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Weekly Crypto Market Brief

Bitcoin has continued its downward trend over the past two weeks, falling below the bottom trendline of what appears to be a rising wedge on the daily chart, and holding it as resistance. There is extreme fear in the market, as reflected by the bearish distribution pattern on the Crypto Fear & Greed Index plot as a function of time. The accumulation period for Bitcoin and the cryptocurrency market continues in the current bear market, which is characterized by difficult global market conditions and poor overall performances in the equity and crypto markets.

Avalanche (AVAX) has been on a steep downtrend in recent weeks, falling by 42% from the $30 level on August 14 to a local bottom of $17.5 on August 29, 2022, before consolidating above the $19 support level. It fell below the 200 MA on the 1h and 4h charts during its descent, while holding the level on the former as resistance. Losing the $18 support would spell potential danger for the token, as it would expose the $14 and $16 levels in what would be a continuation of the bearish trend for Avalanche.

Polygon (MATIC) has been one of the better performers in the cryptocurrency market. It has held well above the $0.76 support level, after falling from its local top of $1.05 per token, reached on August 14, 2022. In its recent drop, it fell through the 200 MA on the 4h chart, and will seek to reclaim this level if it were to revert to a bullish move in the coming few weeks. Breaking the $0.83-0.85 resistance zone would be a first step to achieve should the trend be reversed to the upside.

Decentraland (MANA) had been forming a distribution pattern in the first half of August 2022, before falling and breaking successive supports at $0.96, $0.87 and $0.80 and holding the latter as resistance. Its drop from the $1.13 local top on August 14 was a significant one, as it is now trading at the level of its recent lows, while holding the 200 MA on the 1h chart as resistance. Admittedly, it has held well above the $0.75 support level, yet it would need to break upwards past the $0.80 support-turned-resistance in order to boost its chances of a revival in the current market.

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