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Weekly Cryptocurrency Market Brief

The cryptocurrency market has stabilized over the past week. Bitcoin has fluctuated in the $33-41k range, as it readies itself for the next big move. The Bitcoin Fear and Greed Index is at extremely low levels in the 10-20 range, reflecting extreme fear in the market, at degrees not seen since March 2020. A break of the consolidation pattern which has been forming over the past two weeks will pave the way for increased price action and volatility in the cryptocurrency market.

Having fallen by more than 60% in price due to the market crash, Uniswap (UNI) has been consolidating in the $15-30 price range in the past two weeks, forming higher lows in the process. It is currently trading in the $25-27 price range, with the $25 level, representing the 38.2% Fibonacci retracement from the previous large drop, acting as a support for price action. A break of the $25 support would indicate further bearish price action while a break of the $30 level would suggest a return to the bullish mode.

Ethereum Classic (ETC) has formed solid market structure in the past two weeks after its heavy drop, consolidating within the $40-82 range and forming successive higher lows and higher highs in its pattern. It is currently grappling with the strong support/resistance level at $71, which also represents the 23.6% retracement level from its drop from the all-time high. A break below $60 would signify further bearish price action, while a move past $82 would indicate that the market is resuming its bullish trend.

After returning to the March lows in the $470-500 price range, Bitcoin Cash (BCH) has consolidated steadily in the $470-870 price range, forming higher lows in the process. It is currently grappling with a strong support/resistance level at $700 and would need to break and stay above this level should it resume its move to the upside. A drop below $600 would indicate further bearish price action for BCH, whose recent price consolidation represents a welcome contrast to the massive 70% correction it had undergone in mid-May.

(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.

ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)

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