August 24, 2021

​​$BTC 24 Hour High $50,320
$BTC 24 Hour Low $49,130
$BTC +0.3% past 24 hours; +7.1% past 7 days

BTC rally lifts entire market and consolidates before 50K

Good morning. Today we thought it would be beneficial to look at some chain metrics to understand the general mood towards the crypto industry. Firstly, BTC held by long-term supply holders are at a new record high before the initial bull run. This suggests accumulation of coins is taking place, and new participants are yet to enter the market. The number of active addresses in the market is comparable to May 2020, when $BTC was around 7K. Will FOMO take place soon? Yet BTC searches on Google Trends are still at the lowest level since Dec 2020. This may suggest that while $BTC is recovering, the vast majority of the crypto world is still unaware of, or slightly indifferent to the revival.

After spending around 12 hours above the 50K mark yesterday, $BTC eventually failed to hold this level. $BTC is now testing the higher end of the price consolidation area that we have been in since Aug 20 — this is strikingly similar price action to Aug 14. If there is a repeat of the following few days, we could see BTC testing 48K before pushing higher.  

Compared to $BTC, $ETH has underperformed over the last week, but it looks like the status quo is changing. $ETH is finding support from the downward trending resistance line, which was broken and has now been tested as support (see the chart). ETH is likely to continue outperforming over the coming few days. The use case for $ETH over $BTC seems to be becoming ever more apparent when looking at the NFT and DeFi activities. 

According to SEC filings dated Jun 30, behemoth asset manager Blackrock has joined Fidelity and Vanguard in partaking in significant stakes of BTC miners Marathon Digital (6.7%) and Riot Blockhain (6.6%). Blackrock’s disclosure follows the recent trend of investors and traditional financial institutions gaining exposure to the crypto space through the equity market. With the earlier announcement of China banning crypto mining earlier in the year, US-based miners are expected to enjoy reduced competition and potentially lower their infrastructure costs by absorbing the excess rigs/equipment into its existing mining set-up.

Learn more from today’s Trader View video.

Digital assets market:

  • Total crypto market capitalization stands at $2.22T, +2.1% from yesterday
  • $BTC is down 0.3% at time of writing, support / resistance – 48,440 / 52,270
  • $BTC liquidations and funding: $111.97M, 0.0122% average
  • $ETH is down 0.1% at time of writing, support / resistance – 3,230 / 3,340
  • $ETH liquidations and funding: $55.93M, 0.0214% average

Alts and DeFi watch:

  • DeFi TVL: $85.46B
  • $ATOM down 4.44% in the last 24 hours, up ~38.35 in the past week 
  • $MKR up 0.10% in the last 24 hours, up ~7.78% in the past week
  • $AMP up 9.60% in the last 24 hours, up ~13.25% in the past week
  • $KSM down 3.23% in the last 24 hours, up ~11.34% in the past week

More news that caught our eye:

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