Downward trend, consolidated position

Cryptomarket update: 30/08/20

Although the BTC price fell about 10% during this week, the bullish trend continues to control the BTC market. Looking at the chart from March this year until now with an increase of more than 100% you can see how insignificant this correction of the BTC value is.
Source: Mind Capital.

During this period, the BTC experienced its worst correction since the beginning of August, with a drop of more than 6%, that is, around 1,500 dollars.

The recent corrections of BTC are not worrying to continue focusing on a sustained increase of its values to break the $12,000 resistance

On the other hand, the BTC options, which give us an idea of the feeling of "fear and greed" from traders, do not express signs of stress. The signs coming from BTC derivatives also indicate the bullish position of this part of the market.

After analysing the BTC market in the last 3 months and other previous periods, we can observe a rule repeating itself: whenever there is a bullish run, there is a natural correction afterwards, this has happened in other years too, for example after the big rise of 240% in April 2019, there was a 9% correction.

Although there is now certain neutrality in financial derivatives, we can say that a bullish feeling still continues.

Regarding BTC ETFs, they continue to attract heavily institutional funds, such as the Fidelity fund. If institutional investors allocate only 1% of their total funds to bitcoin ETFs, this could mean a strong upward movement in the BTC price.

Despite last week's bearish tensions, they were unable to break the $11,000 support that is fairly solid.

ETH market performance.

Regarding ETH price, bullish players are making efforts to defend the 360 dollars support level for ETH. In this case ETH's resistance would be at $446 which may not be so strong, so if it breaks, the next target to be beaten would be $480. In this case anything can happen, the bears can still prevail and create deeper corrections in the ETH price.

Next we show the Coin360 mosaic corresponding to the last 7 days.

Source: Coin360 – week 24-30 August.

In this composition it can be seen that although there are many pink values, the drops are not as pronounced in the BTC and in the classic altcoins such as BCH, XRP, EOS, ZEC, etc. The support levels are very solid in many cryptocurrencies including BTC, which are keeping prices in a very defined range.

Top 5 Cryptocurrencies of the week with a great increase

Although this week there was a slight downward trend in the cryptocurrency market, we have the following cryptos that stand out for their important increase.

The most outstanding cryptos of the week are the following: Storj, NEM, Aave, Aragon and Siacoin, with increases ranging from 21 to more than 100%.

Source: Criptonoticias

1st) Storj: which experienced a 103% increase after Storj Labs' announcement to integrate with FileZilla as a decentralized P2P cloud storage solution, it is a File Transfer Protocol (FTP) for private file transfer. So we have a price increase from $0.269 to $0.773 in about 6 days. At some point the increase was as high as 160%, what it means an increase in currency capitalization of about $28 million more.

2nd) NEM (XEM): with an increase in more than 60% possibly due to the launch of a new token within its Symbol platform, called XYM. This has possibly caused XEM prices to rise from 0.076 to 0.155 cents in less than a week. XEM holders will receive an equivalent amount in XYMs. The capitalization of XEMs rose to $ 1,221 million.

3rd) Aave (LEND): The Aave platform announced that it had obtained a license to operate with electronic money in Great Britain, and as a result the LEND token experienced a 42% increase in value from 0.593 to 0.884 in just two days. Aave is a non-custodial lending platform that rivals Maker's DeFi platform (see DeFi platforms, decentralized finance). It is estimated that its value in capitalization is 985 million dollars at this moment.

4th) Aragon (ANT): The ANT token of the Aragon platform experienced an increase by 40%, after the Aragon’s announcement about achieving a greater representativeness of the tokens in the operation of the platform thanks to a new technology implemented for that purpose.

5th) Siacoin (SC): the Sia (SC) token increased again by 21% (this token has already been in the top 5 in previous articles). Its platform allows to store "on streaming" content up to 35 terabytes of data with the possibility of creating "back-ups" without high storage costs. Its capitalization continues to rise to nearly 200 million. Its price reached a peak of 0.005 dollars this week.

In summary, we are witnessing moderate decreases in the BTC and classic Altcoins without yet totally losing the upward trend, there is still room to grow, even for those altcoins whose growth was outstanding as the case of LINK. Again, the BTC-Gold correlation is fulfilled since the precious metal has also fallen slightly, and even many of the classical altcoins are also correlated with BTC and ETH.

Reports from Grayscale indicate that institutional investors are also showing great interest in new altcoins using both DeFi or decentralized finance as a means of investing in altcoins using too options, futures and ETFs referenced not only to BTC but to altcoins.

However, we are still far from the massive adoption of cryptocurrencies even though DeFi, and crypto-derivatives are growing exponentially.