Crypto Back On Track
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Crypto Market Recovers From Pull-Back
After a much needed pull-back from the yearly market cap high, we begin to revisit previous levels. Just this month we’ve seen a slight retracement of bitcoin price going from $12,391 to a low $11,191. Many expected more of a downwards action before the bull-run continued towards its trajectory but this can very well be enough. The crypto market as a whole has recovered faster than bitcoin. It’s yearly-high was $393 billion at its peak and is currently $391 billion. This is due to DeFi pushing altcoins up while making gas prices reach an exuberant 300 Wei.
Bitcoin seems to be under-performing when not only compared to other cryptos but when compared to traditional assets as well. The S&P 500 has passed bitcoin’s gains with its 7.25% August increase.
Bitcoin is having a difficult time passing its 12,400 resistance, mainly hovering around the $11,100 to $11,800 range. It’s possible that investors have been rotating out of bitcoin and into DeFi related tokens.
As for the market’s near-term future, it seems as if negative-yielding government bonds are expected to continue pumping both gold and bitcoin gains. Bitcoin is still down 40% from its all-time-highs, making it undervalued compared to U.S. stocks. A potential stock market correction still posses a downside risk to bitcoin. We’ll soon see how bitcoin reacts.
ETH’s $500 Barrier
Unlike bitcoin, ether has experienced massive movement having one of the biggest surges in the past 18 months. Its price level went from $220 to $445 in just the past five weeks. This movement is being halted around the $500 level. Ether yet has to break this resistance level. We’re seeing that it’s moving above the 100-day and 200-day moving average which is a great long-term bullish indicator.
As long as ether maintains support around $396-$410 we can expect further continuation for the upwards trend. Steadily hitting $445 can create great sentiment for $500 ether. If ether fails to maintain a support level of $360 then we will have to retest $310-$320 as the new support level.