Weekly Cryptocurrency Market Brief

Bitcoin climbed to higher levels over the past week, registering higher lows and higher highs in the process. There are several indicators of a reversal in the big picture trend, including a definitive weekly candle break and close over the months-long downward trend which stretches back to April 2021. The break of the trend took place after a healthy, 38.2% Fibonacci retracement on the daily chart, after registering 10 green daily candles which represented a stunning rise from $29.4k to $42.3k between July 20th and July 30th, 2021.

Cream (CREAM) broke a strong resistance level at $180, stretching back to February 2021. Now holding this level as support, further movement to the upside seems likely. However, a series of red and green candles over the past week reflects a consolidation pattern which is understandable as the digital asset is currently in a price range it has not experienced for about half a year. Breaking and holding above the next resistance level at $200 is necessary for a continuation of the uptrend for CREAM, and it is notable that although the price rose over this level in the past week, the body of each daily candle during this period closed at or below $200.

Komodo (KMD) has been registering higher lows and higher highs since late July. Having tested the $0.95 resistance three times since July 7, 2021, it is now looking to continue its bullish momentum to the upside. Since June, it has traded in the $0.50 to $0.95 range, after falling from its highs reached in May at over $4 a token. It has much room to move in the short and middle term, especially that its high this year alone has been about $4.75, which it reached on April 8, 2021.

Internet Computer (ICP) has finally broken the $55 resistance, having traded under this level since the middle of June. Should it hold this level as support, a move to the upside seems likely, with another resistance level at $67 representing an obstacle in its path. It has a long way to go if it were to make up for the heavy losses it has sustained since May, having then fallen from highs just short of $500 and reaching lows at under $30 at the end of June 2021.

(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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