in

Weekly Bitpanda Pro Market Recap #18

Weekly Bitpanda Pro Market Recap #18

Read this article in German and Turkish.

Highlights of this week:

–       BTC’s in-range trading and accumulation process

–       Ethereum is trading under €2,000 again

–       Cardano (ADA) is still one of the best-performing assets

–       Altcoins are mostly trading in a moving range

–       S&P Dow Jones launch five new crypto indices

BTC’s in-range trading and accumulation process

Last week was, again, very slow for the cryptocurrencies market as most coins were trading in a narrow range. Bitcoin led the market, dropping some 9% in the last 7 days, as the bulls and the bears were battling for control between the €27,000 and €30,000 level. Volatility dropped in comparison to the weeks before, suggesting that the market could be in an accumulation zone, preparing for the next major move. The surging BTC outflows from centralised exchanges suggest that buyers are accumulating coins. The number of BTC held on centralised exchanges has been consistently falling since late May, with roughly 2,000 BTC flowing out of exchanges every day. Reserves on exchanges have fallen to levels that haven’t been seen since April.

Weekly Bitpanda Pro Market Recap #18

Bitcoin’s dominance is holding above the 45% level, up from the 39% reached in May. As dominance is increasing altcoins are lagging, but BTC still stands as the year’s underperformer when comparing its YTD returns with other big cap coins, like ETH or ADA. While the biggest cryptocurrency by market cap metrics lost 50% from its all-time-high, it’s still up some 20% since the beginning of the year.

Ethereum is trading under €2,000 again

Ethereum is moving under the 50-day simple moving average which it touched last week, but the bulls could not sustain the higher levels. The resistance level at €2,000 has attracted some profit-taking by short-term traders and only a break above this level would be an indication that the correction might be ending. The price is still moving inside of the falling wedge pattern, which has been forming since the start of June, but bulls need to hold their support level to maintain their upside bias, or they will risk losing the market to bears. A break under this level would likely make Ethereum plummet to new 2021 lows.

Weekly Bitpanda Pro Market Recap #18

A controversial update called the “London hard fork” of the Ethereum blockchain may take place later than planned as it is now expected to happen on the 4th of August, not in mid-July, as first anticipated. The news is not so negative though, as the fork was postponed many times before and this one is no different. The average price of gas on the Ethereum blockchain fell to its lowest point since March 2020, dropping to the 15-30 Gwei range. The figures are down significantly from the 300 Gwei range seen in April when transaction fees surged.

Cardano (ADA) is still one of the best-performing assets

Bitcoin’s tightening price range suggests that a sharp, trend-changing breakout in BTC and altcoins is brewing. Some of the altcoins have been largely outperforming Bitcoin this year already, one of them being Cardano (ADA).

ADA is one of the best-performing assets this year as investors remain bullish in anticipation of the “Alonzo” full smart contract implementation which should happen later this summer. Despite the overall correction, ADA is still up some 600% from the beginning of the year.

Weekly Bitpanda Pro Market Recap #18

Altcoins are mostly trading in a moving range

The bulls are still trying to push Polkadot (DOT) above the overhead resistance at €14, but so far could not sustain the higher levels. The bears dragged the price back into the €11 zone. This suggests that bears are not willing to let go of their advantage. The range trading has been on since mid-June and any breakout will form a new trend for DOT.

Weekly Bitpanda Pro Market Recap #18

We can see a movement similar to DOT’s in Chiliz (CHZ), but the range is a bit wider. The “ultimate fan token” is trading in a wider range with a support level being of €12, and a resistance level of €30.

Weekly Bitpanda Pro Market Recap #18

IOTA bulls and bears are fighting for control between the resistance level of €0.8 and the support level of €0.55. For now, neither side seems strong enough to take control of the price.

Weekly Bitpanda Pro Market Recap #18

S&P Dow Jones launch five new crypto indices

Other than some FUD (fear, uncertainty and doubt) from China mostly connected to stablecoin issues, traders have been focusing on the positive indicators. Institutional investors are accumulating larger cryptocurrencies and more and more new products are being introduced to the market. One of the most positive developments was the launch of new broader index products.

S&P Dow Jones Indices, the world’s leading index provider, issued five new cryptocurrency index products, which is the first major expansion of its digital assets benchmarking tools since entering the market in May. One of the newly -added indices is the Broad Digital Market (BDM) which provides a wide performance snapshot of the cryptocurrency market and includes more than 240 coins. The market for cryptocurrency assets continues to grow and with that, transparent benchmarking and index-based solutions based on crypto and blockchain assets are more essential than ever. The market indices will make it easier for investors to access and assess emerging asset classes.

Not trading on Bitpanda Pro yet? Register now

Trade like a Pro on the go! Download the Bitpanda Pro App (Android)

Go to Source
Author: Bitpanda Pro

What do you think?

Written by secret

Leave a Reply

Your email address will not be published. Required fields are marked *

Why Bitcoin And Crypto Bulls Require More Patience

DeFi can be halal but not DOGE? Decentralizing Islamic finance