Weekly crypto-market analysis from Geco.one 09.08.2021
Bitcoin was again above $ 42,000. Breaking this resistance signals an attempt to take control of the market by the bulls, which in the medium term may indicate a potential for further appreciation of BTC. If this happens, perhaps this year, the price of the oldest virtual currency will exceed $ 65,000, thus establishing a new ATH.
Looking at the quotations of the oldest virtual currencies, we notice that the BTC price has increased since July 20th by almost $ 16,000, which was nearly 55 per cent. Such a significant appreciation contributed to breaking above $ 42,000, thanks to which the BTC rate was at the highest level since mid-May this year.
However, these increases stopped around $ 45,000, where a slight supply reaction appeared last Sunday. If only the declines have been taking place since then, we could expect a re-test of the recently defeated resistance (now support) around $ 42,000 in the near future.
However, if there is a demand response around this support, bitcoin will have a good chance of returning to increases, for which the agricultural range seems to be around $ 48,000, or even $ 60,000.
One cannot rule out that as long as this appreciation continues, BTC will establish a new ATH before the end of 2021.
Noticeable increases have also been seen recently on the Ethereum quotes, the price of which increased by as much as 85%. As a result of such appreciation, several significant resistance levels were, of course, overcome, the most important of which were $ 2,350, $ 2,600 and $ 2,900.
This trend stopped only around $ 3,200, where there was a slight supply response last Sunday. As a result of the declines that have continued since then, the ETH price has already slipped to the area of the previous defeated resistance (now support), i.e. $ 2,900.
However, considering that there has not been any significant demand response so far in the vicinity of this support, One cannot rule out that the declines will continue in the near future. If that happened, the ETH price could drop to around $ 2,600 and measure 38.2 per cent — Fibonacci corrections from an earlier upward move.
Litecoin quotes are now also in the area of local support, which yesterday rebounded from the resistance of $ 157. Currently, the market is re-testing the previously defeated resistance (now support) of $ 147 and measuring 50% — Fibonacci corrections from an earlier upward move.
If only this zone is rejected, the price of LTC could return to increases, for which the actual ranges seem to be around $ 180, $ 200, or even $ 216.
Looking at the LINK quotes, we can see that the price of this cryptocurrency has recently increased by almost 88%. As a result of such a significant appreciation, a highly substantial resistance of $ 20 was overcome. This tendency stopped only in the region of $ 25, where there was a slight supply response on Sunday.
If only the declines continue, we could expect a re-test of the previously defeated resistance (now support) for $ 20 in the near future. However, taking into account that this level coincides with the measurement of 50 per cent. Fibonacci correction from the earlier upward impulse, it seems highly probable that these declines will turn out to be only a correction, and in the vicinity of the mentioned zone, there will again be a greater demand response initiating another upward movement.