Market News
Bitcoin’s price keeps trading downwards, according to CoinGecko.
Currently, bitcoin’s price is trading close to $30,700, according to Nomics. While on-chain metrics remain mostly bullish, sellers control the order books, which means the trend will keep moving down.
While price-action may be disappointing, we think this remains an excellent time to accumulate other bitcoin and top altcoins such as ETH, HEX and FEVR.
We expect the bearish momentum to continue for a few more weeks until buyers come to the rescue. Historically, a summer run-up usually ends up in disappointment before the final rally begins.
According to Coindesk, “Bitcoin (BTC) is stuck in a month-long downtrend as traders experienced choppy conditions over the past few days. A break below $30,000 is likely given the loss of upside momentum and strong resistance on the charts.
The cryptocurrency was trading around $31,000 at press time and is down about 5% over the past week.”
Hence, most crypto news outlets remain grim on bitcoin’s price short-term outlook.
In the altcoin section, we dive HEX and FEVR, two of our favourite altcoins at the moment.
For now, let’s see what traders are saying.
Traders Tweets
This week’s first tweet comes from TraderSZ, a crypto trader and TA analyst.
He shared bitcoin’s daily price chart and wrote “$BTC first target done.” pointing to the fact that he expected BTC/USD to drop in the next few weeks significantly.
The next target he’s looking into is just below $29,000.
Will bitcoin’s price reach such low valuations? We think it could drop even lower towards the low $20,000s.
The following tweet comes from Dan Tapiero, a legendary macro investor.
He wrote that "No clearer sign of the continuing debasement of fiat. H/T @TaviCosta
This IS the govt "inflating" away from its debt in real time..And now too much total debt for rates to rise and stay high. #Bitcoin as lifeboat..that also pays yield. Institutions still don't get it."
He explains that the U.S. Government is creating more currency, increasing inflation, lowering the debt burden since your money loses purchasing power. This means that, as time goes by, the money the government owes is worth less. Or perhaps, worthless. We leave that up to you.
The last tweet of the day comes from Squish, a crypto trader and enthusiast.
He shared an exciting thread defending ethereum's long-term value, and why ETH/USD will skyrocket.
Essentially, as we explain: "To be bearish on $ETH on a long term time horizon, you have to believe improving fundamentals won't affect price… And decreasing sell pressure won't affect price… And decreasing supply won't affect price…"
While we're still doubtful of ETH2.0 as a proper solution to the scalability debate, we're open to its improvements and looking forward to releasing the new software and virtual machine.
Market Watch
Bitcoin’s price has had a positive weekend; however, another massive 4% dump has happened today. We expect more pain to come soon. We welcome it as it represents another buying opportunity. Thank you, Satoshi.
Currently, bitcoin’s price is trading just above $30,700 and compared to last week, it lost around 10%, according to Nomics. Not least, bitcoin’s price is still below a critical support level, the 21-day EMA (blue) - a clear bearish signal that BTC/USD may drop even further if buyers don’t come to the rescue. There isn’t much support left; therefore, we’ve lost all hope of a reversal soon.
Capitulation would mean weak hands have entirely left the space. That’s an excellent sign for a trend reversal. Let’s all pray it comes quickly. Nobody enjoys a painful death.
So far, bitcoin’s salvation has been strong buy support between $28,000 and $30,000. As we’ve written in the intro, if this support zone is broken, prepare to visit the low $20,000s.
The VPVR, on the left of the chart, confirms our fears and shows few buying orders below $30,000.
If price does not drop any further, $28,000 could be a yearly bottom. If not, we’ll see you in hell.
Let’s see how things are going in the altcoin world.
Weekly Altcoin
This week’s altcoin is HEX. Last week, it broke a new high as it went above $0.17.
As you can see in the chart above, all metrics look extremely good. First, the volume has spiked, showing a significant number of new buyers entering the space. Secondly, the VPVR shows immense support above $0.1, a critical level for HEX.
Finally, HEX/USDT is above all MMAs, and the 21-day EMA (blue), sign buyers are clearly in control.
There is not much to say except we think HEX/USDT will find support above $0.14 (blue box) and that it will soon enter price discovery mode.
Now, let’s take a look at $FEVR, RealFevr’s utility token.
FEVR/USD was launched last week, at PolkaStarter. Since the launch, FEVR has gained close to 1,000% in valuation, even after the recent dip that moved the coin below $0.005, for a brief period price. Adding to that, the total market cap is close to $160 million, according to CoinMarketCap, another magnificent milestone. At the peak, it reached over $200,000,000.
Another important metric is the number of hodlers. BSCscan shows there’s over 4,000 holders.
At the time of this writing, FEVR/USD’s 12-hour chart shows the cryptocurrency is trading above $0.0053, after reaching a top close to $0.016. Right now there’s a clear consolidation pattern forming, so we think it’s a nice time to accumulate.
While FEVR is below the 21-day EMA, we remain cautious. Nevertheless, volume remains above $1 million, an excellent sign.
If you need some fuel to keep you engaged with the project, check out RealFevr’s new website. It’s awesome.
Conclusion
BTC/USD has been consolidating for the past month. While bitcoin:
Remains below the 21-day EMA, 20-day, 50-day and 200-day MMA,
Continues to trade below its prior high around $64,000,
We think it’s a great time to accumulate more BTC. Once buying volume arrives at the market and bitcoin finds support above these critical levels, our confidence that the bull has returned and altcoins will start to pump back up will significantly increase.
Nevertheless, we think it’s still a great time to buy quality altcoins such as FEVR and HEX. Let’s see how the week progresses.
Safe trades.
CryptoNerds DAO Proposal 5: See Results!
Vote on the altcoin we’ll look at every week! This week, the winner was $FEVR.
It’s up to you what altcoin we pick next week. For more details, check this thread.
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