Crypto Market Pulse - August 20, 2024

LAST WEEK RECAP:

• U.S. CPI increased 0.2% MoM in July, which is the same as expected; the annual rate is 2.9%, lower than the 3% expected and the lowest since Apr 2021.
• U.S. Core CPI increased 0.2% MoM and 3.2% YoY, both aligned with expectations.
• U.S. PPI increased 0.1% MoM in July, less than the 0.2% expected. Core PPI increased by 0.3% MoM, slightly higher than the 0.2% expected. The annual PPI and Core PPI increase was 2.2% and 3.3%, respectively.
• U.S. retail sales increased 1% in July, much better than 0.3% expected.
• U.S. weekly jobless claim fell to 227K, less than 234K expected.
• Goldman Sachs and Morgan Stanley bought $600 million in Bitcoin ETFs in Q2, according to filings
• The U.S. Government moved 10,000 BTC seized from the Silk Road.
• MetaMask partnered with Mastercard and Baanx to launch crypto debit card.

LEGACY MARKETS – DXY

DXY is slowly getting back to range lows. It remains to be seen if it actually holds this time.

LEGACY MARKETS – VIX

VIX has completely fallen back below 21. For now, all the panic during the crash seems to have been a single event.

BTC WEEKLY VIEW

BTC is consolidating just under the 59-60k resistance. For now, 59k is still the high level to reclaim on BTC. This opens up the door back to ATHs.

ETH WEEKLY VIEW

ETH is also still consolidating. It seems that after the large drop, many market participants are out of the ETH positioning. From a sentiment perspective, the upside could come quite unexpectedly and catch participants off guard.

ETH/BTC

ETH/BTC is consolidating after the tag of multi-year support. However, if there ever was a point for ETH/BTC to really gain strength on BTC, it’s now. The combination of the ETF launch and a multi-year support level should be quite powerful interaction-wise.

TOTAL3 USD MARKET STRENGTH

Alts are still mostly building a base. Even with the large drop, many of them are still in larger ranges. But it seems the market is in quite a compression at the moment.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC surprisingly didn’t make new lows on the large BTC drop and is seemingly rotating against BTC. Given that BTC will likely range for a while, this opens up a lot of upside on all ALT/BTC pairings.

SUMMARY

• ALT/BTC ratios stayed stable during the significant drop, indicating underlying strength in the altcoin sector against BTC.
  

DISCLAIMER:

The information in this report is for information purposes only and is not to be construed as investment or financial advice. All information contained herein is not a solicitation or recommendation to buy or sell digital assets or other financial products.

This post was prepared by Kairon Labs Trader Patrick Li and Joshua Van de Kerckhove

Edited by: Marianne Dasal