As a seasoned trader with decades of experience under my belt, I find myself intrigued by the dance between MKR and DOT this week. On one hand, MKR has been tangoing with sellers around the $2,000 mark, struggling to break free. Yet, the resilience shown by buyers on Monday suggests that there’s still hope for a bullish comeback.
Regardless of recent setbacks, Bitcoin (BTC) has regained its position above $60,000, currently trading at $61,100 – an increase of over 4% in the last 24 hours. Initially showing little activity, BTC and Ethereum (ETH) picked up momentum and recorded substantial growth during the day on Monday.
On Monday, other digital currencies like Toncoin (TON) experienced notable growth, boosted by the announcement of a collaboration between HashKey and gaming platform Catizen. Additionally, DYDX saw an increase as investors continue to anticipate positive volume trends throughout the week.
Concerningly, Bitcoin traders are facing potential difficulties due to a resurgence in the value of the Japanese yen. Earlier this month, the yen’s increase caused turmoil in financial markets, leading to carry trades being unwound and significantly affecting risky assets such as cryptocurrencies.
Bitcoin (BTC) Still Range Bound
For some time now, Bitcoin (BTC) has been stuck within a specific price range. Despite this, long-term investors remain optimistic about the asset’s future prospects, as indicated by Glassnode data showing that approximately 74% of BTC has not been moved in the past six months or more. Yet, there is uncertainty among investors regarding which direction Bitcoin will break from its current range. According to Aurelie Barthere, a principal research analyst at Nansen, the ongoing crypto bull market could persist if the Federal Reserve decides on a rate cut and economic growth remains strong. However, should economic growth falter, the upward momentum for risk assets like cryptocurrencies may be limited.
On the other hand, Rekt Capital, another well-known analyst, presents an alternate perspective. He suggests that Bitcoin (BTC) could be on the verge of a breakout within a month if it adheres to its typical pattern: initiating a parabolic phase approximately 160 days after the halving event. This prediction was made in a post on X.
“Following the halving approximately 125 days ago, Bitcoin historically enters a parabolic phase around the 160-day mark. If this pattern holds true, we might be looking at Bitcoin potentially breaking out within a month, which would be around late September.”
As per Jamie Coutts, who serves as the chief cryptocurrency analyst at Real Vision, the overall economic forecast appears promising. Furthermore, Bitcoin might experience a significant surge due to the escalating global M2 money supply.
For approximately ten years, Bitcoin has demonstrated a pattern where it experiences multiple dips over several months prior to reaching its lowest point globally in terms of M2 money supply. Subsequently, it surges significantly, outpacing the increase in liquidity, and subsequently undergoes a mid-cycle correction.
Japanese Yen Strengthening Again
1. Option: The Japanese yen is growing stronger compared to the U.S. dollar, surpassing other significant fiat currencies in a similar fashion as it did in early August. This performance comes amidst a period where global stock and cryptocurrency markets have experienced substantial losses, with major cryptos dropping considerably since then. The yen has increased by nearly 2.5% against the U.S. dollar and over 1% versus the Australian dollar. Additionally, it demonstrates robustness against the British pound and the Euro.
The behavior of the yen’s value currently resembles its pattern from late July and early August, causing a reversal in carry trades that were funded using less expensive yen-based loans. This event had a notable effect on the crypto markets, causing Bitcoin (BTC) to plummet from approximately $70,000 to below $50,000 before rebounding.
“The strong movement in the Yen is leading to a self-reinforcing cycle where stop losses are tripped and excessive long positions are liquidated. This turbulence is affecting the placement of risky assets worldwide.”
Based on the statement by the head of Goldman Sachs’ cryptocurrency trading desk, Andrei Kazantsev, it appears that Bitcoin and Ethereum traders were impacted by a change in the Japanese Yen market, known as the yen unwind. Therefore, the current behavior of the yen is something that crypto traders should be mindful of.
“We think that a significant 20% decrease in USD/JPY could significantly influence expectations about its future trend, possibly encouraging traders to be more ready to purchase yen when it’s weak. This shift in behavior might incline the market towards a stronger yen forecast.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) struggled to surpass the $60,000 mark and its 20-day Simple Moving Average since early August, instead trading below these key indicators. After dropping beneath $50,000 on August 5th, BTC staged a significant comeback but failed to break above the moving averages until this week. The price sank to a weekly low of $56,170 before rebounding and closing above its crucial support level of $57,000. Purchasers stepped into the market at that point on Friday, resulting in BTC recording a 2.31% increase and reaching $58,916. However, attempts to push beyond the $60,000 mark were unsuccessful.
