Crypto market today: Bitcoin (BTC), Ethereum (ETH), The Sandbox (SAND), Bitcoin Gold (BTG) – 30th August 2021
It’s Monday, 30th August, and we are bringing you another edition of Cointribune’s crypto analysis! Find out everything that has already happened in the market and what to expect next in our new article! If you want to check out the previous issue of the column, please follow the link. Here we go!
Bitcoin is still near a key resistance zone, but for now, it doesn’t look like it has the momentum to breach that level. The first cryptocurrency spent the weekend in the red zone and on Monday it didn’t go too far either.
If BTC still fails to find the strength to break higher — the continuation of the bull run becomes be highly doubtful. Looking globally, except for the psychological level in the $40,000 zone, this asset has a good chance to dump to close to $35,000. Such a significant price drop would not only cut off any optimism in the market, but would also seriously undermine the sentiment of particularly susceptible altcoins, pushing many investors into loss.
The lack of new local highs on the chart also speaks in favour of the dump. The latest peak was lower than the previous one, which again indicates a serious shortage of power in the buyers’ camp.
The market lacks any serious positive news. Even the revelations of the Schiff family had no effect on the market. That is, the admission by the father, Peter Schiff, a famous gold bug and an ardent Bitcoin critic, in which he regretted not buying the first cryptocurrency back in 2011. Equally interesting was a statement from his 19-year-old son Spencer Schiff, in which he admits to having been selling off his gold holdings and actively investing in BTC since August last year.
Despite the spectacular growth earlier, the whole of last week ended up being a loss-making time span for the first cryptocurrency. It looks like the BTC is moving within the descending trading channel (purple lines) and the nearest support in this case would be found only near the area of $35,000 – $38,000.
In case the aforementioned support is reached, the first cryptocurrency will have a good chance to break out of the downward trading range by breaking through the upside triangle formed by crossing the ascending channel support (blue line) and descending channel resistance (purple line).
However, if the upside breakout fails, the next global key support will be at $20,000, a move below which would be considered the announcement of the start of a new crypto winter.
The second largest cryptocurrency by market capitalisation continues to move within a triangle pattern. However, there is a possibility that Ethereum will not complete this pattern. This is evidenced by the formation marked on the chart, which is very similar to a consolidation (accumulation), at the end of which the cryptocurrency will have a strong upward movement.
Of course, Bitcoin should not be discounted anyway. It still has an impact on much of the altcoin market, which at any time could have a major effect on the balance of power in the latter.
However, the deflationary nature of ETH should not be forgotten. Now that the network fees are burnt, the rate at which Ethereum supply is increased has slowed significantly, which is also reflected in the demand for it. It is likely that in the future, the second largest coin will not only displace its older sibling from the CoinMarketCap top spot, but also break free of its influence.
If you are interested in acquiring high-potential altcoins, Ethereum is an asset you simply cannot ignore. Looking at its history since the last crypto winter, we can conclude that since then, ETH has increased in value by more than 30 times.
Another factor that could seriously spur the growth of the second most capitalised cryptocurrency is the wide range of decentralised applications, decentralised financial protocols and non-fungible tokens being launched on it. Now that fees are burnt on the blockchain, all of the aforementioned solutions and services, through their activities, are significantly increasing the amount of money burnt in fees. There have already been episodes when, amidst the sale of another NFT, there was such a rush among users that the amount of ETH mined began to lag behind the amount of coins withdrawn from circulation, leading to a reduction in Ethereum issuance.
Fear and Greed Index
The Fear and Greed Index is still in the “greed” area. This suggests that even though there are dim prospects for Bitcoin to continue to rise, most of the market is still holding out hope.
That said, the market’s judgement did not arise from nothing. Buyers do not have enough power yet, but BTC once again tested the key resistance and it managed not to drop too much, so far. This might be the sign of the bulls’ consolidation beyond this level, which might lead to a new accumulation and a subsequent breakdown of the hated barrier.
Anyway, the market sentiment is more optimistic than downbeat. Perhaps that will play a role in the upcoming attempt of BTC to break through to the $50,000 level and above.
Top 10 altcoins
CoinMarkerCap’s top ten altcoins are not very impressive today. Assets have scattered everywhere, but even when it comes to drops, their magnitude does not look significant. Even Dogecoin (DOGE), which was reinvigorated by the reboot of the Dogecoin Foundation, joined by Vitalik Buterin and a representative of Elon Musk, is still not shining with any record numbers.
The only thing worth mentioning is Solana, which, despite being blatantly overbought, continues to set new records without looking back at Bitcoin. Today, the asset even reached $101 at one point. This is especially noteworthy given the fact that SOL was trading below one dollar at the time of its listing.
This week’s gainer is The Sandbox (SAND), which even in a volatile market, managed to bring its holders more than 40% profit overnight, and even more than 60% over the week. Obviously, these figures are only valid at the time of writing. At some point, SAND had much higher returns, but half of the current rise the altcoin has already lost, returning to the ascending trading channel.
The loser of the day, among the top 100 cryptocurrencies according to CoinMarketCap, is Bitcoin Gold (BTG). Within a few hours from the beginning of the day, this asset has already lost more than 10% of its own price, while its weekly gain was only 8%.
BTG is moving between two rising channels, and the asset has already reached the resistance of one of them. In general, the cross between the resistance (green line) and the support (white line) forms a triangle with a raised top. This pattern heralds a decline in the price of the asset, which by itself, fits within the movement along the green trading channel.
Mondays are tough for all, including crypto enthusiasts. Bitcoin is still unable to break through resistance, Ethereum is gathering strength for a spurt that may not happen, and other altcoins are watching the situation with bated breath, unable to decide whether to grow or not.
Don’t forget about risk management and don’t neglect stop-loss orders. Only then, your trading deposit or investment capital will always be reliably protected from the vagaries of the market. Especially a market as volatile and unpredictable as the digital asset market.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.