Cointree Crypto Market Update - August 5th 2020

Market update for traders

Jump to the beginner's version

In the week that was, bitcoin’s trajectory teased investors with another sudden break to the upside and $16,000 AUD looms as the level to break. At the time of writing, bitcoin sits at $15,760.

In the wake of last week's stunning launch from $13,000 to $16,000, bitcoin, as it so often does after a big move, has consolidated into a rising range (indicated in the chart) with a positive “higher-low” structure. In the past 7-days, bears attempted to push the cryptocurrency below $15,200 three times but failed, creating a local floor which bulls will look to use for continuation up. A flash crash on the 1st of August caused some panic, but buyers quickly stepped in and pushed price back into the channel.

As the channel shrinks look for bitcoin to make a move soon. If $16,000 can be breached then we should quickly see a move to the $18,000 level. On the flipside, bears will be looking to spot weakness in buying volume and push the largest crypto by market cap back down to the 50 EMA on the 4hr where there should be strong support if $15,000 collapses.

Big alt-coins have flourished over the last 7-days... XRP was the big mover, up 41%, while chainlink was again strong, up 34%, and ethereum gained 26%.

Market update for beginners

In the week that was, bitcoin sits at $15,760 and $16,000 AUD looms as the level to break.

In the wake of last week's stunning rise from $13,000 to $16,000, bitcoin, as it so often does after a big move, is moving into a climbing price range (indicated in the chart). In the past 7-days, sellers attempted to push the cryptocurrency below $15,200 three times but failed. A flash crash on the 1st of August caused some panic, but buyers quickly stepped in and pushed price back into the channel.

As the channel shrinks, look for bitcoin to make a move soon. If $16,000 is breached, then we should quickly see a move to the $18,000 level. On the flipside, sellers will be looking to push the largest crypto by market cap back down below $15,000, a move that would signal the market wants to move lower.

Big alt-coins have flourished over the last 7-days... XRP (Ripple) was the big mover, up 41%, while chainlink was again strong, up 34%, and ethereum gained 26%.