Over the past two weeks, the cryptocurrency market has experienced fairly strong growth, but starting from Monday, July 30, capitalization of the stock market began to fall. As a result, its value declined from $295 billion to $257 billion While the minimum value for this period was recorded 5 Aug — $250 billion in market Structure remained unchanged, still more than half of the market capitalization account for bitcoin (47,41%) and Ethereum (16,17%).
Bitcoin for the period of the last week was in a downtrend and has dropped in price by almost 13% (from $8142 up to $7000). Continuous downward price movement has broken the support level at $7710,34 — $7428,95, and then settled under the support in the form of long-term trend line. At the moment (August 6) it tests $6856,59-7000.
In the case of the price fixing below the support level of $6856,59 downward movement will be continued to around $5764,57. During this movement the RSI will reach its minimum value, after which it can again begin an upward trend.
If you stretch the Fibonacci grid from the previous upward movement, we can see that the price konsolidiruyutsya on the level of 61.8%.
This level is the default value for a corrective movement. Persistence below it (the 61.8% is comparable to the $6820,49) will strengthen bearish on the market. Otherwise, the price will beat off from this level and continue the upward trend, breaking the resistance of the trend line.
The last frontier for the strengthening of the downward trend will be a break of the support level of $5764,57.
Ethereum
The price of Ethereum fell to the support level of $406,64-432,08 and is currently testing a $406,64, in the case of consolidation under which the price out of the sideways channel of $515,40-406,64 and strengthen downward movement.
Such downward movement can last to around $359,00, where re-start the consolidation of the market. Given the fact that the RSI is close to 30, it would be logical formation from the indicated support level of $359,00 upward movement with a consistent strengthen in the break of the resistance levels: $406,64-432,08, $486,02-515,40.
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Egor Tishin, an analyst at TSI Analytics
The review reflects the subjective position of the analyst-partners Coinspot subject to personal trading style. Trading operations with cryptocurrency are increased risks due to the nature of the market. The editors are not responsible for your trading decisions and recommends trading only to those funds, the loss of which will not be critical.
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