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Crypto Focus: Another Interesting Week for Crypto Traders

August 12, 2022
by Joseph Jeffriess, Market Analyst

Another interesting week traders. We saw a mainly stronger weekend session with AVAX leading the charge, but we also saw some early week chop with a decent fall on Tuesday’s session. The top 25 saw a 4.58% drop on Tuesday. You might have been forgiven to start having some minor concerns on Tuesday as pressure looked to be well and truly back on the recovery trend. Bitcoin, for instance, breached its trendline.

Things changed on Wednesday after US CPI revved up risk markets, including Crypto. Inflation was expected to come in at 0.2%, well down on the last 1.3%. The surprise was even better, with data coming in at 0.0%. This was just what markets wanted to see, and the effect was immediate as stock futures, risk currencies and cryptocurrencies all rallied, pulling back most to more of Tuesday’s losses. Thursday saw another solid day on most of the top 10 and 25 as buyers continued from Wednesday’s buying. Thursday’s high saw 3.39% added to the top 25 and 3.83 added to the top 10.

Those highs were on the short term as sellers started trimming into the NY session. All of the top 10 failed to close to highs, and most finished close to their open. ETH remained in vogue and did the best out of the top ten on Thursday. Looking at some of the performances over the last few days, we have seen several strong performances.

  • Ethereum +16.3%
  • BNB +11.0%
  • Solana +10.5%
  • Polkadot +19.5%
  • Avalanche +26.4%
  • NEAR 29.5%

The above are just a selection and obviously, there were many more to choose from.

This week, we will continue to watch a few of the top 10  and 25 as they failed to hold breakouts and remain held under resistance and in consolidation patterns. ADA, BTC, SOL and AVA are examples of what we’re watching in the top 10 and top 25. We hoped to see more buyer conviction this week and possibly some breakouts. So far, these have just not been confirmed yet.

Let’s take a look at Solana, for instance (the pattern here can also be seen on ADA). We can see the clear wedge/triangle pattern that is currently a consolidation pattern.

We can see this week’s attempt to break that was rejected, and the ST resistance currently holds the price. Yes, Wednesday and Thursday were great but did it change anything? At this stage no, we remain with very little to no clear direction. What we really need to see now is a clear breakout that we could look to enter once it has been confirmed. I’m not leaning to the buy-side just yet as OBV currently looks as flat as price, and we can’t see any divergence that could give us an idea of a future breakout. I’m not convinced of the midweek rally and feel we need a strong move to break the current deadlock.

All times are AEST.