Key Findings:
- Bitcoin (BTC) is on track for a fourth weekly surge in six weeks, with the total crypto market cap targeting a sixth straight weekly surge.
- US economic indicators and a shift in investor outlook toward the Fed’s September policy decision provided support for riskier assets.
- The sentiment shift was reflected in BTC, ADA, ETH, MATIC, and SAND technical indicators, suggesting a continuation of the uptrend.
For the week ending August 14, total crypto market cap is targeted for a sixth straight weekly increase. The current upleg could also support a second straight monthly rise. From Monday to Sunday morning, the crypto market cap increased by $79 billion to $1,154 billion.
Crypto Market Cap 140822 weekly chart
Recent news updates from the crypto network have put multiple coins back in the spotlight. While Ethereum (ETH) merge updates have continued to take center stage, other updates have highlighted an increase in activity across the digital asset space.
Coins to keep an eye on over the coming week include Cardano (ADA), Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC) and The Sandbox (SAND).
Along with more network updates, the US economic calendar will continue to set the tone. US Industrial Production (Tue), Retail Sales (Wed), Philly Fed Manufacturing Index (Thu) and Unemployment Claims (Thu) are the key stats of the week.
Following better than expected services sector NFP and PMI numbers, another set of positive indicators could fuel bets on a more aggressive rate hike in September. While inflation moderated to 8.5% in July, inflation is well above the Fed’s target. Favorable economic and labor market conditions could allow the Fed to make another rate hike of 75 basis points or more.
Therefore, Wednesday’s FOMC meeting minutes will have a significant impact on riskier assets.
We expect the NASDAQ 100 to continue to whet the appetite for BTC and the broader market.
NASDAQ – Crypto Market Cap – 140822 Daily Chart
Bitcoin (BTC)
This week, from Monday to Sunday morning, Bitcoin (BTC) is up 5.72% to $24,505. A mixed start to the week saw BTC fall to Wednesday’s lows of $22,675 before making a move. BTC found support from weaker US inflation numbers, hitting a high of $24,896 on Thursday before retreating.
BTC reacted to US economic indicators and sentiment towards Fed monetary policy. Reflecting investor optimism, the Bitcoin Fear & Greed Index rose from 30/100 on Sept. 7 to 46/100 on Sunday morning.
Bitcoin Fear & Greed Index – 140822
Looking at trends, a BTC move through the August high of $24,896 to $25,000 would support a surge to the June high of $31,956. From $31,956, a move above $35,000 would take the May high of $40,004.
However, a drop below $20,000 would give the bears a look at the current year low of $17,601.
BTCUSD 140822 daily chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bullish signal. Bitcoin was above the 50-day EMA this morning, currently at $23,878.
The 50-day EMA retreated from the 100-day EMA, with the 100-day EMA extending from the 200-day EMA, providing BTC bullish signals.
Another 50-day EMA widening from the 100-day EMA would support a return to $25,000 to give BTC a glimpse of $30,000.
However, BTC would need to sustain above the 50-day EMA to avoid the 100-day EMA currently at $23,468 and a return below $23,000.
BTCUSD 140822 4 hour chart
Cardano (ADA)
This week, from Monday to Sunday morning, ADA is up 10.75% to $0.5843.
ADA tracked the broader market, falling to a Wednesday low of $0.5023 before hitting a Sunday high of $0.5859. While the latest US economic indicators found support, the network news updates were also ADA positive. News of progress towards the delayed Vasil hard fork provided ADA support.
Looking at the trends, a return to $0.60 would give the bulls a run to the June high of $0.6688. From $0.6688, ADA would have free run to the May high of $0.9047 to target $1.00.
A drop below $0.50 would give the bears a look at the June low of $0.4026 and the current year low of $0.3919.
ADAUSD 140822 daily chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bullish signal. ADA is above the 50-day EMA currently at $0.5336.
The 50-day EMA moved away from the 100-day EMA and the 100-day EMA moved away from the 200-day EMA, both ADA bullish price signals.
