Weekly Crypto Market Brief

Since the end of July 2022, Bitcoin has formed a distribution pattern on the daily time frame, hovering above the support level at $22.5k, before emphatically breaking below it on August 19, 2022, and subsequently holding the $21k level as support. The Crypto Fear and Greed Index subsequently fell below the 30 level for the first time since late July, a testament to the fear that has gripped the market since the recent price fall. Crucially, Bitcoin seems to be holding above what is the upward sloping trendline representing the support zone of the bear flag, and needs to maintain that level of support to avoid a further move to the downside.

Solana (SOL) got significantly impacted by Bitcoin’s price fall over the past ten days, as it fell from a local top of $47.9 on August 13 to a local bottom of $34.5 on August 20, before consolidating above the $34 support level. The drop represents a 28% price fall, a significant figure considering that Solana has remained in the accumulation phase on the macro scale. It will now seek to regain the 200 MA on the 4h chart, after it fell through this level on August 17 and retested it as resistance the following day.

In similar fashion, Chainlink (LINK) dropped significantly in light of the cryptocurrency market fall. It registered a local top of $9.5 per token on August 12, 2022, and fell by 29% to a low of $6.7 per token on August 20, 2022. In doing so, it fell below the 200 MA on the 4h chart for the first time in the month of August. Buyers stepped in strongly at the $6.7 level, and have been successfully keeping the price above this support over the past few days.

Shiba Inu (SHIB) experienced an interesting turn of events over the past few weeks. After consolidating and holding the $0.000013 level as resistance between late July and August 13, 2022, Shiba Inu broke past the resistance in emphatic fashion the very next day, hitting the 200 MA on the daily chart at the $0.000018 level, forming a large candle in the process. This move was a culmination of the inverse head-and-shoulders pattern it had formed after its price collapse in early May 2022. Since August 14, 2022, Shiba Inu corrected back to the $0.000013 level, this time holding it as significant support.

Related Posts