The past seven days for the crypto market have been significantly bad. There has been heavy selling pressures across the board after the positive action from the week before. The earlier weeks had reacted well to positive set of CPI numbers and rising interest rated by the Federal Reserve but this past week, without any necessary stimulus in the market saw selling pressures from all over.
The overall crypto market cap has fallen over 7.5% in the past seven days, from from near $1.17 trillion to currently trading around $1.09 trillion. This is a very major fall for the total crypto market cap on a week-on-week basis.
In line with the broader crypto market cap, Bitcoin price too have fallen significantly from its highs. BTC prices have managed to fall from highs of well over $25,000 levels to sub $23,000 levels now. Over the past 7 days, Bitcoin prices also fell about 7.1%, pretty much mimicking the global crypto market cap.
The altcoin king, Ethereum however has managed to become more or less reliant on Bitcoin price and its fluctuations. Ethereum price earlier tended to fall more severely than Bitcoin when it came to price corrections but this time around, ETH prices fell pretty much in line with Bitcoin too, at about 8% over the week. ETH price have gone from $2000 to now just managing to sustain above the $1800 mark.
If we look at the list of the top 10-15 cryptos by market cap, those had taken the brunt of the fall in the market. Major heavyweight altcoins like Uniswap (UNI), Solana (SOL), Avalanche (AVAX) and Polkadot (DOT) managed to lose in double digits, some even close to 20%! However in the same list, some other altcoins managed to lose slightly less than Bitcoin and Ethereum – namely XRP and Cardano (ADA).
And the most surprising of all, memecoins the likes of Dogecoin (DOGE) and Shiba Inu (SHIB) managed to deliver stellar returns over the past week, both managing to gain 4.5% and 8.5% respectively over the past seven days.
Broadening out view a little bit, it becomes evident that while we did see bearishness in the crypto market over the past week, it was only led by the heavyweights. There were some other altcoins from the larger top 100 list which managed to gain sizeable amounts over the week, the biggest of which happens to be Chiliz (CHZ) – which gained over 35% in this timeframe. Other major gainers apart from the memecoins, included Huobi Token (HT) and EOS.
Some other major losers in the same timeframe included Convex Finance (CVX) – a coin which has been falling for quite some time, and not just the week. Other like MINA, The Graph (GRT) and Helium (HNT) saw major losses too.
Currently, the status of the overall crypto market cap has turned slightly bearish. It has fallen well below the higher high, higher low price pattern on the charts, thus that bullish action has been invalidated completely. Now it remains to be seen whether the market is able to sustain over the 50-day moving average (marked in cyan) and the trendline support (marked in orange). If those are breached going forward, we may see a return to sub $1 trillion levels in the very near future, probably before the end of this month.
The Relative Strength Index too has fallen below 50 as of writing this article and hence, prices may tend towards the sell side, until we reach the oversold zone, which is still quite far away, thus opening up the road for further selling pressures. So overall, things seem to be in a precarious situation as of now and the price action in the next few days will decide how the rest of the month is going to turn out to be.
CRYPTO MARKET TODAY AT A GLANCE
|Global crypto market cap||$1.09 trillion|
|Rise/Fall in crypto market cap||-6.1% (WoW)|
|Global DeFi TVL||$63.6 billion|
|Rise/Fall in DeFi TVL||-8.7% (WoW)|
Bitcoin(BTC) Nosedives Below $22000
Bitcoin price action, is as expected, a mirror image of the broader crypto market – no surprise there. It did manage to lose slightly less than the overall crypto market cap, which is also a well known phenomenon too. However, what one has to notice is that BTC price are much closer to its own 50-day moving average (marked in cyan) and the trendline support (marked in dark blue). This means, from a technical standpoint, Bitcoin is more likely to turn bearish first and then possibly drag the overall market down with it.
The Relative Strength Index for BTC is also well below 50, currently around 44 as against 48 for the total crypto market cap. Thus we can expect Bitcoin prices to face substantially more selling pressures and eventually drag the market down along with it. The next day or two are going to be extremely critical for Bitcoin as it would decide whether or not the little bullishness it still has will completely evaporate or not.
