Weekly Cryptocurrency Market Brief

After the previous week’s bullish engulfing candle which was printed on the weekly chart, Bitcoin continued its ascendancy and closed at $39.8k, notably above an important resistance level at $38.9k. Holding above the latter level could signify a continuation of the bullish trend, albeit with an expected retracement in the market in light of a stunning series of ten consecutive green candles printed on the daily chart. Market sentiment has been positive, fuelled by the rapprochement between Elon Musk and prominent Bitcoin advocates such as Twitter CEO Jack Dorsey and ARK Invest CEO Cathie Wood, during the Bitcoin virtual conference, The B Word, held on July 21, 2021.

Kava (KAVA) has made considerable gains over the past week. Having broken a strong resistance of $5.1 which it then held as support, it now seeks to reach the previous high attained in the spring, when it traded at just over 8$ on April 6, 2021. It had formed strong market structure since May, as it consolidated and held support over the $2.7 level. With successive higher lows and higher highs being printed on the daily and weekly charts, it is evident that the trend is assuming a bullish character in the current period.

Chainlink (LINK) was subject to a pivotal reversal during the past two weeks. Having reached a low of $13.5 on July 20, the digital asset has since almost doubled in price, reaching $24 on August 1, 2021. Mirroring the same initial behaviour as Bitcoin, its upturn had embarked with a bullish engulfing candle printed on the daily chart on July 21, before rising to break a significant resistance level at $20. Holding above this level could pave the way for more bullish price action for Chainlink in the market.

In similar fashion to Chainlink, Polkadot (DOT) also spectacularly reversed off its bottom at $10.5 per token, which it reached on July 20, 2021. It broke an important resistance level at $17, reaching a local high of $20 on August 1 and printing a large green candle on the weekly chart. The bullish price action had also begun with a bullish engulfing candle on the daily chart, printed on July 21. A possible retracement is on the cards, and the potential formation of higher lows after its recent local high could lead to further bullish movement in the market.

(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.

 

ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)

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