Last week in the news

Crypto market is continuing to move in a green zone for a third week in a row, supported by the U.S. Infrastructure bill, which increases investor’s expectations regarding crypto's future wider acceptance. Bitcoin was traded up to $48K, Ether is moving above $3K.

A lot of attention during the previous week has been placed on the U.S. Infrastructure bill, considering its potential implications on the crypto industry, which was passed by the U.S. Senate. As CNBC reported, the most disagreements, which industry had with lawmakers, is over a definition of crypto broker, which is “so broad and unspecified” for interpretation. The controversy is that the Bill requires crypto brokers, as defined by the Bill, to report customer information to the IRS. However, since this definition of brokers also includes crypto miners and other stakeholders in the crypto industry which don’t have customers, it remains unclear in which manner they are going to report customer information. As many industry professionals and lawyers are currently urging for this definition to be fixed , there is a possibility for some changes in the adopted Bill to occur in the near future. On the other hand, the crypto market had a positive reaction to the adoption of the Bill, as many investors perceive it as a good move to higher adoption of the crypto coins.

Coinbase Global (COIN) share price jumped 2.1% on Tuesday after the company released better than expected revenues for the second quarter. Coinbase revenues reached $2.23 billion, higher than estimated by the market, while earnings jumped to $3.45 per share. At the same time, the company increased monthly transactions to 8.8 million, which is an increase of 44% compared to the previous quarter. Trading volume increased by 38%. It is also interesting to mention that disclosures of Q2 results of Intel, one of the biggest chip makers on the market, revealed that the company has purchased more than 3.000 shares of Coinbase.

The company Venmo, which is owned by PayPal, announced a launch of a credit card Cash Back to Crypto which allows its customers to convert cash-back funds into crypto currencies with no costs on such transactions. This service is allowed only to customers in the U.S.

After Ethereum, an important upgrade is coming for Cardano. As it has been announced by Caradano`s developers, the so-called “Alonzo '' upgrade will be released in September. Aim of this upgrade is to improve smart-contract functionalities which will be able now to also support decentralized finance platforms. On this news Cardano (ADA) jumped to levels above $2.

After luxury fashion, famous Dolce & Gabbana announced their move to non-fungible token market. As it has been reported, a “Collezione Genesi” NFT`s will be personally designed and will be a “bridge the physical with the metaphysical”.

During the previous week there has been mixed data on the U.S. economy. Figures on the U.S. producer prices surged, while U.S. core inflation is modestly slowing down to 4.3% in July y/y from previous 4.5%.  CPI remained flat compared to previous month at 5.4%. As Michigan Consumer Sentiment for August dropped by 10 points, it provides some support to current FED accommodative policy. Market is currently watching the Fed`s Central bank conference, which will be held as of the end of this month, in order to get more information over the current FED`s sentiment on the state of the economy and potential future moves.

Crypto market cap

Positive market sentiment for the crypto market continues for a third week in a row. Compared with the end of the previous week, total crypto market capitalization has increased by 10%, ending a week at levels of $1.93 trillion. All coins gained led by Bitcoin and Ether. Positive surprise for last week was Ripple with a strong push in price and market cap. Daily trading volumes remained overall flat during the previous week, ranging around $220B on a daily basis. Total inflow from the beginning of this year stands at $1.14 trillion, which is an increase of 144%.

Crypto market is continuing to move in a green zone for a third week in a row, supported by U.S. Infrastructure bill, which increases investor’s expectations regarding crypto's future wider acceptance. Market was driven by Bitcoin which gained $64B or almost 8% in market cap, followed by Ether with an increase of $19B or 5%. Positive surprise came from Ripple who managed to gain almost $21B in market cap or 67% in a single week. Cardano gained $22B or almost 50% on news that a major network upgrade is scheduled for September. Interest for Tether was also increased, where the coin surged its circulating supply for almost 2% on a weekly basis.

The table below provides most recent information regarding market cap and circulating supply for most popular crypto currencies.

Crypto futures market

During the previous week crypto futures were following crypto spot market developments, where prices for maturities up to October were increased by 11% for BTC and 12% for ETH. However, longer maturities gained much less, providing some clue on current market expectations on some slowdown in prices as of the end of this year.

Table below provides the most recent information on BTC and ETH future prices.

Bitcoin: is there strength for $50K?  

Positive development for BTC during the previous week was a break of $45K resistance line, which open a path for BTC to move to the next resistance at $50K. Bitcoin started last week around level of $43K and pushed to the upside, and highest level reached at $48K. RSI is still moving around level of 70, which is indication that overbought market is coming, and along with it, some short term price correction. On a positive side are oscillators, with MA50 beginning to converge toward MA200 from the downside. Although they are still at safe distance, this move is providing indication for some golden cross in the future.