Additional Read: Bitcoin Price Prediction Weekly
TOP CRYPTO MARKET NEWS OVER THE PAST WEEK
1. HUSD STABLECOIN LOSES ITS DOLLAR PEG, THEN RECOVERS
The Stable Universal issued HUSD stablecoin has lost its dollar peg, and had lost around 15 cents at its lowest point, at one time trading near $0.85 against the dollar. This momentary depeg happened about two weeks after crypto exchange FTX dropped HUSD from its list of supported USD stablecoins. According to CoinMarketCap however, it has since then recovered back its peg and is valued at $1 now.
2. MEMECOINS DOGE & SHIB BECOME BIGGEST GAINERS AMID BEARISH WEEK
Dogecoin (DOGE) and Shiba Inu (SHIB) – two of the largest memecoins by market cap managed to score positive returns over the past week despite broader market weaknesses. This is an unusually surprising turn of events however analysts are openly taking contrarian views to this memecoin rally – calling it a sign of market topping out and expecting further weakness in the days to come.
3. ALL PREPARATIONS FOR ETHEREUM MERGE COMPLETED
According to a tweet by Ethereum core developer Tim Beiko, as per the Readiness Checklist, all the preparation for the upcoming Ethereum Merge are now completed. The Merge Mainnet Readiness Checklist is a list that helps developers complete tasks include software implementation, testing, document release, R&D among many other things to streamline an otherwise complicated process.
Merge Mainnet Readiness Checklist is all checked out ✅ Feels good 😁 https://t.co/943v4LuS7g
— Tim Beiko | timbeiko.eth 🐼 (@TimBeiko) August 17, 2022
4. CME TO LAUNCH ETH OPTIONS AHEAD OF THE MERGE
One of the biggest derivatives marketplaces in the United States, the Chicago Mercantile Exchange (CME) Group has expressed an intent to launch options trading for its Ether (ETH) based futures products. In an announcement on 18 August, the CME Group said that the decision is still subject to regulatory review and it plans to launch options for tis ETH futures, sized at 50 ETH per contract. The firm has already launched a micro-sized BTC and ETH options on March 2022 and BTC options back in January 2020.
5. RARIBLE PROPOSES NO-FEE BAYC MARKETPLACE FOR APE HOLDERS
Just days after Magic Eden’s proposal on similar lines, Rarible has launched its own proposal idea to ApeCoin (APE) holders to build an exclusive Bored Ape Yacht Club NFT marketplace for the ApeCoin community, but undercutting Magic Eden’s proposal by offering a zero-fee trading pitch.
— Rarible (@rarible) August 17, 2022
TOP CRYPTO PRICES OVER THE WEEK
|COIN||PRICE ($)||PRICE (INR)||% CHANGE (7-DAY)||MARKET CAP|
|CHILIZ (CHZ)||$0.2||₹17||34.7%||$1.2 BILLION|
|SHIBA INU (SHIB)||$0.000013||₹0.0011||8.2%||$7.3 BILLION|
|GNOSIS (GNO)||$193.3||₹15,415.9||5.6%||$496 MILLION|
|DOGECOIN (DOGE)||$0.07||₹6.3||4.3%||$9.8 BILLION|
|COIN||PRICE ($)||PRICE (INR)||% CHANGE (7-DAY)||MARKET CAP|
|CONVEX FINANCE (CVX)||$5.4||₹430.6||-25.8%||$361 MILLION|
|OASIS NETWORK (ROSE)||$0.07||₹6.2||-24.8%||$375 MILLION|
|THE GRAPH (GRT)||$0.11||₹9.75||-23.2%||$766 MILLION|
|CURVE DAO TOKEN (CRV)||$1.09||₹93.9||-21%||$575 MILLION|
CRYPTO MARKET: THE WEEK AHEAD
So drawing conclusions from the observations above, we can expect a bearish week coming up ahead for the crypto market. Bitcoin and Ethereum have lost significantly and it’s unsure how long it will take them to recover back their lost ground. If we have any positive news coming our way, we may see a recovery within a day or two but without any external stimulus, it is difficult to say how things are going to be. We’ve got to wait and watch how things turn out.
Prices as on 19 August, 2022.
Additional Read: BTC Price below $24,000