Bitazza Crypto Weekly: Altcoins Showing Signs of a Bull Run As Bitcoin Slows -

Crypto Weekly: 16 – 22 August 2021

This past week Bitcoin tested a high at the $48,000 level on the back of its robust two-week rally before starting to slow. Likewise, Ethereum’s rally seems to have stabilized, with Ethereum prices starting to trend sideways.

Meanwhile, other altcoins are beginning to have strong rallies. These include ADA, whose rally propelled it to as high as the number-3 spot in terms of market capitalization as demand for ADA surged in anticipation of the upcoming Cardano upgrade. Similarly, XRP has begun to send signals of an uptrend once more.

Bitcoin Dominance is beginning to decrease, suggesting that the altcoin market is starting to increase its share over the digital asset market as a whole. If Bitcoin fails to create new highs this week and ends up trending sideways, the market may shift its focus and funds from Bitcoin to smaller altcoins, particularly those with upcoming features or updates that may strengthen their fundamentals.

Blockchain gaming tokens, which have historically tended to trend in the opposite direction of the rest of the digital asset market, have begun to stagnate. In contrast, the volume and value of NFT trading on platforms like OpenSea have continued to grow exponentially and have been one of the critical factors driving Ethereum’s recovery.

Of course, the other big news this past week was the $600 million hack on the Poly Network. The Poly Network is a DeFi protocol that operates on the Binance Smart Chain, Ethereum, and Polygon blockchains that focuses primarily on improving cross-chain interoperability. This hack marks the most significant theft ever in the crypto industry; however, its impact on the rest of the DeFi market seems to have been minimal so far.

Coinbase, the largest cryptocurrency exchange in the US, has reported second-quarter earnings of $1.9 billion, beating
analysts’ estimates thanks to the timely recovery of the overall digital asset market.

Finally, according to the NFT analytics site CryptoSlam! Axie Infinity has become Ethereum’s first blockchain game to record over $1 billion in all-time sales with over 2.4 million total transactions from the 324,850 active users on the platform. Axie Infinity’s stellar performance and active user-base have been key contributors to Ethereum’s recovery.

Weekly Technical Analysis 16 – 22 August 2021

Bitcoin (BTC)

BTC’s rally has slowed after beginning to test the $48,000 level. BTC faced a minor correction; however, BTC is still clearly in an uptrend for now. Traders can treat this dip as an opportunity to enter a BTC position for some short-term profit. That being said, BTC’s upside is beginning to look more limited, and its uptrend is starting to weaken, so caution is advised when trading BTC this week.

Ethereum (ETH)

ETH’s rally continues. Despite beginning to fail to set new highs, ETH is in a clear uptrend. Support at the $3,000 level is critical. If this support can remain intact, look for ETH to challenge resistance at the $3,800 level this week.

Cardano (ADA)

ADA had an outstanding rally last week and is in the middle of a clear bull run. Support is set at the 57.50 Baht level, and traders should look for short-term opportunities to buy when prices dip. If support can remain intact, ADA will look to test resistance at the 80 Baht level. While ADA is in a clear uptrend, traders should be aware that ADA has historically proven to be vulnerable to short-term price fluctuations; therefore, those looking to enter an ADA position must be comfortable with some degree of volatility.

Ripple (XRP)

XRP had a strong rally over the weekend where it successfully broke through its previous resistance level. Keep a close eye on the support level at 36 Baht and its new resistance at 56 Baht. If XRP can enter a proper uptrend this week, there is a chance that it could return to as high as 64 Baht.

Trading and Investment Considerations For The Week

Bitcoin’s uptrend continues despite failing to create new highs. Bitcoin’s continued positive performance has given the entire digital asset market the support it needs for other altcoins to grow. If Bitcoin can sustain its uptrend this week, look for the overall market to remain bullish.

One group of tokens that have had outstanding performances and have already generated greater returns than the rest of the market includes ETH, BNB, ADA, SOL, and LUNA. For these tokens, traders are advised to wait for prices to fall before buying. However, entering a position at this stage of these tokens’ recoveries is a relatively high-risk proposition. Traders must make sure that prices are not making new lows, as these tokens have already had solid recoveries, and a price correction could prove incredibly costly for traders that enter at an inopportune time.

Another group that traders should keep an eye on is the tokens in the early stages of a bull run, where they have begun to enter a technical uptrend, but prices have not risen significantly yet. This group includes tokens like DOGE, XRP, DOT, MATIC, RUNE, and CAKE. These tokens offer an excellent opportunity to make some profit while the market is still bullish and has much less downside risk than the previous group of tokens.

The final group includes tokens that have just started to send signals of an upcoming bullish reversal that hasn’t been confirmed by the market yet. Those keeping a close eye on these tokens may have an opportunity to enter a position from the start of a bull run for these tokens. Tokens in this group are LINK, XLM, VET ALPHA, and OMG.

Regardless of the market’s recovery, the overall digital asset market still remains at risk of significant volatility, and a correction could occur at any moment. Therefore, traders should be cautious of investing any more capital into their crypto portfolio and should have appropriate stop-loss orders in place to limit any loss in case the market moves in an unfavorable direction.

*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The email and the information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.

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