Bitcoin, Ethereum, and Dogecoin daily chart analysis for August 12, 2021.
Bitcoin chart analysis
Looking at the chart of Bitcoin on the daily time frame, we see that the price continues to consolidate at the 200 daily moving average from the bottom to $ 45,000 and 50.0% Fibonacci level to $ 47,000 from the top. The situation is still undecided, and we have to wait for the price to make a stronger move on the chart. To continue the bullish trend, we need a break above the 50.0% Fibonacci level and a jump to $ 48,000. The price has room to consolidate above the 50.0% level and continue further towards the 61.8% Fibonacci level to $ 51,250. For the bearish trend, we need a drop below the 200-day moving average to increase bearish pressure and direct the price towards 38.2% Fibonacci level to $ 42,660. If that Fibonacci level doesn’t hold up, we go down to 23.6% Fibonacci level to $ 37345.
Ethereum chart analysis
Looking at the daily time frame chart of Ethereum, we see that the price consolidates around $ 3150 and that our current obstacle is $ 3200. Consolidation is still above the 50.0% Fibonacci level at $ 3035, and he favors giving us some support. Further positive consolidation may raise the price to 61.8% Fibonacci level to $ 3353, where the next resistance awaits us if the price manages to rise to those levels. For the bearish scenario, we need a price withdrawal below 50.0% Fibonacci levels. A further drop brought us down to the lower Fibonacci level of 38.2% to $ 2720. Looking at moving averages, we see that if the price goes down to the 38.2% level, we will encounter a 20-day moving average that can be potential support.
Dogecoin chart analysis
Looking at Dogecoin on a daily time frame, we see that we are in a bullish trend in August and are now testing a zone around 0.30000. By setting the Fibonacci level, we see that we encountered resistance at the 23.6% first level at 0.29645. To continue bullish, we need to jump above this resistance zone to continue towards the next Fibonacci level at 38.2% at 0.38110. Looking at moving averages, they are all on the bullish side and give us extra support for a potential move to higher levels on the chart. For the bearish trend, we need a further weakening of the price below the resistance to 0.30000, where we then again turn to support at 0.25000, and we look for additional support in moving averages.
The cryptocurrency market is having an excellent week, and on the penultimate working day of the week, the total capitalization of digital coins is approaching 2 billion dollars. The last time the crypto market approached these values was in April. That was after Bitcoin reached a historical maximum of 65 thousand dollars.
Such dynamics resonated in the spring with the situation at the beginning of 2018, when bitcoin had already reached its peak at 20 thousand dollars. Still, the momentum in altcoins was so strong that it confidently increased the total capitalization.
Over the past 7 days, Bitcoin has added 16% and is trading around $ 46,000. The bitcoin dominance index continues to decline gradually and is currently below 45%. As a result, the crypto market’s capitalization without bitcoin has exceeded $ 1 trillion, which is a psychologically important level for many enthusiasts.
One of the main events on the crypto market was the robbery of the computer network Poly Network for more than 600 million dollars. This is the biggest hacker attack in the history of the crypto market. An important characteristic feature of current hacking is the return of funds by hackers. It is unknown whether the hacker will return all the money, but he has already returned about 400 million dollars. It is difficult to say what he is guided by: the pressure of big crypto players, the impossibility of withdrawal, and the legalization of so much capital or hacker ethics. The hacker said that he had already “written his name in history.”
In this case, everything could end well. Still, the precedent itself reminds all market participants of the vulnerability to hacker attacks, which contributes to regulators to more strongly “protect the interests of investors” through new restrictions.
- Trading Instrument
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.