Charts look optimistic, but there are still some risks which need to be considered. Daily trading volumes continue to be relatively low, which indicates that BTC might take some time until it clearly reaches the next resistance level. RSI is slowly reaching overbought territory, which increases probability of short term correction. Fundamental news are always a factor to consider when it comes to volatility of crypto currencies and their future short term moves.

Level of $45K is currently in focus for BTC. It can be expected that this support line will be tested in the coming days. In case that it is not broken on the downside, then BTC will certainly be back on a road to $50K. In the opposite case, the next support line stands at $40K.

Ether: short road to $3.5K?    

After successful implementation of the newest upgrade, which supported Ether`s price on the upside, during the previous week there has been modest slowdown on the upside for this coin. Ether started a week around level of $2.900 and continued its move to the upside till the level of $3.330, where it started its short reversal. For almost two weeks, RSI has been moving continuously in the overbought zone, indicating that some short term reversal can be expected soon. There is also an interesting move from oscillators where MA50 crossed MA200 first from the upside, and during the previous week it made another cross but now from the downside.

Technical analysis currently suggests that there is a probability for a support line at $3K to be tested. This would be a level to watch in the next couple of days. If this level is broken on the downside, then ETH will head to test the next short term support line at $2.850. On the opposite side, if the market sustains demand for this coin, then can be expected a move toward the next resistance line at $3.5K.

Ripple: expect the unexpected

Ripple was the absolute winner of the crypto market for the previous week. Coin managed to move the price up for more than 60% in a single week. This move was pushed by increased trading volumes, however, at this moment; there are still no available fundamentals which supported this surge. Anyway, it is certainly nice to see XRP back in the game, after the still ongoing SEC lawsuit.

During the previous week, XRP broke the resistance line at $0.9 and made a push of price all the way to the next resistance line at $1.2. Market didn’t have strength to go above this level. XRP is currently traded around level of $1.14. For the last few days RSI has been moving in an overbought zone, which provides some indication that short term reversal can be expected soon. Oscillators are currently at a safe distance, and don't provide much indication on the potential XRP move.

Based on current charts, it can be expected for XRP to continue to test $1.2 resistance. If the coin manages to break this level, then the next level to watch is $1.4. However, due to RSI, there is a probability for short term reversal, in which case XRP might shortly revert to the downside to test support line at $1.0 all the way down to long term support at $0.9.

Binance Coin: is it time for short term reversal?

During the previous week, Binance Coin was moving slowly but gradually toward the $430 resistance line. Coin started a week testing support at $350, but soon reverted back to the upside gaining additional almost $100 in price. With the latest move to $430 resistance, BNB has reached a clear overbought zone, and RSI move above 70. This provides some indication that short term reversal might soon be in store. Oscillators are still moving parallel with each other at a safe distance, not providing an indication that some major developments are coming.

The $430 is the one to be closely watched in the coming days. In case that some fundamental news pushes the crypto market on the upside, it can be expected for BNB to move above this line and next level at $520. However, higher probability currently stands on the opposite side, and BNB`s move to test support line at $350 once again.

Cardano (ADA):  can “Alonzo” push price to ATH?

Cardano had a very good week, considering that coin developers announced a major upgrade of the network called “Alonzo”, which would take place in September. After this upgrade it is expected for Cardano to be able to support the increasing market of decentralized finance (DeFi`s) platforms. This news was extremely well perceived by investors, which pushed the price of ADA all the way up to $2.2, while trading volumes are currently significantly increased compared to previous period.

Taking into account this quite important fundamental news for Cardano, it is hard to predict near future moves using simple technical analysis, considering that it is unknown how much more demand will be generated for this coin in the coming days. In this sense, we will focus only on important levels. Support line currently stands at $2.0. In case that it is broken, the next line stands at $1.85. However, in case that demand for coin pushes price higher from current levels, then it can be expected that ADA will head toward old ATH at $2.45, and maybe try to go even above.

LINK: $30 level in store?

Although LINK was following general market trends during the previous week, coin made some modest performance. Price range was between $23 up to $27. LINK has broken the resistance line at $25 but didn’t have strength to test the next resistance at $30, which increases the probability for this level to be tested in the coming period. As of Saturday, LINK reverted a bit on downside and made a move to test once again the support line at $25.

Support line at $25 will be in focus for the next few days. In case that correction moves below this level, the next level to watch would be the support line at $20. However, if $25 is not broken, then a move toward resistance at $30 would be the next target of LINK.


Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.

This Market Analysis has been published by a staff writer at XBTFX.

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