Written by Metal Team

On August 9, 2021

Market Report August 9 2021

Bitcoin (BTCUSD) (12-hour)

The king crypto has finally broken out of the two-month range and is showing serious strength.  The volume looks strong and holders are celebrating in hopes that the bull market has resumed.  While it’s great to see a breakout of the previous range of $30k to $40k, the market isn’t in the clear for new all-time highs just yet. 

As we approach multiple key levels in the higher $40k’s and low-to-mid $50k’s, the reactions will be telling.  Bears who are looking for swing shorts will most definitely be eyeing the bearish optimal trade entry of $52k to $57k, as they look for a ride deeper into the $20k’s. 

If bulls remain in charge and maintain the momentum, then a new all-time-high is in the cards.  For that to happen, we would want to see some lower retests, or “higher lows” as some traders call it.

Ethereum (ETHUSD) (12-hour)

ETH looks similarly as strong as it’s broken out of its range with conviction.  The ETHBTC chart also looks equally as bullish and could be a sign that the “king DeFi” coin is ready to outperform Bitcoin in the coming weeks and months. 

Market participants should remain level-headed and realize that there’s key levels between $3,300 and $3,800 that must be cleared before moon celebrations can commence.  Otherwise, things could get ugly and three-digit ETH could be in the works.

Fundamentals & Correlations(3-day/1-day)

While Bitcoin and Ethereum have shown some serious action on the charts, the same can’t be said for Bitcoin dominance and the US Dollar Currency index.

Bitcoin dominance is hovering around the same levels it has been for months which is an indication that the market is moving in tandem.  If ETHBTC continues to show strength, we would expect BTC dominance to drop and ETH and other altcoins to go on serious runs.  However, if BTC wants to go on a tear, dominance would accelerate higher and is definitely a possibility.

The US Dollar currency index is showing only minimal moves and continues to bounce between local supports and resistances.  There are many macro factors playing into the Dollar’s value, but a trend upwards or downwards has yet to be established.

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