bitcoin
After several weeks of low volatility, when the price of bitcoin practically did not change, the cost of the first cryptocurrency fell immediately by 10%. Almost the entire week was in the red zone, and the biggest drop occurred on Thursday, August 17, when BTC fell by more than 7%.
Source: tradingview.com
The first negative factor in such dynamics of the world’s first cryptocurrency in terms of capitalization was the news that Elon Musk’s Space X company sold its savings in BTC in the amount of $373 million. The amount itself is significant, so also private investors, having learned about the sale , could quickly get rid of their bitcoins in a panic.
Another catalyst for negative dynamics could be the publication of the minutes of the July meeting of the Federal Reserve System (FRS). It once again emphasizes that further tightening of monetary policy is quite likely. In particular,
allowed another increase in interest rates.
In addition, the yield on US government bonds reached its maximum over the past 16 years – 4.31%. It is likely that investors are shifting their focus from high-risk bitcoin with no income guarantees to safer treasuries.
According to technical analysis, there has been a downward trend. Other indicators also testify to this. The price is below the 50-day moving average (marked in blue). The RSI indicator fell below 30, indicating oversold conditions. However, if the fall is not fleeting, then its signals should not be taken into account. But the ATR volatility indicator began to grow. True, this state of affairs is unlikely to please crypto enthusiasts. The nearest support level could be the June 2023 lows around $24,800. The resistance level is an important psychological mark at $30,000.
Source: tradingview.com
Naturally, on the news about the decline of bitcoin
sank index of fear and greed. Over the week, the indicator lost 14 points, falling from 51 to 37. This signals that fear prevails in the current conditions.
Ethereum
Similarly to bitcoin, the price of ether fell. Only its decrease turned out to be somewhat less – about 8.33%. It is worth noting that during the trading session on August 17, Ether fell by more than 16%, dropping below $1,550.
Source: tradingview.com
The dynamics of ether and other cryptocurrencies in many ways continues to repeat the movement of bitcoin. In this regard, the reasons for their fall are similar.
At the same time, there is also positive news regarding Ethereum. For example, in relation to futures ETFs. According to information
sources Bloomberg, close to the US Securities and Exchange Commission (SEC), the regulator is not going to prevent the approval of new exchange-traded funds. The approval process will not be quick: the first results should be expected no earlier than October. At the same time, it has not yet been reported which proposals of which companies will see the green light of the SEC.
Last week, it became known about projects on Ethereum that received funding in the second quarter of 2023. Only 57 pieces. Most (17)
there are in the Cryptography and Zero Knowledge Proof category.
From the point of view of technical analysis, the level that was last week’s support ($1,800) was broken and has now become a resistance level. The new support is the $1,650 mark.
Source: tradingview.com
Cardano
The decline in the value of the Cardano cryptocurrency for the week of August 11-18, 2023 was just under 10%. On August 17, the coin dropped to its two-month low, $0.24. In general, the correction has been going on for more than a month, starting in mid-July 2023.
Source: tradingview.com
The reason for the decline of Cardano remains the actions of private investors with little capital. Large holders of ADA tokens, on the contrary, continue to increase their positions. According to the analytical platform Santiment, the number of wallets holding 100,000 or more ADA is 25,294. This is
greatest score for the last 16 months. Obviously, big business believes in the growth of Cardano in the future, otherwise the acquisitions are meaningless.
The current situation clearly indicates the predominance of bears. Of the last 34 trading days, only 14 ended in positive territory. At the same time, only twice the growth was more than 3%. The mark around 24 cents is a strong support level. It met on the chart for the second time in a week (for the first time this was observed in December 2022). Resistance is the level around 30 cents, the price at which the March 2023 correction ended.
Source: tradingview.com
Thus, the long standing still on the crypto markets ended: the cryptocurrencies collapsed together. This was facilitated by statements by the US Federal Reserve about a possible tightening of monetary policy, the sale of bitcoins in the amount of $ 373 million by SpaceX and the growth in US government bond yields to a 16-year high.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
