Crypto tokens traded mostly higher on Friday ahead of Federal Reserve Chair Jerome Powell’s much-anticipated speech in Jackson Hole. Investors continued their vigilance as the Federal Reserve Chairman’s comments could foreshadow the Federal Reserve’s next rate hike. Except Solana and Polkadot major cryptocurrencies traded higher on Friday. Shiba Inu surged 4% while Cardano, BNB, and Dogecoin each gained cents in the first few hours. The world cryptocurrency market cap traded slightly higher at the $1.04 trillion mark, less by 1 percent in the last 24 hours. However, the total trading volume fell by more than 2% to approximately $63.98 billion.
Bitcoin (BTC) and several major cryptocurrencies are trading sideways as traders avoid taking big bets ahead of the Federal Reserve’s Jackson Hole Economic Symposium, which begins on Aug 25th. Volatility is likely to help investors gain some clarity on the Fed’s stance in the coming days. While short-term price action remains uncertain, on-chain data suggests that Bitcoin may be undervalued, meaning it could offer strong returns if history repeats itself. According to JJ, a resident analyst at Jarvis Labs, Bitcoin’s market cap against the realised cap indicator is at its lowest since 2015. Bitcoin’s bottom in 2015 and 2019 was formed when the indicator hit a low. This indicator reached extremely low values in 2022. BTC/USD surged overnight to hit $21,700. This level, coinciding with the realised price, had marked the key reversal zone to indicate a continuation of the previous day’s uptrend , but at the time of writing, Bitcoin dropped further down and reached its support mark.
The Ethereum blockchain faces one of its biggest upgrades since its inception as it transitions from its current Proof-of-Work mining consensus to a Proof-of-Stake (PoS) model. The merge date is scheduled for September 15, after the successful integration of the Goerli testnet, the final merge of the testnets before the actual transition. Ether (ETH), Ethereum’s native token, saw a bull run in July following the merger date announcement, with its price surging to a fresh 6-month high of above $2000 but failing to sustain the critical resistance. The optimistic enthusiasm about the token price and market sentiment appears to be waning as the merge approaches. There has been a sharp drop in holdings of a significant number of ETH whales. Data shows that the gap between the top 10 no-exchange addresses and the exchange addresses is quite close now. Over the past three months, major whale addresses have sent a significant amount of ETH to exchanges. Addresses without an exchange are down 11%, while exchange-based addresses are up 78%.
On the macro front, ahead of Fed’s annual Jackson Hole symposium and associated Jerome Powell Hair remarks on August 26th, assets are already trading lower. The price index and the change in parity between the US dollar and the euro are points to be kept in mind. The U.S. Consumer Price Index (CPI) inflation slowed since June, and interest remained high over the extent of key interest rate hikes in September. The US Dollar Index (DXY), which rallied the day before, reversed gains and hit a new local low.
Technical Outlook:
BITCOIN:
BITCOIN after making the recent top of $25,211 witnessed a correction and the prices fell almost by 17% and dropped to $20,761. Post this move the asset has been trading in a very narrow range from $20,800 to $21,800 over the past six days. On a daily chart, BTC is trading in an ‘Ascending Channel’ pattern and the prices are trying to take support at $20,500 (Horizontal Trendline & Lower up trendline of the channel). If it holds and sustains above the support then we can expect the bulls to resume the up-move whereas a break below the support can lead to further downfall. To witness a rally, BTC needs to give a breakout above the channel.
ETH:
ETH post surging upto $2,031 from the bottom of $881 faced stiff resistance at the psychological level of $2,000 and corrected almost by 25% and made the weekly low of $1,523.6. The asset made a ‘Spinning Top’ candle at the support of $1,500 and is showing signs of recovery but with low volumes. ETH has a strong resistance around $1,750 (20 Day Moving Average & Horizontal trendline). Once the resistance is broken with good volumes then we can expect the prices to rally up to $2k mark.
MATIC:
Matic made a ‘Cup and Handle’ pattern with the neckline of $0.63 and rallied up to $1.05. Post this move, the asset faced multiple resistances at $1 (Horizontal Trendline &200 Day Moving Average) and witnessed a correction of almost by 28% and dropped to $0.7582. On a daily time frame, Matic is consolidating in a range from $0.765 to $0.835. The asset has a strong support at $0.75 and $0.625 whereas $1 will act as a strong resistance.
Weekly Snapshot:
| USD ($) | 18 Aug 22 | 25 Aug 22 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $23,212 | $21,600 | -6.94% | $25,135 | $23,177 | $21,783 | $20,857 |
| ETH | $1,847 | $1,657 | -10.30% | $2,007 | $1,827 | $1,697 | $1,534 |
| MATIC | $0.86 | $0.82 | -4.77% | $1.03 | $0.86 | $0.84 | $0.76 |
| Cryptocurrency | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 14.12% |
| Ethereum (ETH) | 8.44% |
| Polygon (MATIC) | -14.74% |
| Resistance 2 | $28,500 | $2,000 | $1.05 | $0.60 |
|---|---|---|---|---|
| Resistance 1 | $24,500 | $1,750 | $0.86 | $0.45 |
| USD | BTC | ETH | Matic | BAT |
| Support 1 | $20,500 | $1,500 | $0.75 | $0.33 |
| Support 2 | $17,500 | $1,275 | $0.63 | $0.25 |
Market Updates:
- One of the largest crypto ATM providers in North America, Bitcoin Depot, plans to list its stock on Nasdaq in the first quarter of 2023 through a merger with a special-purpose acquisition company (SPAC).
- The $74 million plan by two former Uniswap Lab executives for a new Uniswap Foundation has just become reality after their proposal received over 99% of the votes from Uniswap (UNI) holders.
- Binance is seeking licensing to establish a presence in the Philippines ahead of a moratorium and providing educational resources for future traders and blockchain developers.
- Major Indian crypto exchange CoinSwitch Kuber had five of its premises searched by anti-money laundering agents on Thursday over alleged violations of forex laws.
Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptos viz. Bitcoin, Bitcoin Cash, Ethereum, etc are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.
