Crypto Signals Brief for August 2: Cryptocurrencies Continue to Make Higher Highs

Last Week’s Market Wrap

The cryptocurrency market continues to remain bearish on the longer term timeframes, although it has been making higher highs for about a month. So, we have to be content with that for now, given that the war on cryptocurrencies continues. Coinbase Global Inc. is facing an investigation from the Securities and Exchange Commission (SEC), just like Ripple (XRP), whether it improperly let people trade digital assets that should have been registered as securities, according to Bloomberg.

As a result, cryptocurrencies keep going up and down, but with a bullish bias as lows continue to get higher. On another note, Barclays is taking a $2 billion stake in Copper, which is one of the latest names in the fast-evolving cryptocurrency sector, even though the industry remains under attack.

The Outlook for This Week

The crypto market has been reversing lower in the last several days as the uptrend unfolds in waves, although the reversal of the last several days looks slow and the price is still higher than at the beginning of last week. Cryptocurrencies made a new recent high last week, with Bitcoin (BTC) climbing above$25,000 for the first time since the middle of June and Ethereum finally pushed above the previous support zone at around $1,700.

At the moment they are bearish on the smaller timeframes such as the daily chart, but we are trying to pick a bottom as we will explain further below in the crypto signals section. So we are waiting for this latest bearish wave to come to an end and then try to open some buy signals on the main cryptocurrencies.

In the previous several weeks, we had a great run with our crypto signals. We continued to trade the range where they bounced for more than a month, selling near the top and buying near the bottom. Last week though, we didn’t have much success trading cryptos as a breakout took place to the upside, closing the week with one winning Ethereum signal and two losing crypto signals, out of the three in total.

BITCOIN Following the Upward Channel

Bitcoin has been bearish on larger timeframe charts since November, but the decline stopped below the $20,000 level, which has formed a support zone around it and since June, BTC has been trending higher. This doesn’t look like a proper trend reversal on the larger timeframes, but it is good enough to trade the range between two trendlines.

BTC/USD – H4 chart

ETHEREUM Makes It Above $1,700

Ethereum was bearish as well for many months, falling below $900 in June, but reversed back up and the zone around $1,000 turned into support. In the last two weeks, we have seen buyer take charge, as we approach the Ethereum Merge to proof-of-stake while it keeps getting postponed.

That will take the development of the Ethereum blockchain network from 40% to 55% according to Vitalik Butterin. Ethereum buyers are having trouble at the 100 SMA (green) now, after pushing above $1,700, but we are looking to buy ETH as well if MAs lower hold as support.

ETH/USD – Daily chart