Digital Asset Insights
Digital Asset Insights #81
Investing in digital assets is less volatile with the right information. This weekly report helps you to understand the history and the likely trends of cryptocurrencies.
Bitcoin price saw a massive sell-off last week as it tried to consolidate and recover since then. Bitcoin price crashed 12% between August 18 and August 20 and set a swing low at $20,750, which is the fourth equal low formed since July 18. Although the recovery has pushed BTC to $21,500, the upside seems capped at $22,600.
Bitcoin price, on Tuesday, August 23, 2022, auctioned at $23,124 as a sideways consolidation unfolded after the free-fall decline on August 18.
Bitcoin price continued to consolidate inside another tight range with no directional bias in sight on Wednesday. This development caused many altcoins to explode, while Ethereum and Ripple continue to wait for a BTC cue. Bitcoin price continued to consolidate after the recent 12% crash that occurred between August 18 and August 20. This downswing set up multiple equal lows at $20,750.
Bitcoin price auctioned at $21,561 as a sideways range followed the 16% sell-off that occurred on Friday, August 19. Traders seeing this had a justified reason to want to participate in an early buy, but based on the lack of volume and lackluster price action, being an early bull is ill-advised.
Traders from last week’s bearish trade setup are still profitable, and the first target at $18,900 has yet to be breached. Moving the risk into profit would be highly risky as a fractal wave of Bitcoin’s prior performance could result in a liquidity hunt tagging as high as the $23,000 price level. Invalidation of the bearish trend remained at $27,000.
Bitcoin price traded sideways all week following last Friday's 16% liquidation. At most, the peer-to-peer digital currency has recovered 3% of the losses accrued.
Bitcoin price slipped below the ascending parallel channel, triggering a 10% crash to $19,513. As sellers take a break, the buyers are likely to step in and trigger a recovery rally. This development could see BTC retest the $20,750 hurdle.
While a move above this level could indicate a resurgence of buyers, it is unlikely that bulls have the necessary momentum. Therefore, investors should be cautious about the potential recovery rally for Bitcoin price.
Ethereum price crashed roughly 19% following Bitcoin’s cue between August 18 and 20. Ethereum price auctioned at $1550 on Monday, August 22. Ethereum price tried to remain bullish. Ethereum price was bent on recovering its recent 19% loss it encountered following Bitcoin’s cue. After the initial attempt failed to move past the $1,675 hurdle, ETH retraced and gave the run-up another go. As a result, it set up a higher high at $1,673 but remained far away from flipping the $1,675 hurdle into a support floor.
On Wednesday, Ethereum price auctioned at $1,671. Traders have been closely eyeing the smart contract giant as a good rebound is speculated to occur after the steep 25% decline since the $2,030 highs. Since the August 20 low at $1,523 was established, the ETH price has already rallied 10%.
Ethereum price traded at $1,606 on Thursday, August 25. Ethereum dominated the cryptocurrency sphere in terms of performance, providing several profitable opportunities to latch on to throughout the weeks.
Ethereum price loses steam going into the weekend. Ethereum price filled the imbalance, resting at $1,478 as it attempted a recovery. ETH’s bounce depends on Bitcoin and what it does next. If Bitcoin price rallies, Ethereum price could see a quick bounce to $1,571, followed by a retest of $1,650. If the momentum is strong, then $1,730 level is where Ethereum price could form a local top.
On the other hand, if Ethereum price fails to stabilize, sellers could send ETH down to collect the liquidity resting below $1,350 and retest the $1,280 support level.
Ripple price hovered around the $0.340 hurdle with no directional bias in mind on Monday, August 22. The digital remittance token was submerged below a descending trend channel after falling penny-from-Eiffel style on August 19. XRP price auctioned at $0.330 on Tuesday, August 23.
Ripple price broke free of its $0.381 and $0.360 tight range as it crashed 13% on Wednesday. This move pushed XRP price to retest the $0.340 support level, where it consolidated again.
On Thursday, August 25, Ripple’s XRP price auctioned at $0.34. The bears appeared to have full control over the digital remittance token as the sideways consolidation continues below the 8- and 21-day simple moving averages.
XRP price has been the underperforming digital asset for most of the summer. The digital remittance token, which saw a 30% increase in price throughout the summer, has already lost 50% of the rallies accrued profit. Now the XRP price hovers above an ascending trend line, providing support throughout most of the summer. XRP price traded at $0.34 on Friday.
