Bitrue Weekly Market Report: Bitcoin Regains $25,000 Despite Bearish Market Tone
Report Period: August 8th — 15th
Table of Contents
- Crypto Market Overview (August 8th — August 14th)
- BTC and ETH Quick Chart Analysis
- News Highlights This Past Week
- Upcoming Events for The Week
Crypto Market Overview
Bitcoin, the leading cryptocurrency by market cap, topped $25,000 on Sunday for the first time since June. Despite the current bearish tone in the market, $BTC keeps on scoring gains. With a dominance of roughly 40% of the whole crypto market, Bitcoin’s gain brings the market valuation up past $1.15 trillion. At the time of writing the price of $BTC retraced slightly to $24,000, confirming $25,000 as a strong resistance level.
Mirroring Bitcoin, Ethereum also hit the $2,000 level last week which is another important key level for ETH. A successful launch of the Goerli network, which is the final testnet for the upcoming Ethereum Merge upgrade, was a very strong catalyst that caused this upward movement. With the current market situation, some analysts are still skeptical that this event will take place on September 19th. But looking at the recent price movements the Ethereum community still has a bullish sentiment in the long run.
With most projects closing green in the second week of August, it seems that investor confidence is starting to build up. This is also supported by the increase in overall trading volume and price pump in top meme coins such as $SHIB and $DOGE that will be mentioned in the next section.
BTC and ETH Quick Chart Analysis
BTC 4H Chart
Bitcoin is still moving in a bullish price channel since mid-June. With price movements persistently showing higher highs and higher lows, this chart is looking healthy for investors to start accumulating. $BTC’s 100 EMA and 200 EMA are the dynamic support levels that firmly hold the bullish price momentum. A warning sign that traders should take a look at is the bearish divergence pattern that formed since the beginning of the month, with a recent price movement that broke below the latest trend line indicating an imminent change to slight bearish tone in the market. While bigger downward moves are still possible with a bearish macroeconomic outlook, this could be just another healthy retracement after hitting a major price level at $25,000.
ETH 4H Chart
Similar to Bitcoin, Ethereum is also closing the week on a high note, climbing above the $2,000 mark. Although prices subsequently reversed, this still can be considered as a very optimistic market move. Strong fundamentals with another successful testnet to welcome September’s Merge could be one of the causes of this parabolic move. Technically, $ETH’s current price level is a little bit too extended to the upside, and a possible downward move could potentially happen in the next few days, this is supported by a forming bearish divergence. The area around the $1,800 level, with 100 EMA lines, can act as the nearest support area. It’s worth noting that any fundamental news about Ethereum 2.0 is very sensitive to its price movement. So, investors might want to take a look at it to avoid a volatile market.
News Highlight This Week
Memecoin Trading Volume Spikes 151%
Shiba Inu $SHIB and Dogecoin $DOGE posted very impressive daily gains at around 28% and 9% respectively. During the weekend the market saw new money poured into the meme economy that reportedly increased the market value. According to data from CoinMarketCap the top meme cryptocurrencies are currently valued at $19.54 billion and the trading value of this class of assets has increased significantly by up to 151%.
Both SHIB and DOGE have had good announcements in the past few weeks that polish the fundamentals of both projects. With the launch of Shiba Eternity on August 2nd, the much-awaited collectible card game will be a good addition to the list of SHIBarium ecosystems. The 292 million SHIB burned during the last 24 hours also acted as another catalyst for the recent rally. During the same week, Dogecoin Foundation Developer, Michi Lumin, unveiled the initial release of LibDogecoin, a C library of Dogecoin building blocks by the foundation that enables lightweight direct integration of Dogecoin into a variety of platforms without the need for a developer, thus no in-depth blockchain knowledge is needed.
Currently Shiba Inu and Dogecoin are ranked 12th and 10th by their market capitalization, but with the recovery of the whole crypto market it is possible that the both tokens will post impressive gains in the following weeks as more investors join the train.
BlackRock Offers Cryptocurrency Investing for Institutional Investors
Despite a lot of uncertainties in the current market of digital assets, BlackRock has launched a private trust offering institutional clients in the US a direct exposure to cryptocurrency. This news came out after the freshly established partnership between BlackRock and Coinbase. The announcement by BlackRock CEO Larry Fink was also followed by his statement about the growing interest of investors in digital currencies, including stablecoin and “the underlying technologies” which are known as blockchain.
With the announcement of Large Fund Managers such as BlackRock that will expose their assets into Bitcoin this will bring a flourish to the BTC valuation in the future. With the assumption of $10 trillion Assets Under Management, confirmed by BlackRock’s latest report, many analysts believe that one percent exposure of those assets to Bitcoin will bring the BTC valuation to around $100,000. This is 4x gain from the $25,000 price of Bitcoin at the time of writing. Considering volatility and its utility, the exposure might increase to a max of 6.55% which will bump BTC’s valuation to $500,000, a 20x potential gain from its current price.
Although some people believe that the Crypto market might have another leg down before the next bull run, we can see that institutional investors such as fund managers and hedge funds, started to adopt crypto currency as their asset holding. This will expose crypto, especially Bitcoin to a very large pool of funding that will enrich its valuation in the future.
Upcoming Events for This Week
- World Blockchain Summit — Canada 18th — 19th August 2022 : A thought-leadership-driven initiative that brings together the most important stakeholders from the blockchain and cryptocurrency ecosystems to discuss and deliberate the future of the industry. The summit features inspirational keynotes, pitch competition, panel discussion, investor meet-ups, project showcases, and networking opportunities.
- Mina zkApp Developers Meetup — Mexico City 18th August 2022 : Event that hosts the Mina community in Mexico City which will showcase Mina’s skApps technology development, the tools that are offered, and future programs such as hackathons and grants that are coming up later this year.
- ETH Mexico 19th — 21th August 2022 : Important event for the Ethereum community in Latin America. The event will feature a hackathon, workshop, and also keynote speakers such as Vitalik Buterin himself and other important guest speakers from the development team.