Bitcoin and Ether Market Update August 4, 2022
The total crypto market cap decreased by $10 billion for the period since Monday and now stands at $1,067 billion. The top ten coins are trading mostly in red for the last 24 hours with Binance Coin (BNB) being the sole gainer adding 2.9 percent while Solana (SOL) lost 3.9 percent of its valuation. At the time of writing bitcoin (BTC) is trading at $22,800. Ether (ETH) is at $1,610.
Bitcoin closed the trading day on Sunday, July 31 at $23,300 in its third consecutive day in red and right after peaking at $24,700 during the previous session. As mentioned in our last market updates, the zone above represents a liquidity gap created during the market crash back at the beginning of June, so the biggest cryptocurrency was rejected at its lower boundary. The good news for buyers was that they were able to keep the price floating above the 200-day Moving Average (MA) on the weekly timeframe which is an important indicator if sellers or buyers are in control of the market.
The coin closed the seven-day period with a 3 percent increase. It was 17 percent up in July.
On Monday, the BTC/USDT pair remained flat after trading in the $22,800 – $23,500 range during the intraday session.
Things did not improve much for bulls on Tuesday and we saw bitcoin drop down to the zone below $23,000 for the first time since last week. It found some stability near the 21-day EMA.
There was a lot of volatility on Wednesday as BTC climbed up to $23,600 in the early hours of trading just to forfeit all gains in the evening. It closed the day at $22,815
Currently, the price is right below the $23k mark.
The price of the Ethereum project token ETH continued to be driven mainly by the upcoming switch to Proof of Stake (PoS) consensus mechanism (the so-called Merge).
It ended the previous seven-day period with a 5 percent increase in its fourth consecutive week in green. The ether, however, reached the once extremely stable horizontal support level of $1,700. Now it could be that bears have turned it into a solid resistance.
On Sunday, July 31, bulls were finally rejected there and the ETH/USDT pair fell down to $1,686. Still, it ended the month of July with a 56 percent increase.
On Monday, the leading altcoin dropped down to $1,625 as the selling pressure was increasing. The move resulted in a 2.5 percent pullback.
The coin remained flat on Tuesday as neither bulls nor bears were able to take over control of the price action. ETH was trading in the $1,546 – $1,670 range throughout the day.
The mid-week session on Wednesday came with an early push from bears to $1,680. The momentum was not on their side and the coin eventually closed the day in red.
What we are seeing midday on Thursday, August 4 is a continuation of the downtrend. ETH is at $1,610.