During the weekend, Ripple price filled the imbalance to the topside at $0.371 and collected the liquidity resting below equal lows formed at $0.326. While this efficient move is now complete, investors need to wait for a recovery above $0.326, which will confirm an incoming bounce.
The targets of this bullish move are $0.340 and $0.360, but things could escalate, allowing Ripple price to retest $0.381 if the momentum is right. While things are looking ideal for a Ripple price recovery, a failure from bulls to step up will lead to a steep correction to $0.309 and $0.286 in search for liquidity hunts.
Cardano price first formed this fractal as the June 19 swing lows collected the liquidity resting below the previously formed swing low at $0.435. This move was followed by a quick recovery above $0.435, which confirmed the start of a recovery rally. As a result, Cardano price rallied 24% last week. Similar setups were noticed three more times, with the most recent one occurring between August 20 to 23 as ADA crashed by roughly 20%.
Cardano price has been facing a brutal bearish dominance throughout the summer. The self-proclaimed Ethereum killer has been an underperformer for several weeks. While other smart contract tokens cryptocurrencies like Ethereum and Binance coin saw well over 50% returns this summer, the ADA price only managed to recover 30% of its losses since the early July sell-off.
On Wednesday, Cardano price auctioned at $0.465, 25% lower than where it traded just a few days prior at $0.59. On the daily chart on Saturday, the price was located in the middle of the channel between the support at $0.4257 and the resistance at $0.4741.
Currently, one should not expect any sharp moves as neither side has accumulated enough strength for a further move. On the weekly time frame, the situation is a bit different. Cardano (ADA) has made a false breakout of the $0.4347 level. While the price is above it, bulls have a chance for a local bounce back. If that happens, one can expect a rise to $0.50 in the mid-term. ADA traded at $0.4418 on Sunday, August 28.
Solana price traded at $35.44, 85% lower than its all-time high at $258 on Monday. During August, the centralized smart contract token witnessed a 26% increase before the bears came back into the market to reject the price.
Still, two fractals of Solana’s previous market behavior have been utilized since July to gauge which direction the SOL price intends to go in the short term. The bearish fractal shows more dominance, hinting that a mudslide could occur for $30 if the fractal continues to display replicated behavior.
Solana price traded higher, with over 3% of gains built up during the European trading session. By doing so, SOL price broke out of the bearish triangle that got identified Wednesday and looked set to break below the monthly pivot at $34. Instead, bears were getting squeezed a bit towards $40, but the time horizon is very small.
Solana price dropped 27% from its August 14 swing high at $48.37 and stabilized around $35 on Thursday. On August 13, the Solana price rallied towards a high at $46.50, which had many in the crypto space believing in the start of a new bull run.
On Saturday, August 27, Solana traded at $31.50, 33% lower than where prices stood just a week prior. Although the decline is already quite devastating, if the fractal continues to pan out, the SOL price could fall as low as $13. Such a decline would result in an additional 60% decrease from the current market value.
Therefore Solana price is considered a high-risk digital currency until more chart evidence can argue otherwise. Invalidation of the downtrend scenario is a breach and closing candle above $54. If the bulls can hurdle this level, they could kick off the anticipated Solana bull that everyone is hoping for with bullish targets well above $200. Such a move would result in up to a 3x increase from today's market value.
Over the past seven days, the price of Tether has increased by 0.01%. Over the past 24 hours, the price has decreased by 0.00%. The price increased by 0.00% in the last hour. USDT currently trades at $0.999985. The all-time high of $1.22 is 18.03 percent below the current price of Tether.
BINANCE USD (BUSD)
There has been a decline of 0.05% in Binance USD price in the past seven days. There was a decrease of 0.05% in the price over the past 24 hours. 0.05% has been deducted from the price just in the last hour. There is a price of $1.0005 per BUSD at the moment. There is a 9.86% drop from Binance USD's all-time high of $1.11 to the current level.
USD COIN (USDC)
USD Coin's price has fallen by 0.01% in the last seven days. In the past 24 hours, the price has increased by 0.00%. The price has risen by 0.00% just in the past hour. USDC is currently priced at $1.00 per unit. $1.00 represents a new all-time high.
In the past 7 days, Dogecoin's price has fallen by 6.33%. In the last 24 hours, the price declined by 3.31%. The price increased by 0.29% in the past hour. A DOGE can be purchased for $0.06281 at the moment. A total of 91.69% of Dogecoin is below its all-time high of $0.74.