The latest moves in crypto markets, in context Was this newsletter forwarded to you? Sign up here. |
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Good morning, and welcome to First Mover. I'm Lyllah Ledesma here to take you through the latest in crypto markets, news and insights. We wish our readers in the U.S. an enjoyable Labor Day, with banks and most traditional markets closed.
In today’s newsletter: Price Point: Bitcoin remains below the $20,000 threshold and ether ticks up slightly on the day. Gas prices surged and the euro and pound slumped after Russia shut down gas flows through the main Nord Stream 1 pipeline to Germany. Market Moves: Could ether be set for a renewed price rally ahead of the Merge?Chart of the Day: Bitcoin's recent consolidation around $20,000 has taken the shape of a symmetrical triangle.
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Bitcoin (BTC) was trading flat on the day at around $19,700. The world’s largest cryptocurrency by market value hit lows of $19,400 over the weekend after witnessing a short uptick on Friday following the U.S. jobs report. As BTC is trading below the crucial support level of $20,000 a significant break at this point could be really damaging, according to analyst Craig Erlam at OANDA. “The following key level below here would be the June lows of around $17,500,” said Erlam in a morning markets note. “Considering the outlook for risk appetite in the near term, it's not looking good.” Ether (ETH), which has performed slightly better than bitcoin over the last few weeks, was up 1% over the last 24 hours. The network’s much anticipated Merge is just over a week away. For altcoins, Polkadot was up 4% and Chainlink was up 3.7%. In traditional markets, gas prices surged and the euro and pound slumped after Russia shut down gas flows through the main Nord Stream 1 pipeline to Germany. The decision has created more uncertainty in Europe going into the winter months. The Stoxx Europe 600 Index fell 1.1%. In the news, the Nigerian Export Processing Zones Authority (NEPZA) is in discussions with crypto exchange Binance over plans to create a virtual free zone focusing on blockchain and the digital economy. Unusual blockchain data showed 10,000 BTC, worth more than $200 million, were moved in two transactions in the last week.
And, Poolin, one of the world's largest bitcoin mining pools, sought to assure users their funds are safe while acknowledging it is facing liquidity problems. Users have been complaining about issues with withdrawals from their wallets since at least August.
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Ether Primed for Pre-Merge Rally After Wedge Breakout |
Ether (ETH), the second largest cryptocurrency by market value, looked set for renewed price rally ahead of the Ethereum "Merge," according to observers tracking chart patterns. Last week, the native token of Ethereum's blockchain broke out of a falling wedge pattern identified by two converging and descending trendlines connecting Aug. 14 and Aug. 25 highs and lows hit on Aug. 10, Aug. 20 and Aug. 28. "The formation is solid confirmation that ETH could go up in September more than anybody thinks," Bill Noble, chief technical analyst at cryptocurrency research company Token Metrics told CoinDesk when asked what the wedge breakout indicates. Ether's wedge breakout indicates the correction from the Aug. 14 high of $2,000 has ended and the uptrend from the June 13 low of $1,000 is likely to resume. Prices doubled in the four weeks to Aug. 14 as equity markets regained poise and Ethereum developer Tim Beiko hinted at Sept. 19 as the deadline for the long-awaited Ethereum Merge – the technological upgrade that will transform the smart contract platform to a proof-of-stake network. The overhaul is likely to cause a drastic reduction in ETH supply and bring a store of value appeal to the cryptocurrency. The Merge is slated to happen sometime around Sept. 15. Traders often use technical analysis – a study of price patterns – to help make investment decisions. The falling wedge begins wide at the top and contracts as prices move lower, causing the two descending trendlines to converge as the pattern matures. The converging nature of trend lines represents shallower lows, a sign of decreasing selling pressure. Therefore, a breakout is taken to mean a bullish revival. |
Ether exited the falling wedge on Thursday, setting the stage for a pre-Merge rally. "Ether has broken out of a falling wedge. A move above $1,700 would add conviction in the bullish momentum heading into the Merge," Lewis Harland, a researcher at Decentral Park Capital, said. Read the full story here. |
Bitcoin Forms a Symmetrical Triangle |
Bitcoin's recent consolidation around $20,000 has taken the shape of a symmetrical triangle. The next move depends on the direction in which the ongoing bull-bear tug of war is resolved. A breakdown would open the doors to lows under $18,000 reached in June. |
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The following are the biggest movers in the CoinDesk 20 digital assets over the past 24 hours: |
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Biggest Gainers Biggest Losers |
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Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges. |
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Which institutes are most impacting the blockchain world? Tell us your thoughts in a five-minute survey. We're welcoming responses until Sept. 7. Take the survey here. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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