Weekly Market Analysis of Cryptocurrencies
We report the traditional weekly crypto market analysis based on the contribution by Aayush Jindal (Cryptonews.com). The analysis was made on August 14.
In the past few hours, bitcoin price traded with a positive angle above $11,350 and $11,400. BTC even climbed above 11,500, but it struggled to continue above 11,600. It is consolidating near 11,500. To continue higher, the price needs to gain momentum above 11,550 and 11,600. Conversely, the price might restart its downward move below 11,400. The first major support is near 11,200, below which the price might test 11,000.
Ethereum price gained over +6.0% and it traded above the $380 and $385 resistance levels. ETH even spiked above 395, but it failed to clear the key 398 and 400 resistance levels. It is consolidating gains near 390 and it might test the 380 support. On the upside, the price must surpass the 400 hurdle to continue higher. If the bulls succeed, the price could rise towards 420 in the near term.
Bitcoin cash price is down over -2.0% and it is now trading below the $280 support. It seems like BCH might continue to move down towards 272. The main support is near 265. Conversely, a proper close above 285 might lead the price towards the 300 resistance.
ADA started an upside correction from the $0.125 support and it recovered above $0.135. However, the previous support near 0.140 acted as a strong resistance. The price is currently moving lower and declining towards the 0.135 and 0.132 support levels.
XRP price is facing a strong resistance near $0.285. It is trading below 0.280 and it might revisit the 0.272 support. Any further losses could accelerate the price towards 0.265 in the near term. To start a strong rally, the bulls need to gain strength above the 0.285 resistance.
In the past three sessions, a few small altcoins surged more than +30.0%, including NMR, XDCE, ANT, SXP, WAVES, BTS, ALGO, IRIS, LINK and RLC. Overall, NMR climbed +150% and broke the $50.00 resistance.
Mining Stocks Are Beating Bitcoin in a Bullish Cryptocurrency Market
Zack Voell (Coindesk.com) writes that “Betting against bitcoin has been a losing battle for months with the crypto up more than 200% since its March lows. Benefiting from this rally, moreover, cryptocurrency mining stocks trading on U.S. markets are significantly outperforming the benchmark cryptocurrency.
Over the past year, two cryptocurrency mining companies – Riot Blockchain and Marathon Patent Group – have gained 97% and over 128%, respectively. Bitcoin is up 3% in the same period. The companies moderately underperformed bitcoin during the Q1 2020, but since mid-April, both took off. The size of both companies mirror the relatively still small size of the crypto space, with neither company reporting a market capitalization above $150 million.
Riot and Marathon currently have mining capacities of 357 petahash and 19 petahash per second. The companies’ strong performance comes on the back of record trading volume. Marathon daily volume soared to an all-time high of over $225 million on Aug. 3, up from $1.6 million a month earlier. Three days later, the company reached a two-year high of $5.25 per share. After reporting less than $5 million for most of July, Riot daily volume also skyrocketed to a record-setting $58 million on Aug. 3 shortly before setting a new yearly high of $4.58. “It’s also natural for mining stocks to rise faster than bitcoin because investors are pricing in a bull market, which could cause revenue to balloon,” Watkins added.”
Goldman Sachs considers creating its own cryptocurrency
Kevin Helms (Bitcoin.com) writes that “Goldman Sachs has recently appointed a new head of digital assets, Mathew McDermott, who ran the investment bank’s internal funding operations. He has revealed that Goldman is exploring creating its own cryptocurrency, CNBC reported on Thursday, quoting the new digital assets chief as saying: We are exploring the commercial viability of creating our own fiat digital token.
However, McDermott added that “it’s early days as we continue to work through the potential use cases.” He is expanding his team at Goldman Sachs, reportedly hiring Oli Harris, JPMorgan Chase’s head of digital assets strategy. Harris was involved in JP Morgan’s cryptocurrency, the JPM coin, and was also a vice president in charge of Quorum, the ethereum-based blockchain platform that underpins the JPM coin. The coin, pegged to the U.S. dollar, enables the instantaneous transfer of payments between institutional clients, JPMorgan explained on its website.
McDermott said that it is crucial to build “consensus with other banks, institutional investors and regulators,” the publication noted. He believes that “The technology will only take off when it gains a critical mass of users across the world of finance” and “industry consortiums are the best way forward.”
McDermott further explained that he “spends a lot of time talking to other companies, including JPMorgan and Facebook.” Facebook has proposed a cryptocurrency project called Libra, which recently updated its plans to better comply with regulatory requirements. According to CNBC, he indicated: One Goldman project involves collaboration with JPMorgan, potentially regarding how the two banks’ nascent technology efforts could work together.
“In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on chain,” the new digital assets head opined.
He believes that “Since the boom days of bitcoin a few years ago, interest has shifted from retail and rich investors to large institutions,” the publication conveyed. “We’ve definitely seen an uptick in interest across some of our institutional clients who are exploring how they can participate in this space … It definitely feels like there is a resurgence of interest in cryptocurrencies,” McDermott was quoted as saying.
Goldman Sachs has not been pro-cryptocurrency in the past. In May, the investment bank told its clients that “cryptocurrencies including bitcoin are not an asset class.”