Yesterday noticed many main altcoins rally to their yearly highs, with Ether (ETH) surging previous $400, which I anticipated was a probable state of affairs in my final article two weeks in the past.
Nonetheless, Bitcoin confirmed its dominance within the area by wiping out a number of billion of those good points in somewhat over an hour. So what does the week forward appear like, and simply what kind of influence may Trump’s TikTok ban have on the cryptocurrency area?
Day by day cryptocurrency market snapshot, Aug. 2. Supply: Coin360.com
Let’s get some perspective
BTC/USD 1-week chart. Supply: TradingView
Bitcoin on the weekly exhibits an image of the long run. The main cryptocurrency by market capitalization has already examined the 0.5 Fibonacci retracement degree of $12Ok earlier than being rejected.
In case you haven’t been taking note of the weekly fib, then it’s best to most likely google learn how to use the Fibonacci software on Tradingview proper now as a result of it’s most likely the closest you’ll ever get to having Marty McFly’s sports activities almanac in Again to the Future 2 than you’ll ever get.
The following degree to assert is 0.618, which sits at $13,500, and in the event you’re proud of 20% good points on Bitcoin, that’s nice. However if you take a look at different top-tier alts, you will note that the majority are buying and selling beneath the 0.236 fib, which suggests higher upside potential, and that is one thing we skilled this weekend.
Let’s begin with Ethereum
ETH/USD 1-week chart. Supply: TradingView
Ether (ETH) exploded by 80% from the underside of an ascending channel and already made a run on the 0.236 fib. Maintain at the back of your thoughts that Bitcoin is at present on the 0.5 fib, or two ranges greater than the 0.236, and ETH hasn’t even claimed that degree but.
Simply wait till this degree is damaged and Ether makes a run-up to 0.382, that’s an ETH worth of $660, and that is possible solely the start.
The potential draw back now sits across the high of the channel it broke out from, which is round $300-$330, and beneath right here I’d be wanting on the middle a part of the channel of round $280.
Regardless of the actual fact ranges have already been hit in a flash crash earlier this morning, I wouldn’t be in any respect stunned in the event that they had been reached once more earlier than the subsequent leg as much as $660.
What´s cooking with XRP
XRP/USD 1-week chart. Supply: TradingView
In case you favored the ETH chart, you’ll most likely perceive why XRP rallied laborious too. XRP briefly broke out of the identical ascending channel that Ether was in, solely XRP nonetheless has an extended technique to go to the 0.236 fib.
As a matter of reality, it has a monstrous 188% transfer to realize with the intention to attain the $0.85c fib goal. So in the event you missed Bitcoin, and also you missed Ether, there’s nonetheless an excellent likelihood that the quantity three digital asset by market capitalization may present insane good points from its present degree.
The draw back potential for XRP utilizing the identical channel ranges as Ether sits at 24 cents for the center channel and 19 cents for the decrease goal. As soon as once more, the primary degree has already been examined within the flash crash, so whether or not we’ll see these ranges once more within the brief time period is unlikely contemplating the present fib targets.
However in the event you’re apprehensive about FOMOing in on the high, there may be one other main crypto that’s but to awake from its bear hibernation.
EOS is but to run
EOS/USD 1-week chart. Supply: TradingView
EOS hasn’t been getting a lot consideration these days, and technically talking, it’s wanting like the subsequent large-cap coin to make a giant run-up to 0.236, which within the case of EOS is $6.50 and with the worth slightly below $3, this might provide you with some spectacular good points within the brief time period.
Since EOS is but to interrupt out of its channel, it’s only logical as different high tier alts begin to rally within the shadow of Bitcoin, that merchants and buyers will begin taking a look at charts buying and selling on the backside, similar to I seen with ETH and XRP, EOS is at present nonetheless buying and selling within the decrease a part of its channel, not fairly the underside — the underside is planted at $2.50 — however the threat vs. reward for EOS definitely appears interesting.
There are additionally different good causes to be taking a look at EOS proper now. Not solely is Brock Pierce at present working for POTUS, which may solely be a great factor for EOS, however mum or dad firm Block.one are focusing on Gen Z customers flocking from TikTok with their Voice Social Media platform. In a tweet on July 30, Pierce mentioned:
“Gen Z is mobilizing to face up for his or her rights and privateness! People could make a distinction. EVERY VOICE HEARD”
Pierce additionally cites an LA Occasions about widespread TikTok stars leaving the platform amid privateness issues.
The early Bitcoin investor is understood for betting on the suitable factor and the suitable time, and with President Trump hinting in the direction of a ban on TikTok as early as tomorrow, there’s a gap within the U.S. market the place 80 million customers could also be in search of options.
Whereas this may occasionally put EOS in a great place for additional publicity, there are already different blockchain-based social media platforms which can be centered on bringing new customers to the crypto area.
As soon as such firm has just lately undergone a rebrand forward of its launch this month, known as Hyprr, which is U.S.-based and partnered with banking large Wells Fargo for purportedly simple on and off-ramps into crypto, which places it in prime place to take over TikToks U.S.-based market share.
I contacted Hyprr CEO David Brieley about his place within the wake of the potential TikTok ban, the place he advised me that Gen Z consumes 5 billion hours of content material per day by way of social media, which is twice that of millennials.
In case you take into account that Steemit as soon as occupied a $1.eight billion market cap largely primarily based on hypothesis and millennial enchantment, you possibly can solely think about the optimistic influence a profitable blockchain-based social media platform may have in the marketplace if it took off like TikTok, and what higher means than to do within the wake of such a large controversial ban of one among fastest-growing viral platforms.
The bearish state of affairs for Bitcoin
If Bitcoin fails to carry the earlier multi-year resistance of $10,500 as recent help, I’d count on the draw back to be restricted to the 0.382 fib of round $9,500. Nonetheless evidently the bulls are going to be in management for a short time.
The bullish state of affairs for Bitcoin
If Bitcoin can push previous and maintain above $12Ok, then the subsequent logical space of resistance is $13,500, which represents the 0.618 fib. Nonetheless, with alts rallying, and the cyclical impact of low-cap alts flowing into top-tier alts, after which again into Bitcoin earlier than beginning over again, I’d count on the worth of Bitcoin to stay fairly flat over the subsequent week.
The views and opinions expressed listed below are solely these of @officiallykeith and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes threat. You need to conduct your individual analysis when making a call.