Bitazza Crypto Weekly: Bitcoin Continues To Create New Highs -

Crypto Weekly: 6 – 12 September 2021

Bitcoin’s rally continues, with the market leader able to create new highs above the $51,000 level. Bitcoin’s rally from $28,500 seems to have not lost any momentum, with no signals of a correction yet.

Bitcoin’s continued growth has been supported by disappointing nonfarm payroll numbers, as reported by the US Department of Labor. Nonfarm payroll numbers were much lower than anticipated, leading many to anticipate that the FED will not implement tighter monetary policies any time soon. Many assets benefited from a perceived weakening of the Dollar and saw subsequent price increases.

Bitcoin’s success in creating new highs has pushed it out of its sideways trend, and BTC is now in the midst of a short-term uptrend. That being said, technical indicators suggest that BTC’s uptrend is relatively weak, and it remains to be seen how long it will last.

Meanwhile, JPMorgan analysts have cautioned their clients that the digital asset market, particularly altcoins and NFTs, is beginning to resemble a bubble again. This announcement comes on the heels of an altcoin surge that has pushed altcoin market shares to 33% despite hovering around 22% just the previous month.

Solana and Cardano have been the most prominent altcoins in recent weeks, with both setting new all-time highs. Similarly, trading volume on the NFT marketplace OpenSea has increased by more than 76,000% since the beginning of the year. OpenSea has recorded a $3.4 billion transaction volume in August alone, more than ten times the number in July.

Global investment firm SkyBridge Capital continues to be bullish on Bitcoin, with the company reiterating that they will be sticking to their $100,000 year-end price target for Bitcoin. SkyBridge Capital has now invested $700 million in Bitcoin.

Similarly, Jurrien Timmer, Director of Global Macro at Fidelity, has forecasted that Bitcoin will reach $1 billion two decades from now, citing the rising demand and limited supply of the cryptocurrency as drivers behind their growth projections.

Weekly Technical Analysis: 6 – 12 September 2021

Bitcoin (BTC)

BTC successfully created new highs above the $51,000 level and has broken out of its sideways trend. Bitcoin’s overall picture remains bullish. Traders should consider following a Buy on Dip strategy and enter positions when the price is falling. Despite the strong growth, Bitcoin’s RSI indicates that the uptrend is beginning to weaken, so traders should plan accordingly.

Ethereum (ETH)

ETH successfully set new highs above the $4,000 level before facing a correction that pushed prices back down. Overall, the big picture is still bullish, and ETH may be able to successfully challenge resistance at the $4,387 level this week if its support at $3,376 can remain intact. Considering how high ETH prices are at the moment, traders should consider waiting to buy when prices break down before entering a position.

Polygon Network (MATIC)

MATIC has broken through its resistance level at 50 Baht and will now be looking to test resistance at the 64 Baht level this week. Keep a close eye on the support at 50 Baht this week. If the support cannot remain intact, MATIC’s current uptrend may lose its momentum.

Polkadot (DOT)

DOT was able to break through resistance and has managed to reverse into an uptrend this week. Keep a close eye on the support level at 960 Baht, while DOT looks to challenge resistance at 1,200 Baht this week. Because DOT is just beginning to enter its uptrend, it may be a more attractive token to trade than other altcoins that have been in an uptrend for the past few weeks that now have more significant risks and increasingly limited upside.

Trading and Investment Consideration For The Week

The recent reports from the US Department of Labor indicated that Nonfarm payroll figures were much lower than anticipated. This has led many to speculate that the US Federal Reserve may have to think twice about implementing any contractionary monetary policy in the immediate future, whether it’s reducing Quantitative Easing or raising interest rates.

Earlier sentiments from the Federal Reserve Chairman at the Jackson Hole Economic Symposium this past August were quite optimistic regarding the outlook of the US market, and it remains to be seen if anything will have changed by the time the FED convenes at the September 21-22 FOMC meeting. Regardless, unless global market conditions change dramatically, the digital asset market should continue to grow for the time being.

Bitcoin has continued to create new highs, sustaining the continued advance of the overall digital asset market. Despite many altcoins already having had particularly strong rallies over the past few weeks, many others are just beginning to rally or show signs of reversing into an uptrend. PolkaDot and Polygon are both altcoins entering uptrends with high upside and could generate greater returns than tokens whose uptrend may be beginning to wane.

However, investors are advised to remain cautious as a BTC price correction could happen at any time despite not having had any significant corrections during this recovery period yet. That being said, Bitcoin’s success in breaking through resistance at the $51,000 level pushed it past the 261.8% Fibonacci retracement level, which could attract more buyers to BTC.

Smart Contract platforms continue to perform very well and generate outstanding returns for traders and investors; meanwhile, DeFi protocol tokens have been improving consistently and could be about to break out in the coming weeks. NFT and Blockchain gaming-focused altcoins remain relatively stable and have not faced a correction yet. September is anticipated to be a good month for the digital asset market, despite historically being a down month for Bitcoin prices.

*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 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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