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Market Analysis

Weekly Technicals - Volume XVI

Updated: Aug 31, 2024
Published: Aug 3, 2020
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Market Sentiment

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After an exciting week of relentless upside, it is without a doubt that market participants have become greedy. The latest large wick down that liquidated many longs has reduced that greed slightly and reminded traders that markets move both ways; as some seem to have forgotten.

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Volume

After a severe volume drought, the market broke out of its tight range and so did the volume. A move without volume always bring questions about its strength, this isn’t the case here.

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Market Indices

Total Market Cap

After the descending channel breakout we’ve identified weeks ago, the market has picked up very nicely. The market was recently able to cross the $287B and $326B resistances which will now be considered support. The next level we are looking at is in the $400Bs as explained a while back.

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Altcoins Market Cap

Altcoins also broke out of their descending channel and rallied towards $110B and took it out of the way. The next level is the liquidity zone at $140B beyond which few levels lie.

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Bitcoin

Bitcoin made a $3000 move in no-time. Price cut through the previous October 2019 and February 2020 highs with ease. It then rallied towards $11,500 and found resistance as well as many over-leveraged longs got rinsed which maintains a healthier landscape for further rallies. The next level to take out is $11,500 beyond which the June 2019 high becomes within reach.

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Ether

Ether has simply “melted faces” in the past few days/weeks. Since the descending channel and bull flag breakouts it has reached two of our targets in a very short period of time: $280 & $360. Now is the moment of truth where if $400 is crossed, $500+ becomes possible and a new era starts?

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