Market update

Cointree Crypto Market Update - August 26th 2020

Market update for traders

Is it time for consolidation? In a quieter week by Bitcoin’s standards, the largest crypto by market cap ranged between $16,500 AUD and $16,100 until we finally got a decision on short-term direction, and in the last 24 hours, bitcoin has fallen beneath $16,000 AUD.

After reaching $17,000 a week ago Bitcoin looks to be hunting for lower prices as support at $16,000 fails to hold and sellers push the market downward. The cryptocurrency has looked indecisive this week and couldn’t create a higher-high over 7-days and on seeing weakness bears stepped in. Key moving averages the 50/100 have been lost and bitcoin looks to be heading for the 200 EMA to test for resistance in the $15,500 region.

Bulls will be watching how price reacts to the 200 EMA, if it fails quickly then we could be looking at a deeper pullback. The best outcome in the next 7-days would be to see a V-shaped rally back into the range indicated by the purple lines - and, so far this month, all pullbacks of this size and shape have been aggressively bought, so we wait and see if buyers agree that this area holds value.

In a quiet week, some major Alt-coins made major moves...Cosmos was the big winner, up 43%, while Aave was up 30%, and OMG up 87% over 7-days.

Read our full market update here.

## Market update for beginners

Is it time for consolidation? In a quieter week by Bitcoin’s standards, the largest crypto by market cap oscillated between $16,500 AUD and $16,100 until we finally got a decision on short-term direction, and in the last 24 hours, Bitcoin has fallen beneath $16,000 AUD.

After reaching $17,000 a week ago Bitcoin looks to be hunting for lower prices as key support at $16,000 fails to hold and sellers push the market downward. The cryptocurrency now falls into an area where there are strong moving averages that could push price back up, but for now, Bitcoin looks to be heading for the 200 Day Exponential Moving Average in the $15,500 region.

Key Takeaway: Buyers will be watching how the price reacts to the lower $15,000 area, if it fails quickly then we could be looking at a deeper pullback. The best outcome in the next 7-days would be to see a V-shaped rally back into the range indicated by the purple lines - and, so far this month, all pullbacks of this size and shape have been aggressively bought, so we wait and see if the market agrees that this area holds value.

In another big week, some major Alt-coins made major moves...Cosmos was the big winner, up 43%, while Aave was up 30%, and OMG up 87% over 7-days.