Macro Overview
- US Consumer Price Index Year-over-Year (CPI YoY):The US CPI YoY came in at 2.9%, which is below the expected 3%, making it a positive data point. However, despite this, the crypto market declined, indicating ongoing uncertainty. Traders should exercise caution during data announcements, as the market has recently been reacting oppositely to positive or negative data releases.
- US Producer Price Index (PPI) m/m: US (PPI) for the month came in lower than expected, which is positive for the market. Following the announcement, the market experienced a small uptick.
- US Unemployment Claims (Weekly): US Unemployment Claims for the week came in lower than expected, which is bearish for the crypto market.
Crypto Markets Overview
Top Tokens Update
- TON Collaborates with Pyth Network to Enhance Real-Time Data Feeds: Pyth Network has partnered with The Open Network (TON) to integrate its oracle service, which provides on-demand price data. This collaboration aims to support TON’s gaming and DeFi projects by offering accurate, real-time data feeds. This will help developers create better in-game economies and improve transaction speeds for DeFi services. Additionally, Pyth’s service is expected to assist TON in attracting new Web3 users by delivering the responsiveness comparable to traditional Web2 services.
- Grayscale Launches MakerDAO Trust, MKR Sees 5% Increase: Grayscale has recently introduced the MakerDAO Trust, expanding its range of cryptocurrency investment products. Launched on August 13, this new fund focuses on MKR, the governance token of MakerDAO, catering to investors interested in financial solutions. The introduction of the trust highlights Grayscale’s commitment to diversifying its offerings to meet investor needs. Following the launch, the MKR token saw a 5% increase, reflecting positive market reception and heightened interest from both institutional and individual investors.
- Aave Token Rises as Number of Weekly Borrowers Hits All-Time High: Aave’s token has experienced a surge as the platform sets a new record for weekly active borrowers, reaching approximately 40,000, according to Dune analytics. The lending protocol also approached an all-time high in weekly depositors, as shared by Aave founder Stani Kulechov on social media. This increase in activity has positively impacted the Aave token, reflecting growing user engagement and platform utilization.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| August 21 | 11:30 PM | US FOMC Meeting Minutes | More dovish than expected is good for crypto |
| August 22 | 6:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
| August 22 | Day 1 | Jackson Hole Symposium | – |
| August 23 | Day 2 | Jackson Hole Symposium (Powell Speech) | – |
| August 24 | Day 3 | Jackson Hole Symposium | – |
Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is Neutral.
- This week, Bitcoin remained choppy as the market dropped despite positive PPI and CPI data, reflecting ongoing uncertainty. Technically, the market looks neutral for the next week, but a lack of strength persists. The upcoming Jackson Hole Symposium, particularly Powell’s speech, will be the main event to watch, as it could induce significant volatility in the market.
- Key support levels to consider are around $58500 (Current Price level) and $56000. On the upside, resistance levels is at $63,500, $65,500 & $67,000.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavours.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears neutral.
- This week, Ethereum (ETH) outperformed Bitcoin (BTC) but is still moving within a range on the lower time frames. Technically, ETH appears neutral for the upcoming week, with no clear direction established yet. A crucial level to watch is $2,850, which ETH needs to reclaim for a bullish continuation.
- Significant support levels include $2525 and $2180, while resistance levels to watch are at $2850 and $3050.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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