The past week in the cryptocurrency market was characterized by high volatility and significant price fluctuations. Bitcoin traded in a wide range from $49,000 to $62,745. The week began with a sharp decline on August 5, when the BTC/USDt pair fell 7.12% to $54,018, hitting a low of $49,000. This decline was caused by the collapse of Asian markets and the subsequent decline in American stock indices. However, already on August 6, the market began to recover, and the BTC/USDt pair grew by 3.71% to $56,022. On August 7, a correction was observed, and Bitcoin fell by 1.58% to $55,134. The situation changed dramatically on August 8th when Bitcoin posted an impressive 11.88% rise to $61,685. This rise was driven by positive news in the Ripple court case and the approval of payments to creditors FTX and Alameda Research. On August 9, the market corrected slightly, and BTC/USDt decreased by 1.37% to $60,837.8
Among the main events of the week, it is worth noting the publication of positive US economic data, including an increase in the index of business activity in the services sector and a decrease in the number of applications for unemployment benefits. These factors contributed to the growth of American stock indices, which in turn supported the cryptocurrency market. Also important was Nasdaq’s request from US regulators to allow options trading on Ethereum-based spot exchange-traded funds (ETFs).
From a technical point of view, the week was marked by the formation of important support and resistance levels. Key levels were $57,100 and $63,500, with the latter seen as a potential breakout point for further gains. Intermediate resistance was at $58,900. The important point was the closing of the price above $57,100, which recorded a false breakout of the trend line and reduced pressure on the price. On the weekly chart, the formation of a hammer or pin bar candlestick pattern could support further recovery towards $70,000.
On Sunday, August 11, Bitcoin (BTC) was trading around $60.8 thousand, its price remained virtually unchanged over the week. Weekend trading takes place around a trend line starting from a low of $49,000. At 12:00 UTC on August 10, it forms support at $60,165. The flat lasts 37 hours, and if buyers do not become active within 30-34 hours, the probability increases seller activity. A breakout of the trend line could lead to a decline to $57,000. How the weekly candle closes is critical. The formation of a bullish hammer or pin bar pattern on the weekly chart could support buyers to continue the recovery towards $70,000. Growth stopped at 50% of the channel formed on March 14. The next targets for buyers are $63,100 and $67,000.
Our expert Konstantinas Sizovas analyzed the market situation and assessed the prospects for the movement of the Bitcoin rate over the next seven days. High volatility and low liquidity can cause sharp fluctuations. The level of $57,950 remains under observation. The VIX index fell from 60.75 to 20.37, reducing the likelihood of a stock market crash in the near future. It’s worth keeping an eye on the ETH/BTC pair as increased buying of ETH with BTC could make it difficult to return to $65,000. Next week is expected to have a busy economic calendar with a focus on inflation data, retail sales and consumer sentiment. For ETH, we will note the support zones of $2550 and $2415. The pivot level lies at $2905. We recommend partial fixation of purchases or transfer to breakeven for both assets when the price reaches the specified pivot level, and also keep your finger on the pulse of the geopolitical news feed – it is now the main locomotive of movement of the entire crypto industry.
The cryptocurrency market has demonstrated significant resilience and the ability to quickly recover from sharp drops. Despite the volatility at the beginning of the week, Bitcoin managed to overcome key resistance levels and ended the week with growth. This growth was supported by both technical factors and positive news from traditional financial markets. The current situation indicates potential for further growth, especially if favorable technical patterns form on the weekly chart. However, investors should exercise caution due to ongoing market volatility and low liquidity. The coming week with a busy economic calendar may become decisive for the medium-term trend. The key factors will be inflation data and regulatory decisions. The market also remains sensitive to macroeconomic news and stock market sentiment, which requires traders to constantly monitor the situation and be prepared for rapid changes.
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