On Friday, August 26, the Fed announced plans to continue the policy of raising the rate, despite the probable negative consequences. This news triggered a fall in the US stock market. The correlation between the stock market and the crypto market is now at its historical maximum.
Bitcoin reacted with a fall and continued to decline all weekend by more than 10% in total. The whole crypto market cap consequently decreased by more than 7%, taken the BTC and ETH market caps are excluded from the calculation.
BTC
The week started off pretty well. After dropping below $20,000 to $19,500, Bitcoin attempted a recovery. This most probably happened against the backdrop of an overly negative reaction to Jerome Powell's statements.
On August 30, Bitcoin reached $20,500 and made a false breakout of the local downtrend line. However, the sellers were powerful enough to send Bitcoin to an unexpectedly strong correction, which was quickly exited through the formation of a double bottom on the breakdown of the trend line on the hourly timeframe.
Bitcoin retested the downtrend twice and rebounded from the lower border of the rising wedge for the third time.
BTC August candle closed at -14%
ETH
Ethereum doesn’t differ from BTC that much. At the end of last week and over the weekend, ETH fell by -16.5% where it retested the lower border of the falling wedge. As a result of the correction from the lower boundary of the wedge, the upper boundary was broken and fixed above it. At the moment, continued growth is constrained by weak BTC.
ETH August candle closed at -8%
HNT
Over the past week, HNT has lost over 30% in price. The fall continues despite statements about the possible HNT transition to the Solana blockchain to improve scalability. At the moment, the coin is trading at a price of $4.89, and trading volumes are $18.1 million.
DCR
DCR showed momentum growth of more than 25%. This happened after a 24% fall at the end of last week amid Bitcoin's fall and consolidation over a 5 day period. At the moment, the DCR coin is trading at a price of $31.3, and trading volumes are $14.7 million.
SHIB
Against the background of the BTC fall, SHIP also decreased from the price of $0.0001404 to $0.00001171 by more than 16%. After that there was a feeble recovery attempt, but the coin is highly dependent on Bitcoin and is slowly declining accordingly. SHIB is currently trading at $0.0001229.
The content of this post should not be construed as investment advice. We ask you to do your own research. This text is not a guide to action.
