From the Bitrue blog.
Report Period: August 1st — August 7th
Table of Contents:
- Crypto Market Overview (August 1st — August 7th)
- BTC and ETH Quick Chart Analysis
- News Highlights This Past Week
- Upcoming Events for The Week
Cryptocurrencies have mostly traded sideways entering the first week of August. While capitalization has managed to stay above the $1 trillion mark, volume has been on the low side for the week. Although on-chain activity in some top chains has started to pick up with the announcement of several new projects, investor confidence seems to have not fully recovered. Alternative coins with small to medium caps have also started pumping, but this can’t be used as a reliable gauge to see if the market is on the right track to recovery.
The US dollar gained some strength to close the week as a series of stronger than expected fundamental data came out. Unemployment rate came out 3.5%, 0.1% better than analyst estimates, and also higher than expected was the Non-Farm Payroll of 528k far above 250k that most analysts estimated. Some argue that this solid data might be the reason for the Fed’s further aggressive rate hikes, others have believed that the next two months of CPI numbers will be the key indicator for the Fed’s future rate decisions.
BTC 4H Chart
The Bitcoin 4-hourly chart has been trading inside the slightly upward channel for around 8 weeks since the last drop in mid-June. Although it has not made another higher high last week, it is respecting the recent trend support marked by the purple line. The chart shows both price action and momentum are in the bullish territory, with the formed golden cross pattern and MACD momentum line that float above the zero line. With the current macroeconomic outlook, many analysts still believe that BTC might have a possible downside move, with that being said some key supports that we can take a look at are $22,600, $21,500, and solid $20,000. Those levels can act as a good gauge for investors to get out of their trade if the price goes south.
ETH 4H Chart
Ethereum is slightly more volatile compared to BTC during the past week. The chart shows that ETH surged above the $1,665 price point to close the month of July, before dipping back down to that level, and came back above it for the second time to start the month of August. Both the EMA line and MACD line also show a bullish pattern by the golden cross pattern and MACD line hovering past the zero line. While 100EMA and 200EMA have been an important dynamic support for ETH, there is a bearish divergence forming that investors need to be cautious of before considering a long trade. Price might drop to test the previous support level which is a better entry level to hop in the trade.
ADA’s Wallets hits ATH, Yet Price Still Hovering Around $0.5
Recently, the Cardano community announced that ADA wallet addresses hit a new milestone with 3.1 million addresses holding at least $1 worth of ADA from a total of 3.7 million recorded addresses. The project also announced that until last month, Cardano’s ecosystem surpassed over 1,000 projects built inside the chain. This trend is an obvious indication of people’s interest in the project despite the recent crash to a low of $0.42 around mid-June. Although investor accumulation is still mild compared to the recent bull market cycle, it has the potential to let ADA prices surge in the near future.
At the time of writing Cardano is hovering around the $0.54 level with trading volume around $655 million, an 86% increase from the previous day. A solid 4% gain for the day keeps the project steady in the top 10 biggest-cap cryptocurrency projects with 18.5 billion in market capitalization. Despite the recent delay of Cardano’s Vasil upgrade on July 28th and “Crypto Winter” as a dreadful theme for investors, Cardano development is one of the most promising projects to put on a buy list. As the market is steadily back to its natural phase, the project is expected to progress at a much more normal phase.
Matic Ready to pass $1 With Coca-Cola’s Special Digital Collectible Drops On The Chain
Polygon is once again used by big companies as one of their necessary means to expand their businesses into blockchain technologies, such as NFTs, Metaverse, and Web3. After being chosen by Disney’s 2022 Accelerator program in the previous month, in early August Coca-Cola announced that it just dropped the first-of-a-kind, generative, and shareable collectible on Polygon chain. The announcement coincided with the “International Friendship Day” celebration. Coke said that this special digital collectible drop is part of the company’s ways to thank fans and supporters who’ve taken part of the brand’s journey into the metaverse over the last year. The design features of the collectible is said to be inspired by the bubbles inside a coke bottle and expected to be received by the existing Coca-Cola collectible owner by the end of July.
Considering a robust recovery of Matic in July, a 2.5% gain after the official statement of the airdrop is somewhat insignificant. While recent market conditions can be one of the causes, a strong psychological resistance at $1 is also a decent reasoning that can disrupt Matic price efforts to break past that level. As much as people believed that Polygon is one of the top projects that offer decentralized and friendly Ethereum scaling platform solutions, a wider usage of the project and market catalyst are also important parts to bring MATIC to the valuation that it should be.
- Korea Blockchain Week 2022 7th — 14th August 2022 : Korea Blockchain Week is a premier crypto and blockchain event bringing together the brightest minds in the crypto industry to discuss and redefine the future of finance. The event will be packed with panel discussions, pitch competitions, investor meet-ups, and world-class networking opportunities for crypto investors enthusiasts.
- SIGGRAPH 2022 8th — 11th August 2022: The SIGGRAPH community has a unique skill set that diversifies, enhances, and transforms the crypto industry. The event is held to support diversity, inclusion, and elevating all voices through content and experiences through a decentralized world.
- Futurist Conference 2022 9th — 10th August 2022: A 3-day hackathon and workshop series to build the Web3 world. A complete free community event for all developers, mentors, judges, and attendees.The conference is a perfect hub for Web3 enthusiasts.
- DeFiCon 11th-12th August 2022: The event is open to anyone and everyone who wants to contribute to the world of DeFi, crypto, and NFT. It is a perfect networking ecosystem for creative innovators and communities to get the resources that they need to work on their projects.
This article came directly from the Bitrue blog, found on https://bitrue.medium.com/bitrue-weekly-market-report-crypto-to-stay-above-1-trillion-cap-despite-quiet-market-af3fa9e42611?source=rss-c4759c9c6535——2