Avoiding a pullback through the 50-day EMA would further support the uptrend that formed after testing the support at the 50-day EMA on August 12th.
However, a break of the 50-day EMA could bring the 100-day EMA into play, which currently stands at $0.5222.
ADAUSD 140822 4 hour chart
Ethereum (ETH)
This week, from Monday to Sunday, ETH is up 16.64% to $1,984.
A bearish start to the week took ETH to a Wednesday low of $1,657 before hitting a high of $2,020 on Saturday. While broader crypto market sentiment offered support, merge updates propelled ETH to $2,000 for the first time since May 31.
Looking at trends, a move through this week’s high of $2,020 would support a run to the May high of $2,968. ETH would need a lot of support to break out of the psychological resistance level at $2,500. A return to $3,000 would then give ETH free rein to the April high of $3,581.
A drop through $1,750 to the weekly low of $1,675 would see the bears target $1,500 before a rally.
ETHUSD 140822 daily chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bullish signal on Sunday. ETH is above the 50-day EMA, currently at $1,835.
The 50-day EMA moved away from the 100-day EMA and the 100-day EMA moved away from the 200-day EMA, both bullish ETH price signals.
Avoiding a decline through the 50-day EMA would further support the uptrend formed after the August 10 breakout from the 50-day EMA.
However, a break through the 50-day EMA might put the 100-day EMA in sight, which currently stands at $1,740.
ETHUSD 140822 4 hour chart
Polygon (MATIC)
This week, from Monday to Sunday morning, MATIC is up 12.67% to $1.022
A bearish start to the week saw MATIC fall to a Wednesday low of $0.8713 before recovering to a Sunday high of $1.045. Polygon network updates provided another bullish week. The number of dapps on Polygon is reportedly up 400% year-to-date. Sentiment towards Polygon has been bullish since Disney (DIS) announced and launched Polygon ID.
Looking at trends, a return to $1.50 would support a rally to the May highs of $1.187 and $1.20. From $1.20, MATIC would have free rein to the April high of $1.729.
However, a MATIC drop below $0.90 would give the bears a look at the weekly low of $0.870 and the August low of $0.8494.
MATICUSD 140822 daily chart
Looking at the EMAs and the 4-hour candlestick chart (below), this was a bullish signal on Sunday. MATIC is above the 50-day EMA, currently at $0.9397.
The 50-day EMA moved away from the 100-day EMA and the 100-day EMA moved away from the 200-day EMA, both bullish MATIC price signals.
After the August 12 breakout of the 50-day EMA, further extension of the 50-day EMA from the 100-day EMA would further support the uptrend.
However, a break of the 50-day EMA might put the 100-day EMA in sight, which is currently at $0.9118 and below $0.90.
MATICUSD 140822 4 hour chart
The sandbox (SAND)
From Monday to Sunday morning, SAND is up a modest 1.82% to $1.343. Range bound all week, SAND surged to a Monday high of $1.391 before falling to a low of $1.258 before stabilizing.
There were no updates or major Metaverse news to affect. Due to a lack of sensitivity to US economic indicators, SAND underperformed the broader market, which could put SAND in the spotlight from investors looking for crypto laggards.
Looking at trends, a break from the July high of $1.545 would give SAND free rein to the May high of $2.456. However, SAND needs to return to the $2.00 handle to avoid a reversal. A pullback to the July low of $1.007 could see SAND pull back towards the June year-to-date low of $0.7322.
SANDUSD 140822 daily chart
Looking at the 4-hour chart and the EMAs, the signal was bullish. SAND is above the 50-day EMA currently at $1.3247.
The 50-day EMA retreated from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, both positive SAND indicators.
After the breakout of the 50-day EMA, further extension of the 50-day EMA from the 100-day EMA would support a breakout from the July high of $1.545 to target $2.00.
However, a break through the 50-day EMA would put the 100-day EMA, currently at $1.3152, and the 200-day EMA ($1.2894) in sight. A break of the 200-day EMA could signal a short-term bullish trend reversal.
SANDUSD 140822 4 hour chart
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