Crypto Market Review, August 8
Cryptocurrencies rise after investors’ fears are removed from the industry
The cryptocurrency market is finally showing signs of a potential reversal as Bitcoin broke through the $24,000 threshold and Ethereum is flirting with the $1,800 price range which could be a pivotal point for the entire market.
Bitcoin has a way to go
Unfortunately, the breakout through the $24,000 resistance level does not mean that Bitcoin will go into a strong rally and reach extremely high price levels, such as $30,000. For now, BTC is still moving in the consolidation area which will most likely hold until we see a sudden increase in the flow of assets flow into the market.
Fortunately, Bitcoin bounced off the lower bound of the consolidation area at around $22,550 and went up. For now, we expect a test of the increased consolidation area around the $25,690 level. The sentiment around the cryptocurrency remains positive as the negativity in the industry caused by the Solana and cross-chain bridging solutions is gone.
For now, the first cryptocurrency could use a boost from institutional investors that will push trading volume in the cryptocurrency market back to March levels. The increase in trading volume will be a direct confirmation of the new reversal rally.
Advertisements
Ethereum breaks important price level
After two failed attempts, Ethereum finally broke through the important $1,800 price level, which is the main barrier for the second largest cryptocurrency on its way to $2,000.
Unfortunately, with all the problems the market faced in the last week, Ethereum had to slow down on its way up and go back to the $1600 price level. Investors’ main fears were limited to the problems some derivatives platforms faced ahead of the Merge update and the migration of the hash rate towards alternative networks.
Numerous centralized exchanges and derivatives trading platforms have presented their own solutions for Ethereum PoW tokens that will become a necessity after hard forks appear in the space.
Altcoins are participating in massive rallies
At least five altcoins showed strong signs of upcoming market rally as their price performance exceeded double-digit gains. The most notable assets are Chainlink and Flow, both showing impressive price performance of 11% and 13% respectively in the last 24 hours.
The main fuel for the Flow rally is Meta’s news of implementing NFTs on Flow on the platform, so users will showcase their artwork alongside NFTs from platforms like Ethereum and Polygon.
