Bitcoin Likely Undervalued Below $63,000: Should Traders Wait For A Breakout?

Posted on August 15, 2024 by Dalmas Ngetich

Bitcoin is firm, per the developments in the daily chart. Admittedly, buyers have been resilient, but for the uptrend to continue, there needs to be a high volume push above the immediate local resistance. For now, conservative, risk-on traders can wait for a clean break in either direction before committing. If prices rise, closing above $63,000 and August 8 highs, Bitcoin might find the momentum to float above July highs.

As Bitcoin moves in a tight range, as is evident in the daily chart, its performance has been dull. This sideways movement means the coin is stable on the last week, but down nearly 5% in the previous day. Since there has been no clear breakout in either direction, participation is also low, at $32 billion amid the general indecision.

Traders are closely tracking the following Bitcoin news events:

Considering the sideways movement and the dump of the past few trading weeks, Bitcoin has been impacted. Fresh data shows that the monthly compound growth rate is negative 5%. Aggressive traders can take advantage of this undervaluation to buy on dips.
Another hint of possible undervaluation is shown by the short-term holder MVRV, which is now below 1. Whenever this metric shrinks below this level, prices tend to recover steadily afterward. Before engaging, traders can wait for a signal, ideally above $70,000.

Bitcoin Price Analysis

[[BTC/USD]] is within a bullish formation, following the uptick after the dump of August 5.

As it is, prices remain inside a buy zone, inside the $57,000 to $60,000 range, meaning buyers have a chance.

However, conservative traders have to stay on the sidelines until there is clarity.

Ideally, a close above $63,000 and August 8 may trigger demand. This, in turn, could set the foundation for Bitcoin to float back to $70,000.

However, if sellers are resilient and unrelenting, any drop below $56,500 and $50,000 cancels this bullish preview.

In that event, Bitcoin may crash to the $40,000 level.

Bitcoin Remains Weak As BTC Highs Keep getting Lower

Posted on August 14, 2024August 13, 2024 by Skerdian Meta

Bitcoin has been showing weakness since topping at record highs, and every time buyers push the price above 70K, they have difficulties keeping BTC there. Recently, BTC has been showing difficulties holding gains above 60K as well, as highs keep getting lower, which is another bearish signal, however, BTC sellers haven’t excelled either, failing to keep the price below 50K early last week.

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Bitcoin Moving Sideways: Time For Aggressive Bulls To Load And Target $72,000?

Posted on August 14, 2024 by Dalmas Ngetich

Bitcoin is moving sideways when writing. Although the uptrend remains, the current state of price action means traders must stay on the sidelines, waiting for clean signals. Technically, the uptrend remains. However, prices must first overcome $63,000 and, ideally, July 2024 high for this to print clearly. In that case, Bitcoin might find a solid base for a surge, perhaps cracking $72,000, lifted by improving market sentiment.

Bitcoin is steady when writing, and this shows in its performance in the past day. Looking at the daily chart, this is evident. Though the coin remains up roughly 20% from August 5 lows, it is stable in the past day but up nearly 7% in the previous week. While at it, the average trading volume remains muted, shrinking to $28 billion.

Traders are closely tracking the following trending Bitcoin news:

Even as the coin moves sideways with unusually low volatility, aggressive traders, on-chain data shows, are fast accumulating, taking advantage of the low prices. Whether this will support prices remains to be seen, but it is overly positive.
After the dump in June, when miners quickly unloaded their BTC holdings to the secondary market, their revenue is up. Their reserves remain low, a combination that will support prices in the coming days.

Bitcoin Price Analysis

[[BTC/USD]] is bullish even with current affairs.

The $60,000 round number is a level to watch.

However, what’s important for buyers is whether they can crack $63,000. This uptick might provide the impetus to lift the coin to $66,000 and even $70,000 in a buy trend continuation formation.

Even before this happens, aggressive buyers might load the dips above August lows.

This preview will, nonetheless, fast change should prices dump below $49,000, confirming the bears of early August 2024.

