Cryptocurrency market analysis and forecast
Here is our monthly cryptocurrency market analysis, looking back on the past few weeks and with our expectation for the coming month of market trends for the top three major cryptocurrencies ranked by their current prices. For this month’s analysis we tracked Bitcoin, Ethereum and Litecoin against the US dollar.
The big questions from this month’s market moves are:
· Are we about to see a strong bullish reversal in Bitcoin?
· Will there be a rebound for Ethereum going into September?
· How low will Litecoin fall before we see a reversal in crypto across the board?
You’ll get to hear our take on it right here. So, let’s get started.
BTC/USD
Market summary at Monday 6 August 2018
Current: $7,001.80 | Monthly-high: $8,349 | Monthly low: $6,134 | 3-week low: $6,950 | 24-Hour volume: $270m | 1-month per cent change: +6.09 per cent
Analysis
For the world’s most popular cryptocurrency pair, dollar prices on Monday 6 August continued to hover around its three-week low of $6,950. However, support continues to hold above its lowest low on Saturday 4 August of $6,801.52.
BTC is trading at $7,001.80, up 6.09 per cent from last month’s low of $6,134. Still, the BTC price is on a range-bound movement after the -16.76 per cent bearish drop from the month high of $8,349 on 24 July, with a 24-hour volume of $1,469,450 on the DSX Exchange.
Forecast
Price is likely to fall below $6,900 in the week starting 6 August from the moving averages. From there, a continued drop could bring Bitcoin price to a lower extension at $6,700 or the lowest extension at the channel support around $6,600. Further, there is the risk of a deeper pullback to February’s psychological support low of $6,000 by the end of August.
The recent increase in volatility shows a sign of bearish exhaustion. Following this month’s bearish retrace, an optimistic outlook could see the possibility of a strong bullish reversal going into September, with prices rising back near $10,000 and a continued upward trend through the end of 2018.
ETH/USD
Market summary at Monday 6 August 2018
Current: $405.52 | Monthly-high: $495.19 | Monthly low: $404.79| DSX monthly high 24-hour volume: $289,900 | Overall market avg 24-hour volume $90,717,215 |1-month per cent change: -12 per cent
Analysis
The second most popular trading pair ended the month bearish, following the trend of most other major cryptocurrencies. However, Ethereum spent most of the month trading within range but bullish above July’s early low of $428.02. ETH/USD saw a high at $495.19 on 17 July, with support holding strong at a mid-month $443.76 low until the last day closing the month at $434.32. During the bullish period in July, the DSX Exchange 24-hour trade volume was up as high as $611,404.
Forecast
As of 6 August, ETH/USD was trading along the bearish 90-day trend line after an 11.46 per cent drop from the previous Monday’s close of $458. With the Ethereum price now at $405.52, just above the lowest low of $404.79 on 4 August, we can expect the bullish trend to continue through August. And there will be hopes of a rebound going into September but so far there are no indications of that being likely to happen.
LTC/USD
Market summary at Monday 6 August 2018
Current: $74.32 | Monthly-high: $88.85 | Monthly low: $72.89 | DSX monthly high 24-hour volume: $103,110 | Overall market avg 24-hour volume: $15,881,266 | 1-month per cent change: -8.5 per cent
Analysis
This trading pair continues along a bearish 90-day trend, dropping 8.5 per cent from the same day last month. The LTC/USD 30-day trend is very similar to Ethereum over the month but peaked stronger at $88.85 on 17 July and then again one week later on 24 July, before dropping over the next two weeks by a staggering 18 per cent to $72.89 by the close on 4 August. That’s an all-time low on the DSX Exchange, which has seen Litecoin 24-hour trading volumes above $50,000 in 10 out of the last 30 days, peaking at $103,110 on 18 July.
Forecast
Bearish moving averages suggest LTC will continue to drop to $60 by the end of August, with further supportive pullout risking lows down to $50. Some are predicting a reversal in cryptos across the board, but right now a bitcoin surge leading the way would be the only indication for that kind of reversal.
Disclaimer
This market analysis article by DSX does not offer investment advice and nothing in it should be construed as investment advice. You should carry out your own independent research and verification of facts and data before making any investment decision. If you are unsure of any investment decision you should seek a professional financial advisor. We do not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of reading any of the market analysis and predictions in this article.
