On Thursday, the crypto market maintained gains as Bitcoin crossed the $23,000 mark. Solana’s attacks on the crypto market, which took away the wealth of 8,000 wallets, did not affect the market. Markets digested Nancy Pelosi, the US House Speaker,’s visit to Taiwan in August 2022. This caused many investors to avoid risky assets due to potential US-China tensions. All other major crypto tokens, with the exception of TRX and BNB, are mostly trading in green. Other tokens rose slightly as well. The global cryptocurrency market cap was higher at $1.06 trillion. It has been marginally lower in the past 24 hours. The total trading volume dropped more than six percent, to $62.59 billion.
Read about: Solana Under Attack.
Although bullish BTC prices failed to lift the market during the week, buyer interest offers hope. Bitcoin (BTC), which was trading at higher levels, returned to base on August 4th. The market battled for the 200-week moving mean (MA). While the Wall Street market opened saw a slight shift in sentiment, Bitcoin (BTC) returned to base on Aug 4th. Higher levels gave way to a battle around the 200-week moving average (MA). With the announcement that BlackRock, an investment giant, had partnered up with Coinbase to provide crypto trading for clients, the atmosphere did not change. Instead, the familiar status-quo of the 200-week MA at just over $22,800 was replaced by another chapter in which bulls and bears continue to fight for control. Material Indicators, an on-chain analytics resource, found that whales that were active on Binance’s largest global exchange were more likely to take a risk that day. BTC bulls must push the price to $24,000 by Aug 5th, as the options expire today, to secure a $90million profit. To lock in their gains of $75 million, bears would prefer a price drop below $22,000.
The Ether (ETH), price has risen 60% since May 3rd. It outperforms the Bitcoin (BTC), which was up 32%. There are signs that the $1,600 support currently in place is weakening as smart contract deposit metrics and network usage have weakened. Margin traders are also putting increasing pressure on ETH derivatives. Positive price action was driven mainly by increasing certainty about the merger, which is Ethereum’s transition into a Proof-of-Stake consensus network. The collapse of Terra’s ecosystem in May has had a significant impact on Ethereum’s Total Value Locked (TVL). Due to its strong security features and battle-tested apps, investors moved their Decentralized Finance (DeFi) deposits over to the Ethereum network. According to data from Defi Lama, the Ethereum network currently has a 59% TVL share. This is up from 51% on May 3, according to Defi Llama. Options traders have lower risk metrics than professional traders, while players in the margin market have been liquidating their bullish positions as ETH price tries $1,600 support. Before placing further bullish bets, investors continue to monitor the effects of notional TVL deposits on grid gas prices and smart contract demand before they place any additional bullish bets.
Investors are taking less risk because the Federal Reserve raises interest rates and reverses the record $8.9 trillion deficit. The Bloomberg Commodity Index (BCOM), which measures changes in prices for crude oil, natural gases, gold, corn, and lean meats, has fallen 9% over the same time period. The US Treasury bonds and cash positions continue to be a refuge for traders. Mary Daly, the San Francisco Fed President, stated on August 2nd that the central banking’s fight against inflation “is far from over”. The impact of tighter monetary policy on inflation, global economic growth, and employment remains to be seen.
Technical Outlook
BITCOIN:
Chart for Bitcoin (BTC).
After consolidating in a range of $18,000 to $23,000, BITCOIN made a breakout on the upside on 19 July. It reached a high of $24,287. After some profit booking, the asset began trading in a “Falling Channel” pattern. BTC rallied to $24,666 after making a Dragonfly Doji candle at its key support (lower channel trendline). The asset lit a series small red candles after this move. This indicated indecision. BTC is trying take the support at its 20-Day Moving Average. If the support holds, then the bulls can resume their up-move. To witness a rally, however, the asset must break above $24,500.
ETH:
Chart for Ethereum (ETH).
After hitting $881, ETH traded in a range of $1,000 to $1275 for three weeks. Finally, the asset broke out on the upside and surged to $1784 after forming a “Higher High Higher Low” pattern. The asset now faces stiff resistance at $1,700-$1,750 (Horizontal Trendline), and is consolidating between $1.600 and $1.725. To further rally, ETH must break above $1,750 weekly close in order to give a weekly close.
BNB:
BNB Chart
After falling to $183.4, BNB showed signs of recovery and began trading in an “Ascending Channel”. The resistance level at $275 was a stronghold for the asset. Although the asset broke above the channel and resistance, it has seen low volumes and rallied to $316. BNB could face resistance at $330 (Horizontal Trendline and 200-Day Moving Average), while $300 and $275 will provide strong support.
Weekly Snapshot
USD ($)28 Jul 2204 Aug 22Previous WeekCurrent WeekCloseClose% ChangeHighLowHighLowBTC$23,844$22,630-5.09%$24,295$20,777$24,573$22,486ETH$1,725$1,608-6.80%$1,775$1,363$1,760$1,568BNB$277.29$310.7112.05%$280.13$240.11$317.54$274.82Cryptocurrency1w – % Vol. Change (Global)BitCoin (BTC)-10.20%Ethereum (ETH)-13.77%Binance coin (BNB)53.98%Resistance 2$32,500$2,000$365$0.60Resistance 1$28,500$1,750$330$0.45USDBTCETHBNBBATSupport 1$23,000$1,525$300$0.33Support 2$20,000$1,300$275$0.25
Market Updates
Binance, a cryptocurrency exchange, has appointed Yi He, its co-founder, to manage its venture capital arm Binance Labs. This comes two months after it raised $500 million for a new fund that focuses on Web3 and Blockchain investments. Bank of America discovered that blockchains and the applications they run have intrinsic value in a paper. Galoy, which is responsible for El Salvador’s open-source banking platform, has begun offering its Stablesats product. Reddit user has collected quotes from internet NFT haters as well as famous sceptics such Warren Buffet, Peter Schiff, and Dan Olson.
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, completeness or reliability of any 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 and Investments in cryptocurrencies viz. Bitcoin Cash, Ethereum, and other cryptocurrencies 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.
5th-Aug-2022 ZebPay.
