Bitcoin, Ether, Major Altcoins – Weekly Market Update August 9, 2021
The total crypto market cap added $242 billion to its value for the last seven days and now stands at $1,849 billion. The top 10 coins were all in green for the same time period with Uniswap (UNI) and Dogecoin (DOGE) leading the pack with 27.8 and 25.9 percent of price increase respectively. Bitcoin (BTC) is currently trading at $45,630 while ether (ETH) is at $3,125.
Bitcoin ended the month of July with a solid 17.7 percent of price increase on a thirty-day basis and 41 percent in total since the $29,250 low.
On Sunday, August 1, it closed the weekly candle above both the 21-period EMA and the previous high thus making a new higher high at $39,800. On the other hand, it found itself still in a resistance area and near the right shoulder of the big Head and Shoulders pattern on a weekly timeframe. This figure was previously invalidated back in early July when the leading cryptocurrency made a fakeout breaking down to $29,250 – an event that triggered the latest uptrend.
On Monday, the BTC/USDT pair registered its third consecutive day in red after peaking at $42,658 on August 1. It ended the session at $39,159 with a 1.7 percent loss.
The sell-off continued on Tuesday with a fresh 2.5 percent drop down to $38,145. Buyers were still hoping for a Wyckoff accumulation kind of healthy pullback that would eventually result in uptrend continuation.
The mid-week session on Wednesday was indeed a good one for bulls. BTC formed a bullish engulfing candle up to $39,716.
On Thursday, August 5 the engulfing candle was confirmed by a second one. It is worth mentioning though, that bears were able to push the price of BTC down to $37,250 in the early hour of trading or more than 6 percent before buyers stepped in.
On Friday, the biggest cryptocurrency continued to surge and extended its gains up to $42,860 thus confirming the breakout of the range high.
The weekend of August 7-8 started with another bullish session on Saturday, BTC peaked at the 200-day EMA on daily, hitting $44,750 for the first time since May 17.
Then on Sunday, we witnessed a short pullback on the ongoing infrastructure bill discussions in the US Senate, which is expected to include a controversial crypto industry tax change. Bitcoin dropped down to $43,838 on bearish divergence on the daily timeframe after hitting a downtrend resistance on weekly.
What we are seeing midday on Monday is a solid reversal to the upside. BTC is trading at $45,800.
The Ethereum Project token ETH formed 13 consecutive green candles on the daily chart as of August 2. This incredible run was attributed to the upcoming London fork, also know as EIP-1559, which is scheduled for August 5 and is expected to bring transaction fees improvement and introduce a somewhat deflationary mechanism to its native token ETH.
The coin closed the seventh month of the year with a 10 percent increase after jumping up from the extremely stable demand zone near $1,700 two weeks earlier.
On Sunday, August 1, the ETH/USDT pair also managed to ensure that the weekly candle closes above the previous high on that timeframe, also surpassing the 21-period EMA.
The Monday session brought an extension of the rally up to $2,612, but on the second day of the week, we finally saw a pullback. The ether moved down to $2,507 in a 3,7 percent correction.
The mid-week session, however, was again all buyers as ETH climbed 8 percent up and hit the resistance zone near $2,730. This zone is also where the W-pattern (bullish reversal formation) forms its breakout point. A major Fibonacci retracement level is also situated nearby.
On Thursday, August 5 – the day of the long-awaited London fork, the altcoin almost fully retracted to its previous daily open, but buyers quickly absorbed the selling orders which lead to another green candle to $2,828.
Then on Friday, ETH extended its gains up to $2,887, closing at the exact same level as the last high from May 26.
The weekend trading started with a solid continuation of the uptrend on Saturday. The ether rallied 9.4 percent to hit $3,160.
On Sunday, August 8, bears finally stepped in and pushed the price 5 percent down to $3,013.
The correction was short-lived and on Monday, ETH started to move in the upward direction once again. It is currently trading at $3,130.
- Uniswap (UNI)
Uni re-entered the Top 10 after successfully drawing a third consecutive week in green, which corresponded to a 62 percent of price increase for the period.
The UNI/USDT pair broke above the important 21-period EMA on that timeframe and is now trading in the major support/resistance $26-$29 area. For bulls, it will be of critical importance to ensure a break above that zone while bears will hope for a rejection around $29, which was the last visited high on the daily chart.
Down, we see 23.5 as the next stable horizontal support around the neckline of the W-pattern.
Altcoin of the Week
Our Altcoin of the week is Elrond (EGLD). The project is described by its founders as a “new Internet economy” that provides developers and end-users with a scalable, fast, and easy-to-use blockchain solution. Formerly now as eGold, the EGLD token rallied 42 percent in the last seven days to reach a 2.5 month high at $128 on Sunday afternoon. The token is 92 percent up from its July 20, bottom.
The most probable reason for the recent surge in price is the upside momentum experienced by the entire cryptocurrency market and the break out of the diagonal downtrend line on the daily chart in particular.
The Elrond coin climbed up to #53 on CoinGecko’s Top 100 list with a total market cap of approximately $2,429 billion.
As of the time of writing, the EGLD/USDT pair is trading at $130.