Market
picture
Bitcoin has
stopped falling but has still not managed to gain strength to rise, remaining
near $20K. Ethereum remains more interesting for buyers, increasing 1.6%
overnight to above $1600. Top altcoins showed mixed dynamics: from a decline of
1.3% (Dogecoin) to a rise of 2.2% (Cardano).
Total crypto
market capitalisation, according to CoinMarketCap, rose 0.2% overnight to
$997bn. The Cryptocurrency Fear & Greed Index fell 4 points to 23 by
Wednesday and moved into “extreme fear” status.
The upcoming
move to proof-of-stake creates a speculative component to Ethereum’s dynamics.
While in the short term, after September 6, there could be a
“sell-through,” causing pressure on the price, in the longer term, such
a transition will strengthen interest in using Ethereum for transactions,
making them cheaper. This promises more interest in the coin, allowing it to
remain “better than the market”.
On the data
analysis side, ETHUSD is trying to get back above the 50-day average, which is
an informal indicator of the medium-term trend. A consolidation above $1620,
like in July, could be a prolonged rally with possible targets at $2000-2200 in
the nearest future. The opposite is also true. A reversal down from this level
will weaken bulls, as it did in February and April, triggering a new decline
towards $1000.
News
background
Some 5,000
BTCs, which have been in “hibernation” for the past 7-9 years, are on
the move, said Look Into Bitcoin founder Philip Swift, citing data from the
Whale Shadows indicator. Historically, such spikes in activity have preceded
significant price declines.
A link has
been established between the 10,000 BTC, which on August 29 went in motion for
the first time since 2013, and the bankrupt cryptocurrency exchange Mt.Gox, a
Telegram channel reported.
Meanwhile,
the US Federal Bureau of Investigation has advised investors to be wary of
investing in decentralised finance (DeFi) projects as they are too vulnerable
to hacking.
Iranian
authorities have approved a comprehensive law regulating cryptocurrency
transactions. In particular, imports from abroad with payment in digital assets
are allowed.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.