Chart | Source: TradingViewMeanwhile, the RSI is currently in the overbought zone, raising concerns about a potential reversal. History shows that when an asset falls into this zone, the likelihood of a correction is quite high. If Bitcoin experiences a sell-off in the short term, the price could drop to $115,000, undermining the current bullish outlook.

This scenario could disrupt the journey towards a new ATH for BTC.

HBAR reaches highest peak in 5 months

The price of HBAR has risen 21% in the past 24 hours, currently trading at $0.285, marking the highest level in 5 months. This altcoin is heading towards the resistance zone of $0.314, as market sentiment becomes increasingly positive. This bullish momentum could continue to push HBAR further in the short term if it overcomes the resistance.

Notably, the rise of HBAR has created a golden cross signal as the 50-day EMA crosses above the 200-day EMA. This is an important technical indicator that suggests the potential for the upward trend to continue, supporting HBAR in surpassing the $0.314 mark. If the upward momentum is maintained, HBAR could record many new gains in the coming days.

HBAR Price Chart | Source: TradingViewHowever, if HBAR investors shift to a selling trend, the price may fall below the support level of 0.267 dollars. This scenario would further pull HBAR down to 0.241 dollars, invalidating the bullish trend. Investors should closely monitor these important support levels to identify reversal signals early.

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