- Bitcoin (BTC) took out the $10,000 level for the first time in 6 weeks.
- Ethereum (ETH) and BTC prices surpassed long-term resistance.
Market Trends This Week
Last week, Ethereum (ETH) took a leadership position breaking-out of the recent low volatility period evident in many major cryptocurrencies. This week, Bitcoin (BTC) followed suit and convincingly broke out of a 12-week consolidation. BTC had attempted to break out six weeks ago but failed. Though BTC investors witnessed what is known as “bull trap,” prices ceded little ground and held support. The current breakout is different in that both price and volume have seen rapid expansion, suggesting higher odds of staying power.
Tuesday, the U.S Federal Reserve convened. Chairman Jerome Powell showed little signs of abandoning his “Dovish” stance on interest rates by saying, “You should not expect the Fed will cut back on its emergency facilities for a very long time.” Gold and silver, which have been on a tear recently traded in a volatile manner before giving up short lived gains. Meanwhile, the initial impact on crypto seemed to be limited.
This Week’s Topics
- DeFi (decentralized finance) saw the highest transaction volume ever in July.
- Messari says that the Ethereum (ETH) ecosystem exceeds $50 billion.
- Ethereum (ETH) mining revenue up 80% in one month.
- China aims to be the dominant infrastructure provider for the blockchain.
Next Week’s Market Forecast
Next week, cryptocurrency investors will watch to see how the Bitcoin (BTC) break out holds. The $10,000 area will be the critical level.
Meanwhile, the Ethereum (ETH) breakout has been unquestionable. ETH is now well above $250 break out zone. Bulls will want to see price digest.