Ethereum Consolidating: Will ETH Dump Or Fly? Ceiling At $2,700

Posted on August 14, 2024 by Dalmas Ngetich

Ethereum is also capped at around $2,700, though buyers are upbeat, expecting prices to extend recent gains, even floating to $3,000. Though this is highly possible, the odds of ETH also contracting, aligning with the sell-off of early August, cannot be discounted. If anything, traders are closely tracking performance, aware that the complete unwinding of losses of August 4 and 5 might ignite demand. Traders are hopeful, looking at a retest of $3,500 and July highs. On the flip side, losses below August lows will be catastrophic for optimists.

The sideways chop is evident, looking at how Ethereum is performing in the past few trading days. With the local resistance at $2,700 and traders unwilling to push higher, ETH is stable in the past day. At the same time, it is up nearly 9% in the previous week. A concern amid this is the tepid participation at just $15 billion in the past 24 hours.

Traders are monitoring the following Ethereum news days:

Amid the proliferation of bot activity, one analyst thinks they are not all bad. Instead, they should not be seen in a bad light but as agents of liquidity and general stability. The only negative aspect of these tools is the deployment of malicious MEV bots.
Spot Ethereum ETFs continue to post outflows. By August 13, all nine issuers saw a combined outflow of over $32 million of ETH. Of them all, thousands of ETH are being redeemed from Grayscale’s ETHE.

Ethereum Price Analysis

[[ETH/USD]] is stable when writing.

Aggressive traders might choose to load the dip above $2,100, targeting $3,000 and $3,500 in the medium term.

Notice that prices are inside the August 8 bull bar, a positive from volume analysis perspective.

A close above $2,700 will confirm buyers of mid-last week, setting the base for another leg up above $2,800 and $3,000.

Conversely, losses below $2,100, reversing all August 8 gains, will confirm weakness, setting the stage for bears angling for $1,500 or lower.

XRP Up 12%: Is This the Start Of A Mega Rally To $1 or Better?

Posted on August 14, 2024 by Dalmas Ngetich

XRP is moving sideways but there are hints of strength, looking at trends over the last day. Admittedly, the bars of August 7 and 8 are critical. However, without buyers flowing in, prices will most likely continue consolidating inside a range. The uptrend, even with recent losses, remains, and risk-off traders can choose to load the dips above $0.50 and $0.55. Still, the conservative can wait for clean breaks in either direction before committing.

As XRP moves sideways, the coin remains within a tight range and is mostly stable at press time. Even so, it is up 12% in the previous week, though trading volume remains discouragingly low at about $1.3 billion. Until there are sharp gains, preferably above $0.66, participation might continue to be dismal.

Traders are watching the following trending Ripple and XRP news:

Even with the recent gains, XRP remains within a multi-year trade range. Analysts now expect a breakout in either direction. Considering gains in the past few weeks, a close above the resistance trend line could lift the coin to fresh highs.
The regulatory clarity following the end of the Ripple-SEC case means XRP would likely find massive adoption among payment processors. Ripple plans to be a leading digital asset infrastructure provider, and ODL remains one of its core solutions.

XRP Price Analysis

[[XRP/USD]] is bullish, looking at the daily chart.

There are hints of strength that need to be confirmed only when XRP rallies above July highs.

Still, since the uptrend is defined, every low within the August 7 and 8 may offer entries for buyers targeting 2024 highs.

The primary support zone is between $0.50 and $0.55.

Losses below this region cancel the preview, permitting sellers to push lower towards July 2024 lows of $0.40.

If buyers take over, XRP might surge strongly to as high as $1.

DOJ contemplates breaking up Google

Posted on August 14, 2024August 14, 2024 by Olumide Adesina

The U.S. judge’s ruling that the tech giant has a monopoly in the online search and text advertising markets has prompted the Department of Justice to consider divesting Google’s Android operating system, Chrome web browser, and AdWords ad sales platform.

