Bullish optimism prevailed as the leading sentiment of the day after Bitcoin price retraced upwards toward the critical $40,000 level. Notably, the Bitcoin price rally to highs of $39,965 on August 4 spurred bullish activity from many Altcoins. At the time of writing, the majority of Altcoins were seen trading in green with a handful posting double-digit gains.
Contributing to this, Gary Gensler, the chair of the United States Securities and Exchange Commission was noted to have made positive remarks about the crypto industry in his latest ”crypto speech”.
Deducting from BTC price action, Cryptotrader Rekt Capital forecasts an increasingly anticipated bullish “golden cross” event, noting that BTC has enjoyed such a recovery that the two Death Cross EMAs have begun to flick upwards.
“If $BTC continues to hold these highs or rally higher then a best-case scenario Golden Cross could occur in late August.”
Bitcoin was trading at $39,867 as of press time
Why Investors Should Pay Attention?
5th of August is Ethereum’s big day as the London hard fork ushering in EIP-1559, is expected to arrive. While many are quite excited about the supposedly bullish London hard fork, some analysts are taking a cautious stance and foresee little price reaction after the upgrade.
Cryptoanalyst cum economist Alex Kruger seems to be of the latter school of thought. However, so far the expectations of the hard fork have partly buoyed Ethereum price as it has marked 13 out of 14 days in the green since July 21.
Market analysts have cited two potential bullish formation patterns which may yield more upside for ETH. This includes the double bottom pattern formed near the $1,700 range twice and then, a falling wedge formation. Ethereum traded at $2,740 as of press time.
Cardano (ADA) is another coin under investor’s radar. Recent news has it that Bitpoint is already making plans to list ADA later in August. This is quite notable as Japanese regulators have strict rules for listing cryptocurrencies on exchanges and only a small number of coins are allowed to be listed in the country. A Twitter user and crypto trader sees ”Interesting few weeks ahead for Cardano”.
However, Crypto trader and analyst Rekt Capital, noted that ADA needs to close above its weekly close of $1.30 to confirm its long-term bull trend. The sentiment for ADA remains mixed amid head and shoulders formation noted by the veteran analyst, Peter Brandt. ADA was trading at $1.38 as of press time.
The biggest NFT token by market capitalization, Theta price action is worth a watch in the next trading sessions as a resurgence of buyers has pushed the token towards a retest of the MA 50 barrier. How Theta price reacts to the barriers mounted by the moving averages will determine how far it will go in the near term.
On the other hand, Theta plans to introduce a TNT-20 token known as TDROP, a coin used to incentivize purchases on ThetaDrop NFT Marketplaces, targeted for launch on February 1, 2022. Users can “NFT liquidity mine” TDROP tokens in addition to earning them via primary or secondary purchases through either the ThetaDrop NFT Marketplace or a third-party NFT DApp that is built on the NFT marketplace smart contract. Theta was trading at $6.14 as of press time.
DeFi tokens such as Compound (COMP, +17.89%) were seen pushing higher as Bitcoin sought to reclaim the $40k ground. COMP had a major breakout on August 4, surging from lows of $391 to highs of $492, gaining nearly 25%.
The recent growth in the platform alludes to the price action. On August 4, the compound finance protocol stated that ”$MKR, $AAVE, $SUSHI and $YFI have been added to the Compound protocol”
Alongside this, Bitcoin Events’ 2nd annual DeFi Conference hosting over 25 sessions and 40+ DeFi and NFT industry leaders while showcasing the opportunities and trends in Decentralised Finance (DeFi) and Non-Fungible Tokens (NFTs) kicks off this Thursday, 5 August 2021.
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