Bitcoin, Ethereum, and Dogecoin in the Pullback Market

Looking at the chart on the daily time frame, we see that the price of Bitcoin has not managed to break the barrier to 61.8% Fibonacci level at $ 51,250 for a week now. We are currently down at $ 47,600, testing a 20-day moving average along with a 50.0% Fibonacci level at $ 46,950. To continue the bullish trend, we need a new rejection. Moreover, we need to direct the price towards a 61.8% Fibonacci level, while for the bearish trend, we need to go below this support zone where we have a 200-day moving average of $ 46,000. Further below, we are looking for the next support at 38.2% Fibonacci level at $ 42660.

Ethereum Chart Analysis

Looking at the chart on the daily time frame, we see that the price of Ethereum fails to cross the barrier at 61.8% Fibonacci level at $ 3360. After that, we see that the price makes a pullback at 50.0% Fibonacci level at $ 3040. Additional negative pressure is exerted on the price and the 20-day moving average. If we see a further price drop below the 50.0% level, then we can expect the price to drop to 38.2% Fibonacci level at $ 2730.

Dogecoin Chart Analysis

Looking at the chart on the daily time frame, we see that today we continue on the bearish side after yesterday’s consolidation. The price of Dogecoin is currently testing at a 38.2% Fibonacci level at 0.27100. The 20-day moving average is now on the bearish side. Thus, directing us towards the 50-day and 200-day moving average in the zone around 0.25000. Below on that level, we can expect stronger support and the continuation of the bullish trend.

Market Overview

Growing network difficulties faced adjusted twice with 14.4964 T on 31 July and 15.5561 T earlier this month, 13 August. The steady rise in mining difficulties has shown a gradual increase in the computing power connected to the Bitcoin network following a major disruption due to China’s suppression of mining activities.
Mining difficulties, an indicator of how difficult or easy it is to generate new Bitcoin, are often affected by the number of machines connected to the network. The more devices work on solving block puzzles, the harder it is and vice versa. The Chinese offset connected a record number of miners offline, forcing difficulties to adjust themselves.
For bitcoin miners operating from regions other than China, reduced mining difficulties are good news. They reduce the effort required to create new bitcoins as a reward for helping maintain the network.
The difficulties in mining are still below the ban before China. The whole engagement has proved more cost-effective to those currently engaged in the business. With a two-month adjustment to mining difficulties, the attractiveness of the whole venture may diminish. This is true as more miners find a home in regions like Canada, Kazakhstan, the United States, and other growing hotspots for bitcoin mining around the world.
Bitcoin reacts negatively to the increase in difficulty as it is currently trading at $ 47,019.63 on top of a 0.77% loss in the last 24 hours, according to data from CoinMarketCap.
Whales are moving huge amounts of Ethereum (ETH) as instability in crypto markets grows.
Large owners of the second-largest crypto-asset transferred more than $ 500 million to ETH through 13 separate transactions on Tuesday and Wednesday.

Conclusion

Among the largest single transactions of Ethereum kits is a transfer of 28,272 ETH, worth more than $ 90.8 million. The cryptocurrency was sent from one unidentified wallet to another. This is data according to crypto tracker Whale Alert. Two minutes later, the same sending wallet sent another 28,272 ETH to a third unknown wallet.
A similar sequence of events occurred when the wallet sent 27,425 ETH worth more than $ 88.1 million into an unknown wallet. The mailing address then sent approximately the same amount to another unknown wallet in another transaction.
In addition, crypto exchange Kraken on Wednesday released seven separate ETH transactions on one unknown wallet over a two-minute period. The Kraken sent exactly 3,200 ETH worth more than $ 10.2 million each time, for a total of 22,400 ETH worth more than $ 71 million.
Other significant transactions include the Gemini exchange sends 10,000 ETHs worth more than $ 32 million to the Binance exchange. The Bithumb exchange sends 12,000 ETHs worth nearly $ 38.6 million to an unknown address. The second-largest crypto asset by market capitalization grew 3.6% per week and 41.1% per month.