A bite-size overview of digital asset market trends for this week
Crypto traders will likely to face another week of tight range trading after some strong selloff pressure in major cryptocurrencies last week. At the time of writing, BTC traded above the $10300 level, while ETH, XRP, and LTC rebounded more than 6% in early Monday trading in Asia.
Bakkt received approval
Market sentiment has slightly improved after Bakkt was greenlighted by the regulator. The crypto trading platform of Intercontinental Exchange was granted a license to operate as a limited liability trust company. The move would allow more institutional money to enter the BTC futures markets.
Crypto in Shenzhen, China
Meanwhile, China is on the fast lane when it comes to crypto development. Over the weekend, the country announced an ambitious plan to remodel Shenzhen as a “global model city with distinguished competitiveness, innovation capability and influence” by 2035, and crypto research is part of the plan. The statement said the country will “support innovative applications such as digital money research and mobile payment in Shenzhen.” The news came just a week after the PBoC claimed that China is ready to launch its state-backed cryptocurrency.
Speech by Jerome Powell
In the US, the annual Jackson Hole gathering will kick off on Thursday the 22nd. US Federal Reserve Chairman Jerome Powell is expected to give a keynote speech on Friday to address markets’ concerns over the recession signal occurred in the bond markets. On Wednesday, The FOMC will be releasing its July meeting minutes as well. Any of these events could shift the tide of market sentiment.
OKEx Data Highlights
It’s worth noting that the BTC Long/Short User Ratio by OKEx rebounded from the weekend low of 1.03 to 1.18. Which could mean traders’ sentiment has slightly recovered, and the ratio of users who has net long position has slightly increased. However, the ratio has reached 1.57 just last Thursday (14/8), that followed by a selloff that sent BTC prices to below 10000.
Meanwhile, OKEx’s Top Trader Sentiment Index, which reflects the percentage of long vs. short positions held by the top 100 traders across the OKEx’s platform, shows that sentiment has slightly shifted over the weekend, with negative bias has somewhat gained traction.
Movers & Shakers
Here are some highlights from our trading platform.
- The 4-hour chart of BTC/USDT shows that 10,500 seems a valid short-term resistance after the pair reached the low near 9500 last week.
- An ascending triangle pattern has formed, a breakout could be within the day.
- However, both volume and DMI suggest that the momentum seems remained low at this moment.
- The 4-hour ETH/USDT chart may suggest the recent rebound of the pair could almost come to an end.
- The pair has been in a downtrend since early August, that followed by the 50-SMA which could see as a near term resistance.
- Also, the short-term RSI has reached near the overbought level.
- At the time of writing the pair surged over 30% topped the OKEx mover list.
- Referencing the previous price surges, 0.0013 seems a significate resistance on a daily chart.
- RSI also suggests that the recent bull run may almost come to an end.
- We’ve mentioned that many of the altcoins are still in a downtrend in a 4-hour chart, but CTXT/USDT seems already produced a breakout, the pair was back to the previous range trading area between 0.110 to 0.123.
- However, the DMI shows that the positive direction momentum seems running out of steam and the negative momentum has started to pick up.
- A short-term price correction is expected before the pair continue the uptrend.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
Follow OKEx on: