The cryptocurrency market erased $142 billion from its market cap during the last seven days and now stands at $1,004 billion. The top 10 coins were all in red for the same time period with Solana (SOL) and Cardano (ADA) being the worst performers with 23.6 and 22.5 percent of losses respectively. Bitcoin (BTC) is currently trading at $21,168 while ether (ETH) is at 1,565.
Bitcoin closed the trading day on Sunday, August 14 at $24,300 after failing to keep its price above $25,000 and being unable to break above the horizontal resistance formed near $24,500. Still, it closed the week with a 5 percent increase and above the 200-period Moving Average on the weekly timeframe chart.
On Monday, the new week started with a fresh new breakout attempt to the upside from bulls. The BTC/USDT pair climbed all the way up to $25,200 in the first half of the trading day but then was forced to go all the way down to $24,100 to close with a loss in one of the most volatile sessions recently.
The biggest cryptocurrency registered its third consecutive candle in red on Tuesday, August 16. It hit $23,900 in a potential consolidation before an uptrend continuation.
The mid-week session on Wednesday came with a good push from buyers in the morning that helped them re-test the mentioned resistance at $24,500. The failed attempt to break it resulted in a 2 percent drop to $23,300, right to the 21-day EMA.
On Thursday, August 18 the buying volumes remained significantly lower compared to the previous periods and the coin once again closed in red, losing the mentioned dynamic support. As previously discussed, the double top formation combined with an obvious bear flag on both the daily and weekly timeframes resulted in a correction.
The Friday session brought a lot of pain to bulls. BTC dropped to $20,800 and lost 10 percent, invalidating the last higher low.
The weekend of August 20-21 started with a push to $21,150 on Saturday which was followed by another green candle to $21,500 on Sunday. Bulls tried to break the old resistance right below $22,000 but were unable to do so.
What we are seeing on Monday is a continuation of the downtrend.
The Ethereum Project token ETH hit a three-month high at $2,030 on Sunday, August 14 but after a solid 15 percent rally earlier in the week it was time for a healthy pullback. It corrected the price down to $1,934.
The ETH/USDT pair continued to fall on Monday, August 15. It reached $1,890 in a highly volatile session during which it was trading in the $1,870 – $2,011 range. Last week Ethereum’s merge successfully went live on its last testnet – Goerli, but the price rally looked a bit exhausted already. The trading volumes continue to fall, in divergence with the raising price in the last few weeks.
The Tuesday session was no different and bears continued to be in control of the market. The most popular altcoin closed at $1,877.
The third day of the workweek came with a quick reversal to the upside in the morning. The ether climbed all the way up to $1,952 to add 5 percent to its valuation, but the selling pressure increased significantly in the evening session in Europe and the coin eventually closed in red, at $1,830.
On Thursday, August 18 the coin remained flat at around $1,840, closing slightly higher after 4 consecutive sessions in red. It was still trading above the potential support right below $1,800 and the 21-day EMA.
Things changed drastically on Friday. The ETH/USDT pair fell sharply to $1,607 decreasing by 13.3 percent in just one session and dropping below the mentioned supports and the last higher low on the daily timeframe.
The first day of the weekend came with another push from bears. ETH hit $1,528 – a 24 percent correction from its last high.
Then on Sunday, it climbed 2.8 percent up, but the perspectives in front of the altcoin market did not look good enough for a rally continuation.
The ether is currently trading at $1,566.
- BNB (BNB)
BNB (also known as Binance Coin) was one of the least impacted altcoins from the recent price correction. The BNB/USDT pair continues to be among the 5 biggest digital assets as per CoinGecko erasin “just” 7 percent on a weekly basis while the rest of the coins in the Top 10 registered double-digit losses.
BNB hit a dynamic resistance at the 21-period EMA on the weekly timeframe peaking at $330 in early August. There is also a horizontal resistance around the September 2021 and February 2022 lows in the $330-$340 area. It is also the last high from May 2022.
The BNB/USDT pair is most probably doing a mid-term consolidation before the next leg up.
Potential low-timeframe support in the $260-$270 zone.
Altcoin of the week
Our Altcoin of the week is EOS (EOS). One of the legendary altcoins from the 2017/2018 bull run, EOS was the original “Ethereum killer” protocol and the next big thing in the cryptocurrency world promising a series of improvements to the then newly born smart contract world. However, it could not live up to the expectations and was not able to recover from the crypto winter.
Additionally, it lost 94 percent of its valuation during the last market correction hitting a low of $0.8 in mid-June, 2022.
The EOS token has increased by 92 percent since then climbing to $1.494 as of the time of writing this market update. It was the best performing digital asset in the Top 100 list during the last seven days, jumping 19 percent up to hit the 21-day EMA on the daily timeframe chart.
The main reason behind the surge in the price of EOS is the recently announced launch of the Yield+ incentive program, which aims to attract DeFi protocols to the EOS ecosystem and further build the user base and raise the Total Value Locked (TVL).
Additionally, EOS will rebrand to EOSIO through a hard fork in August.
The next big multi-timeframe resistance is in the $1.9-$2 area where the 200-day EMA is currently placed. Support right above $1.3.