WMA: Bitcoin sales increase after multi-week gains as most altcoins remain stable
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $368 billion
- Bitcoin loses 4% over the week as a result of increasing sales
- Ethereum loses more than 6% throughout the week but recovers slightly on the weekend
- XRP gets back over $0.27 on the weekend after losing 10% during the week
- There is no stopping for the DeFi craze, which now has reached over $7.5 billion in locked value protocols
Crypto Trends 24th – 30th of August 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market restored more than $6 billion in value over the past week. It is a remarkable recovery considering that it hasn’t been the best of weeks for Bitcoin and most of the ensuing altcoins. One factor behind it is the continuous surge in value and popularity of the DeFi market.
Bitcoin had a rough week, to say the least. Following a multi-week period of value increments, the most popular crypto in the world started dropping as soon as the week began. On Tuesday, it had reached as low as $11,300. It remained stable for a few days before falling briefly on Friday to $11,100.
As the weekend advanced so did Bitcoin’s value, which recovered most of its lost points, and it is now trading at $11,610. Should BTC enjoy another bullish run, it could surpass the next resistance levels at $11,800 and $12,000. Otherwise, a pullback from the bears may see it land on the nearest support level at $11,300 or, even worse, below $11,000.
Ethereum is struggling with volatility as it closes another week of seesawing movements. The second-largest crypto by market cap oscillated frantically between $385 and $410 throughout the last seven days. On the weekend, it finally showed signs of stability by remaining above the psychological $400 level.
At the moment, Ethereum is trading at $407. The next resistance levels lie at $400 and $410, while the closest support safe net stands at $382.
Ripple’s XRP did not have a remarkable week either. It started on Monday, trading as high as $0.297, but it quickly fell on a slippery slope that took it as low as $0.255. It was a disappointing trajectory after almost a month of continuous rise. Fortunately, on the weekend, XRP started climbing back up the ladder, and it is now trading at $0.277. The next resistance level lies at $0.292, and the nearest support is at $0.256.
Chainlink remains surprisingly stable above the $15 mark and continues to attract support from the community. It is now trading at $17.32 and looking to break the nearest resistance at $20.
Elsewhere, the DeFi sector continues its rise in value that attracts even more attention for the crypto market. As of now, it managed to amass more than $7.5 billion in locked value, and new protocols and projects appear every day.
What’s in the News?
- The cryptocurrency lender, Block Phi managed to raise $50 million in the most recent funding round
- Fidelity Investments will reportedly launch its first Bitcoin-only fund that will require a minimum investment of $100,000
Next Week’s Market Forecast
The first week of September should be an interesting one for the cryptocurrency market. It is expected that Bitcoin and some of the most prominent altcoins will react to how the market for precious metals will evolve after the latest statement from the U.S. Federal Reserve. The central bank of the United States mentioned that it will be changing its approach to inflation to keep lower rates for longer.
After the effects of the COVID-19 pandemic started settling in, an obvious correlation appeared between the gold market and the crypto market, specifically Bitcoin. So, as gold is pulling into the 50-day moving average, it will be curious to see if Bitcoin will ride on the back of another bullish run.