Even in the absence of the divestitures, the government would probably try to have the “exclusive distribution agreements” that resulted in U.S. Google losing an Aug. ruling by District Judge Amit Mehta.

The government may also take less drastic measures to restore fairness to the market, such as compelling Google to share data with competitors and putting in place safeguards to prevent Google from obtaining an unfair edge in the expanding artificial intelligence space. For websites to appear in search results, Google requires them to grant permission for Google AI products to use their content.

Mandating Google to enhance its compatibility with other search engines or sell or license its data to competitors is an additional alternative. An official Google split would be the largest dismantling since AT&T in the 1980s, but Google intends to appeal the ruling.

An estimated 2.5 billion Android-powered devices are in use globally, Google paid businesses more than $26 billion to have their search engine appear as the default on devices and third-party browsers. Apple received the majority of those funds.

The Justice Department mandated in the 1950s that AT&T grant royalty-free patent licenses to end unfair competition. The historic Microsoft antitrust case was forced to provide free application programming interfaces to level the playing field.

Google has more than 100,000 channel partners worldwide. Rather than the ad networks that were the subject of the antitrust case, the majority of these partners work with Google’s cloud and data analytics offerings.

However, regulatory bodies closely monitor the big technology vendors’ transactions and the impact.

In July, a letter was published by the Competition and Markets Authority (CMA) of the United Kingdom indicating that it could “start an investigation” into an unusual agreement between Microsoft and AI startup Inflection, which led to Microsoft hiring the CEO and co-founder of Inflection.

Microsoft, OpenAI, Amazon, Google parent Alphabet, and Anthropic were required to submit information on their latest partnerships and investments,. Legal actions related to antitrust may still be forthcoming against Apple and Amazon.

Appetite for Bitcoin weak amid high volatility

Posted on August 13, 2024August 13, 2024 by Olumide Adesina

Bitcoin’s volatility has been elevated particularly this month. The crypto asset’s price fluctuation affirms a high uncertainty surrounding macroeconomic conditions, especially in light of comments made by the U.S. Fed official over the weekend.

Bitcoin tested the $57.8K level late last week before rising above 60K but trading below $59K on Tuesday. Traders speculate whether Bitcoin will revisit its August low of $49,248, particularly given the waning interest in long-term leveraged Bitcoin positions and the mounting possibility of a global stock market correction.

Risk appetite has dampened lately as JPMorgan economists increased the likelihood of a US economic recession in 2024 to 35%. The report identified two major factors: a restrictive policy by the Fed and weak labor market conditions.

Resistance for bitcoin has been established at the $62K, 61.8% Fibonacci retracement level, drawn from the swing high of $70K on July 29 to the low of $49,101 on August 5.

The broken trendline, the 100-day Exponential Moving Average at roughly $62,659, and the $62,066 level acting as resistance could lead to more selling pressure.
If the price doesn’t rise above $62,066, it can likely retest the $49,917 daily support level. The Awesome Oscillator and Relative Strength Index (RSI) on the daily chart, trading below their neutral levels of 0 and 50, respectively, indicating a strong bearish trend.

The labor market is still weak and inflation risks are present. Fed Governor Michelle Bowman, believes such a narrative lessens the chance of an interest rate cut in September. Investors are waiting for the August release of the US Producer Price Index in a holding pattern.

The Fed’s ability to meet market expectations of at least two rate cuts by the end of 2024 is anticipated to be revealed by these data points.

The moderation in excessive leverage in the market could be one reason for the current neutral sentiment. Given that both bulls and bears have liquidated more $650 million in Bitcoin futures, it is likely that the recent volatility has decreased demand for leverage. This, however, falls short of explaining why the open interest in Bitcoin futures is currently $28.8 billion.

However, CME data indicates that Bitcoin derivatives are becoming less dependent on retail trading. That is to say, even if Bitcoin’s volatility continues, there is no indication that traders will become more bearish or that excessive liquidation could lead to a series of sell-offs that could take the price down to $50K.