Over the weekend, Bitcoin’s performance was a mix of gains and losses. On Saturday, it climbed 1.20% to reach $59,623. However, on Sunday, with the 20-day Simple Moving Average (SMA) in play, sellers managed to regain control after buyers couldn’t maintain their momentum, causing Bitcoin to drop approximately 2% to close at $58,491. The new week started off well for Bitcoin, rising 1.73% on Monday and ending the day at $59,501, just under the 20-day SMA. With its support holding firm, the current session has seen Bitcoin break past the 20-day SMA and the $60,000 price level, currently trading around the $61,000 mark as buyers attempt to push it higher towards the resistance at $62,000.
Where does Bitcoin head next? At present, it’s challenging the resistance at around $62,000. If it manages to surpass this point, its likely destination would be the 200-day Simple Moving Average (SMA). Breaking above the 200-day SMA might signal a possible rise towards $70,000. On the flip side, if buyers lose control and Bitcoin falls below $60,000 again, it may slide down to the $58,000 support zone. This would suggest that sellers have dominance over the $60,000 level, potentially causing Bitcoin to trade within a range of $58,000 and $60,000.
Ethereum (ETH) Price Analysis
As a seasoned cryptocurrency investor with over a decade of experience in this rapidly evolving market, I have learned to navigate its ups and downs with a keen eye for opportunities. This week, Ethereum (ETH) has caught my attention once again as it continues to show resilience despite facing resistance at the $2,700 mark.
On Saturday, ETH surpassed $2,600 following a 0.80% rise, which positioned it at $2,614. Attempts were made by buyers to move beyond $2,700 on Sunday, as depicted in the price chart. Yet, with the 20-day Simple Moving Average (SMA) emerging, sellers might regain control, potentially driving ETH back down to $2,612. The week started off positively for ETH, recovering from a low of $2,566 during the day. Buyers could counteract sellers and boost ETH by 1.01%, reaching $2,639. Currently, in this session, ETH is up by 1.34% as buyers strive to surpass the 20-day SMA and the $2,700 price level. However, sellers are aggressively defending these positions.
As a researcher studying Ethereum’s market dynamics, I find that for ETH to break free from its current confined price movement, it needs to surpass the $2,700 mark. If this happens, ETH might further push past the $2,800 threshold. However, I anticipate the $2,850 resistance level could draw sellers, potentially leading to a reversal if they regain control. In such a case, Ethereum could slide back down towards the $2,500 mark.
Solana (SOL) Price Analysis
The persistent recovery of Solana (SOL) is ongoing as it seeks to regain the $150 mark that was dropped on August 11. Following a week where it mainly dipped, SOL touched an intraday low of $136.26. However, due to its robust support at lower points, SOL bounced back on Saturday as investors stepped in, causing SOL to rise by 2.04% to $141.98. Investors made a significant push towards the $150 price point on Sunday, as shown in the price chart, reaching a peak of $147 before sellers intervened. Despite the selling activity, SOL still saw an increase of 0.37% and concluded the weekend positively.
On Monday, Solana (SOL) persisted in its ascending trend, climbing by 1.35% to reach $144. At present, the price increase nearly reaches 2%. As buyers attempt to breach the resistance at $150, a successful push above the moving averages could potentially propel SOL towards recovering its previous prices of around $170 and $180, even paving the way for a possible surge to $200. Conversely, if sellers regain control, they may force SOL back below the 20-day Simple Moving Average (SMA), causing it to dip down to an anticipated support level of $140.
Bitcoin Cash (BCH) Price Analysis
Bitcoin Cash (BCH) has been stuck in a tight price range since mid-August, neither buyers nor sellers seeming to gain control of its movement. This is evident in the chart where small candlesticks prevail, suggesting both parties are uncertain about their next move. The cryptocurrency trades below its moving averages, hinting at downward pressure, and has failed to break above $350 due to the 20-day Simple Moving Average serving as a significant barrier.
On Friday, BCH began its weekend positively by rising 1.23%, despite experiencing significant fluctuations. Buyers further boosted BCH on Saturday, but with demand decreasing, it only climbed 0.90% to $341. Sellers reemerged on Sunday, causing a 2% drop in BCH to $333, due to the approaching 20-day Simple Moving Average (SMA). However, buyers might regain control on Monday, pushing BCH up to $338 with a gain of 1.46%. As of now, BCH is trying to rise again, nearly 2%, aiming to surpass the 20-day SMA.
