On Friday, crypto tokens traded higher ahead of the much-anticipated speech by Jerome Powell, Federal Reserve Chair. Investors remained vigilant as comments by the Federal Reserve Chairman could indicate the Federal Reserve’s next rate increase. Other than Solana, Polkadot and other major cryptocurrency cryptocurrencies, they traded higher Friday. Shiba Inu surged by 4%, while Cardano and BNB gained cents each in the first hour. The global cryptocurrency market cap was slightly higher at $1.04 trillion, but less than 1% in the last 24hrs. The total trading volume dropped by more than 2 percent to $63.98 billion.
Bitcoin (BTC), and other major cryptocurrencies, are trading sideways. This is because traders are avoiding big bets in advance of the Federal Reserve’s Jackson Hole Economic Symposium on August 25th. Investors will likely gain clarity about the Fed’s position in the coming days by volatility. Although short-term price movements remain uncertain, the on-chain data suggests Bitcoin could be undervalued. This could mean that it could provide strong returns if historical trends repeat. JJ, Jarvis Labs’ resident analyst, says that Bitcoin’s market cap is now at its lowest level since 2015. The indicator reached a low in 2015 and 2019. This was Bitcoin’s lowest point in 2015. In 2022, this indicator dropped to extremely low levels. Overnight, BTC/USD soared to $21,700. This level coincided with the realised price and was considered the key reversal area to signify a continuation in the uptrend. However, Bitcoin fell further at the time this article was written, reaching its support mark.
As Ethereum’s current Proof-of-Work mining consensus is transformed to a Proof-of-Stake model, the blockchain will face one of its largest upgrades since inception. After the successful integration the Goerli Testnet, which was the last merge of all testnets prior to the actual transition, the merge date has been set for September 15. After the announcement of the merger date, Ether (ETH), Ethereum’s native token, experienced a bull market in July. It reached a 6-month high above $2000, but failed to hold the critical resistance. As the merger approaches, the optimistic optimism about the token’s price and market sentiment seems to be decreasing. A significant drop in ETH whale holdings has occurred. The gap between top 10 exchange addresses and no-exchange addresses is very close, according to data. Major whale addresses have sent a large amount of ETH to the exchanges over the last three months. Exchange-based addresses are up 78%, but addresses without an exchange are down 11%.
Assets are trading lower on the macro front ahead of Fed’s annual Jackson Hole symposium, and associated Jerome Powell Hair remarks, August 26th. Keep in mind the price index and the difference in parity between US dollar and euro. Since June, the U.S. Consumer Price Index (CPI), inflation has slowed. Interest remained high despite key interest rate increases in September. The US Dollar Index (DXY), after rising the previous day, reversed its gains and reached a new local record.
Technical Outlook
BITCOIN:
Chart for Bitcoin (BTC).
After hitting a recent high of $25,211, BITCOIN saw a correction, and prices plummeted almost 17% to $20,761. The asset traded in a narrow range of $20,800 to $21,800 for the past six trading days after this move. BTC trades in an ‘Ascending Channel” pattern on a daily chart. Prices are looking for support at $20,000. (Horizontal Trendline & Lower Up Trendline of the channel). If the support is held and maintained, then the bulls can resume their up-move. A break below it can cause further decline. BTC must break above the channel to witness a rally.
ETH:
Chart for Ethereum (ETH).
ETH gained upto $2,000.1 from $881 at its bottom. However, it faced stiff resistance at $2,000 psychological level. The ETH price corrected by almost 25% to $1,523.6 weekly low. The asset created a “Spinning Top” candle at $1,500 support and is showing signs that it is recovering but in low volumes. ETH is currently at $1,750 (20-day Moving Average & Horizontal Trendline). If the resistance is broken, then prices can rise to the $2k mark.
MATIC:
Polygon (Matic), Chart
Matic created a ‘Cup and Handle’ pattern with a neckline of $0.63 and rallied to $1.05. The asset was then faced with multiple resistances at $1 (Horizontal Trendline and 200 Day Moving Average), and saw a correction of nearly 28%, dropping to $0.7582. Matic consolidates in a range of $0.765 to $0.835. Matic has strong support at $0.75 to $0.625, while $1 will be a strong resistance.
Weekly Snapshot
USD ($)18 Aug 2225 Aug 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$23,212$21,600-6.94%$25,135$23,177$21,783$20,857ETH$1,847$1,657-10.30%$2,007$1,827$1,697$1,534MATIC$0.86$0.82-4.77%$1.03$0.86$0.84$0.76Cryptocurrency1w – % Vol. Change (Global)BitCoin (BTC)14.12%Ethereum (ETH)8.44%Polygon (MATIC)-14.74%Resistance 2$28,500$2,000$1.05$0.60Resistance 1$24,500$1,750$0.86$0.45USDBTCETHMaticBATSupport 1$20,500$1,500$0.75$0.33Support 2$17,500$1,275$0.63$0.25
Market Updates
Bitcoin Depot, one of the most prominent crypto ATM providers in North America plans to list its stock stock on Nasdaq within the first quarter 2023 by merging with a special purpose acquisition company (SPAC). This is after five of its premises were searched by anti-money laundering agents for alleged violations to forex laws.
Disclaimer: This report should not be regarded as investment advice. It does not consider the financial situation or investment goals of investors. When deciding whether an investment is right for them, all investors should take into account these factors and consult with a professional advisor. This report was prepared by the Company using information that it has access to, as well as information from public sources that have not been independently verified. The Company makes no representations or warranties, either express or implied, regarding the accuracy, reliability, correctness or completeness of the information, opinions or conclusions contained herein. This report is preliminary. The Company does not assume any obligation to revise or update the reports in response to new events or circumstances after the date of the report was made. Trading & Investments in cryptos viz. Bitcoin Cash, Ethereum, and other cryptos are highly speculative investments that are subject to market risk. The Author’s analysis should be used only as information and should not be considered investment advice.
26th-Aug-2022 ZebPay.
