OTC Weekly Trading Insights - Aug 19, 2022: The Bears Strike Back!
This week has been extremely choppy for BTC. As of Friday morning, the narrative flipped as bears took control, driving prices down over 7%
- The rest of the market has followed suit, with altcoins down on the week. RUNE, NEAR, COTI & ADA - despite the volume increase for most of them - are all down double digits.
- Interestingly, this week has been one for the dogs, as everyone's favourite meme-coins saw an increase in volume earlier this week subsequently followed by a rise in price. SHIB has seen an increase in volume of nearly 230% and is currently up over 6% in the last 7 days.
- Earlier this week, ADA held up relatively well despite the market pullback. However, since BTC took a nosedive this morning, ADA is currently down 11.4% for the week.
Trade our top 5 weekly coins of interest here!
Convert Portal Volume Breakdown
- With the market cooling off this week, we have seen an increase in stablecoin swap transactions (topping the list again) increasing 5.3%. Whilst it is unknown what is driving stablecoin swap demand, it would be safe to assume there is still a lot of uncertainty around the topic!
- Crypto-to-stablecoin transactions were 2nd highest this week again, decreasing 2.97%. With the market cooling off after rallying, investors will be looking to secure profits as they move to the sidelines.
- The majority of other transactions this week have also seen a decline, once again expected as the market pulls back.
Overall market technicals
BTC: Bears break the trend line!
- Last weekend BTC failed to trade above $25k forming 3 peaks, before slightly pulling back to the downside.
- Midweek was relatively stable as it traded sideways prior to the UK inflation data announcement. After the announcement we saw a spike up, before trading further to the downside, with the trendline we identified failing to hold.
- The momentum continued early hours Friday morning, as bears continued to drive price further down breaking through the weekly support (again).
- Currently BTC is trading around $21,700. With the sudden shift in market structure, we will need to see the next potential support level of $21k hold for bulls to regain momentum.
- The Crypto Fear & Greed Index is at ‘33’ showing Fear within the market, decreasing by 9 points since last week.
- SHIB was a coin of this interest this week as price rallied over 40% after seeing a sudden increase in volume of nearly 230%, outperforming the majority of the market.
- Looking at the charts, SHIB was trading in a small uptrend following the rest of the market. At the start of the week when BTC started to make a reversal, SHIB saw a huge volume influx, subsequently breaking through range highs causing the spike in price.
- The pattern can be identified as a some form of wedge, but it ultimately looks like a fake signal.
- Currently SHIB is trading back at the range highs and near the trendline it formed. This trendline will be determined by BTC, as if we continue to see downward pressure SHIB will follow pursuit! As always, trade with caution during these volatile periods!
09/15/22 - ETH Mainnet Merge
09/28/22 - TOKEN2049 Singapore
News events of note
$150m loss for Canadian fund Giant - CDPQ, a Canadian fund manager, is feeling the burn after reporting a loss of $150m as a result of Celsius collapsing.
BTC goes tropical! - Soneva, a leader in luxury hospitality, has started accepting BTC & ETH at its properties in Thailand and the Maldives.
Google goes big on Crypto! - According to a new report, google's parent company, Alphabet, has invested a total of $1.5b between september 2021 & June 2022, investing the most capital in its blockchain business compared to any other public company.
More news found here!
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