Forex Signals Brief August 13: UK Earnings and US PPI Inflation

Posted on August 13, 2024August 12, 2024 by Skerdian Meta

Yesterday, the economic calendar was relatively quiet, with risk sentiment turning negative due to escalating tensions between Israel and Iran, although gold continued to rise. A New York consumer survey revealed that while inflation expectations have remained stable over the past five years, the three-year outlook dropped by 0.6% to a record low of 2.3% since the survey began in 2013. These somewhat unusual results provided support for equities and boosted treasuries.

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XRP Finds Roadblock below $0.66, Millions Flowing To Ripple ETPs

Posted on August 13, 2024 by Dalmas Ngetich

XRP is steady and interest is soaring, looking at engagement in the past week of trading. Technically, buyers have a chance and may close above the immediate barriers in a buy trend continuation. However, what’s important in the next few days is the relief from the conclusion of the Ripple versus the United States SEC court case. After years, the court ruled that Ripple should pay $125 million as settlement, lifting sentiment.

So far, traders are closely monitoring the performance of crypto assets across the board, considering the positive correlation it has on XRP. Even after a 32% spike from August 2024 lows, traders are looking at $0.62. A close above this level could see XRP rip higher in a buy trend continuation. For now, the coin is stable on the last day, though trading volume is rising, reaching $1.3 billion in the past 24 hours.

Traders are closely monitoring the following trending XRP and Ripple news:

The United States SEC might not appeal the ruling made by the court, which would greatly boost Ripple and XRP. According to Ripple CEO, the company had spent nearly $150 million before last week’s settlement.
Coinshares report that inflows into the XRP ETPs soared by over 175% last week. So far, over $21 million has been invested into these complex derivatives. The more capital flows to XRP, the higher the probability of prices surging.

XRP Price Analysis

[[XRP/USD]] remains within a bullish formation.

The problem is that there is strong rejection at around July highs.

Still, following the uptick of August 7 and 8, every low within this range may offer entries for buyers.

So far, the local support is $0.55.

This level may be the base for buyers targeting $0.60 and $0.66.

If bulls flow back, a decisive break lifting XRP above $0.66 will be ideal. In that event, the coin can easily float to $0.74, if not $1, in a buy trend continuation formation.

Ethereum Consolidates: Will ETH Bulls Break Above $2,700?

Posted on August 13, 2024 by Dalmas Ngetich

Ethereum remains within a bearish formation, at least for now. Notice that the coin is still trending inside the bear bar of August 8. However, the higher highs posted over the last two days may ignite demand, lifting sentiment. A firm close above August 5 highs, at the back of rising volume, may be the base for another wave of buying pressure that may see Ethereum soar to multi-week highs. For now, the zone between $2,100 and $2,500 remains critical.

The sideways chop seen in Ethereum reflects how it has been performing in the past day and week. So far, the coin is stable but in the green over the last week, adding 6%. Even though there are pockets of strength, there must be a decisive close above the local liquidation level, as mentioned earlier. Trading volume must swell for this to happen and the leg up to remain. Should bulls take over, a close above $2,700 must exceed trading volume registered in the past day at around $21 billion.

Traders are closely monitoring the following Ethereum news:

Despite the market-wide sell-off and consolidation, on-chain data shows that whales have been accumulating. By the end of last week, they had bought over 750,000 ETH, a mark of confidence in what lies ahead.
The Ethereum ecosystem continues to scale, thanks to the proliferation of layer-2 protocols. Data shows that layer-2 platforms have scaled by a factor of 24X—a signal of adoption.

Ethereum Price Analysis

[[ETH/USD]] is consolidating, looking at the daily chart.

The bull bar of August 8 is crucial.

Every low may offer entries for aggressive traders targeting $3,000 and $3,300.

However, as mentioned earlier, traders can wait for a clean close above $2,700 on August 5 before committing.

On the flip side, any close below $2,200 and August 5 lows may signal weakness, forming the base for another leg down to $1,800.