Bitcoin (BTC, Tech/Adoption Grade “A-”) is trading above the $48,000 support level, but still unable to cross resistance at $50,000.
It’s not surprising that we’re seeing resistance at this level.
Still, it’s reassuring to see BTC trading safely above its 21-day exponential moving average (EMA).
It’s also trading above its 200-day moving average, meaning that bullish momentum is still in play.
However, the longer it takes Bitcoin to break and hold above the $50,000 level, the more likely we are to see a short-term price correction. Add in that September has historically been a “correction month,” and we believe that, if a correction is to come, it’ll be soon.
And it’ll be short lived. We’re facing a supply crisis on exchanges as fewer ETH and BTC are available for trading. Add to that record high number of stablecoins on exchanges, and you get some pretty nice conditions for continued rally.
BTC/USDT TradingView daily chart shows Bitcoin being above 21 daily EMA (yellow line) since the end of July:
Ethereum (ETH, Tech/Adoption Grade “A”) has been quite stable in August due to the $400 million ETH burned so far thanks to the London hard fork released earlier this month.
But that stability doesn’t look like it’ll last long, per this ETH/USDT TradingView daily chart. You can see ETH appears to be in a consolidation phase throughout August:
It looks like a breakout is nearing. If the breakout is upwards, we might first see a flash dump to hunt stop losses and liquidate over-leveraged positions.
But What About the ETH Fees?
Ethereum gas fees rose a lot due to the non-fungible token (NFT) season being in full swing.
NFTs’ trading volume of $2.3 billion this month has contributed greatly to the fee consumption.
If you consider fees as a revenue stream, this is good news as it lead to the highest revenue producing week for Ethereum. On the other hand, higher fees are painful to users.
Either way you look at it, though, one conclusion is clear: the NFT trend is in full swing.
Opensea, the largest marketplace for NFTs, has taken over Uniswap (UNI) in terms of spent fees.
And floor prices of famous NFT projects have risen significantly.
The last time I wrote about Bored Apes on Aug. 2, the floor price for an Ape was 8.2 ETH.
Now, the floor price is 25 ETH. Some rare Apes from the collection have even reached Sotheby's!
Yup, Sotheby's sale starts Sept. 2.
Collectors are aping into everything connected to this project … or looks similar enough.
Bored Ape Mutants, a series of 10,000 pieces, sold out in under an hour at a Dutch auction.
And if that sounds unbelievable, CryptoPunk’s floor price has hit 140 ETH, while Punk #8888 was just bought for 888.8 ETH. In fiat terms, that’s about $465,000 and $2.9 million, respectively.
Art Block NFT project is also rising in popularity, but with more affordable floor price.
Notable News, Notes and Tweets
• Twitter (NYSE: TWTR)’s Jack Dorsey plans to build decentralized Bitcoin exchange.
• The State Hermitage Museum and Binance to auction off Da Vinci and Van Gogh NFTs.
• MetaMask wallet is open to creating its own crypto token.
What’s Next
I am expecting more volatility from BTC soon, and we’ll see if it’s able to break and hold above current resistance, or if a small correction is in the cards.
A breakout seems to be nearing when it comes to ETH.
But for the momentum, while BTC and ETH are “stable,” we’re going to see some altcoins popping up here and there, depending on bullish announcements or upgrades.
Best,
Marija
