Cryptic ball: are you buying this dip?
Another good weekend and interesting start of the week! Bitcoin led crypto markets to a new local high, testing $42k on Saturday and Sunday. Remember this important level was the one which defined May's crash, as once BTC lost it we then saw a 30% crash the following day. Fortunately, we just saw heavy profit taking now, as traders felt like the top of the past month's range wouldn't break so easily.
Since that moment, which coincided with the monthly close and with Sunday's daily open, price is down a little bit more than 10%. What next? Note, as you can see below, that volume was low on that second test, which indicated a potential top. Conversely, the high volume on today's bounce suggests a higher low is being formed in this market's new bullish structure, i.e. that it won't dump more.
Chart art: are you trading with the guidance of volume?
Market musings: are you selling the EIP-1559 news?
Now, there are two major bitcoin scenarios which we're considering for August. On the one hand, bitcoin soon tries and confidently conquers $42k, creating a new trading range where the original cryptoasset begins flirting with previously important price levels, such as $51k, $60k, and beyond. That would wake up those still in holidays earlier than anticipated, while negatively impacting most alts.
The other scenario plays into what we explained last Friday: bitcoin remains sideways while alts (and NFTs) pump, eventually propelled by Ethereum's London hardfork which will take place this Thursday. The orange coin may even follow and conquer $42k, albeit in a non-spectacular way. However, given how ether has already pumped for 12-straight days, it's more likely we get a calm week ahead.
Then, once the summer ends we're expecting 2017 to repeat itself. Alex Mashinsky, CEO of Celsius, accurately predicted major price movements so far. He argues bitcoin will reach a top of $140k-$150k this year, closing below $100k by the end of December - following typical pre-Christmas profit-taking activity. The only question is if bitcoin starts pumping now or in September. Start planning!
Visual block: are you buying NFTs on OpenSea?
Three things: are you using crypto?
- Three Arrows Capital, one of the industry's largest funds, is one of the drivers behind the recent NFT pump. Learn all the details in Michael Tant's thread.
- CabinDAO, a recent crowdfunding for creators to live in cabins, shared a great tech stack and plan for your own Decentralised Autonomous Organisation!
- Fintech Business Weekly, a popular newsletter, recently analysed "who’s using crypto, how, and why". Check all the insights in this post.