Bitcoin Cash (BCH) is holding steady above $320 and has a solid foundation at the $300 mark. Yet, buyers have failed to push beyond the 20-day and 50-day Simple Moving Averages (SMAs) as of now. The 20-day SMA currently serves as a barrier for further growth. If BCH manages to breach this hurdle, it could potentially surge above the 20-day SMA and challenge the resistance at $360. However, if the market mood turns unfavorable, BCH might slide back towards $320. A fall below this point could lead to a drop down to $300.
Maker (MKR) Price Analysis
Over the past day, Maker (MKR) has seen a nearly 2% rise, but it’s been battling to surpass the $2,000 mark. Last week, MKR experienced a substantial jump that took its price to $2,138. However, this uptrend was swiftly followed by a decline, causing MKR to drop to $1,961 by Thursday. Buyers tried to regain control on Friday but managed to increase the price by just 0.76% to $1,976. As sellers held the $2,000 line firm, MKR showed bearish signs over the weekend, falling by 1.16% on Saturday and 0.70% on Sunday, ending the weekend at $1,939.
On Monday, traders tried to force MKR‘s price down towards $1,900, but purchasers managed to regain control. Nevertheless, MKR only saw a minimal increase of 0.90% and closed at $1,964. In the current trading session, the price is slightly rising as both buyers and sellers vie for control. For any significant price movement, either party must make the first move, which neither appears keen to do. For bullish momentum to continue, purchasers need to push MKR above its 20-day moving average. Conversely, sellers aim to keep MKR below $2,000 and potentially drop the price back to $1,900 or the $1,800 support level.
Polkadot (DOT) Price Analysis
Over the past few days, Polkadot (DOT) has shown a steady climb, fueling optimism among investors that it might eventually surpass the challenging $5 price point and initiate a prolonged surge towards $6. Last week, DOT saw a downward trend almost throughout and dipped to an intraday low of $4.22 on Thursday, causing concern among analysts that it could fall below $4 again. However, on Friday, DOT managed to halt its descent and record a slight growth, reaching $4.29. The upward trend continued on Saturday as DOT increased by nearly 2%, rising to $4.37.
On Sunday, as bulls gained traction, investors strove to push DOT beyond $4.50. At one point, DOT peaked at $4.53 in the day’s trading, according to the price graph. Yet, sellers swiftly countered, suggesting robust selling activity at higher prices. Even with sellers forcing a minor decline in DOT, it still showed a slight uptick, hinting at mounting buyer interest. True to form, buyers held sway on Monday as DOT climbed more than 2% to $4.48, just shy of the $4.50 resistance point. Today’s session has seen DOT breach the $4.50 level, with the current price standing at $4.54. Sellers are currently exerting efforts to protect these levels, with the 20-day Simple Moving Average drawing significant selling activity.
Should DOT manage to break through those resistance points, it suggests that buyers are re-entering the market. Under such circumstances, DOT might trend upwards towards $5. Yet, it’s important to note that sellers may attempt to push DOT back down below $4.50 by establishing new resistance levels.
Dogwifhat (WIF) Price Analysis
In a positive development this week, Dogwifhat (WIF) appears to be regaining its momentum after experiencing a period of price stagnation. The cryptocurrency has been generally bearish since August 8 and spent most of the previous week in negative territory. By Friday, WIF’s price fell below $1.50 due to a significant drop of nearly 6%, losing a key support level that brought it down to $1.39. However, on Saturday, lower-level demand enabled buyers to temporarily boost the price, resulting in a 1.92% increase, bringing WIF up to $1.42. Unfortunately, WIF resumed its downtrend over the weekend and closed at $1.39, losing almost 2%.
As a researcher, I’m noting the bullish trend in WIF today. It started the week positively, recording a 3.24% increase to close at $1.43 on Monday, marking a return of $0.10. Currently, the session shows an uptrend with WIF trading over 10% higher, hovering just under the $1.60 mark. The 20-day Simple Moving Average (SMA) is currently serving as a dynamic resistance level. If WIF manages to surpass this barrier, we might witness a potential move towards the $2 price point. However, it’s crucial for WIF to first breach the 50-day SMA before that can happen.
Read More
Sorry. No data so far.
2024-08-20 15:15