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WMA: Bitcoin sees a 4-day decline, altcoins bleed lightly and the DeFi craze carries on
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $362 billion.
- Bitcoin did a false jump over the $12k hedge only to drop right back to $11,600
- Ethereum loses momentum and drops below $400
- XRP started the week trading around $0.32 but finished slightly above $0.28
- The DeFi boom attracts more attention to the crypto market as Google searches for cryptocurrency reach a 2-year record high.
Crypto Trends 17th – 23rd of August 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market lost almost $10 billion in market cap in the last seven days. It was an eventful week for Bitcoin and the pursuing altcoins, as it was for the emerging DeFi market that sees staggering increases in value.
Bitcoin had another seesaw week of highs and lows. It started the week in a cheerful mood, and Tuesday, it leaped over the $12k resistance level, managing to stay around $12,400 for a few good hours. The investors were ecstatic as the $12,000 level is where BTC fizzled out during the 2019 bull market.
Unfortunately, the surge did not last for too long, and the bulls were forced to retreat below $12k. Then, for four days straight, Bitcoin traded mostly in the red. It reached as low as $11,400 on Saturday. Many were fearful that this downtrend would take away the previous weeks’ impressive progress and shoot BTC below the support level at $10,500.
As of Sunday morning, Bitcoin is showing signs of recovery, and it is now trading at $11,630 after a 0.35% increase in value. If the bulls can regroup, they will find fresh new resistance levels at $11,800 and $12,000. Otherwise, the nearest support level stands at $11,300.
August 2020 has been one of the best months for Ethereum in years. The second-largest crypto by market cap had an impressive run, often rising above $430. This week, it seemed that ETH would surge even higher as it was trading at $439 on Tuesday morning.
Sadly, Bitcoin’s slip managed to drag most of the ensuing altcoins down the same slope as well, and Ethereum was not an exception. Its value steadily decreased until it fell below the psychological $400 level and reached a disappointing low at $382 on Saturday. At the moment, Ethereum is trying to get back in the saddle, and it is trading at $392. The next resistance levels lie at $400 and $409, while the closest support safe net stands at $382.
Ripple’s XRP is another altcoin that has been enjoying a fruitful summer so far. It started the week trading vigorously at $0.321, but then it dropped points as almost the entire market started trading in the red. On Saturday, it reached a critical low point at $0.27, but it quickly got back on track thanks to a mild push from the bulls. XRP is now trading at $0.283 and aiming for the next resistance level at $0.3.
Elsewhere, Chainlink witnessed a sudden stop in its impressive August surge, and subsequently, a 14% price drop saw it lose its solid trading position at $19.60. It is now trading at $15.68, and a recent 5% increase in value means that we may not have seen the last of Chainlink’s thirst for glory.
Elsewhere, the DeFi mania is on a relentless rise. According to this report, the industry has managed to garner no less than $6.7 billion in value locked. Its remarkable ascent is beneficial not only for the emerging DeFi niche but for the whole crypto market. A recent Google Trends report shows that the search query “buy crypto” has reached its highest point since the beginning of 2018.
What’s in the News?
- The U.S. Government’s acting Comptroller of the Currency allows banks in the country to offer cryptocurrency custody services and says cryptocurrencies can no longer be ignored.
- Binance’s system traffic recorded an all-time high similar to that of 2017 when Bitcoin was exploding.
- India ranks second in blockchain wallet transactions.
Next Week’s Market Forecast
The last week of August should be an interesting one. All eyes will be on the bulls and their attempt to take Bitcoin past the $12,000 resistance level and keep it there. Such a feat should see most of the altcoins explode as well, with Ethereum, XRP, and Chainlink in contention for the unofficial “climber of the week” prize.