Bitcoin to hit $14,000 by the end of the summer?

Despite a bearish movement this weekend, the bull market that began on July 23 in the cryptomarket seems to be settling down. Over the last seven days, Bitcoin has risen 2.6% and is trading at €9600 ($11,400) on August 5, 2020. This comes after a new, very momentary annual high of around €10,300 ($12,100).

The rise is more impressive for Ethereum (ETH), which continues its rally and appreciates by 22% over the week. Performances are also on track for XRP with +30% or Chainlink (LINK) with +32%. It is clear that the trend seems solid and that the slightest price retracement is seen as an opportunity to position oneself for buying. Thus, the objective of rapidly returning to the 2019 highs for Bitcoin at $14,000 seems more plausible than ever.

All this in a context where the dollar is weakening, between liquidity injections from the US central bank, an uncertain economy and tensions with China. At the same time, gold price crossed the $2,000 threshold for the first time, reflecting investors’ fears for the future. Nevertheless, the prices of the main cryptocurrencies are still devoid of any technical resistance. We take stock in our analysis of the relevant price levels to position ourselves to buy, or on the contrary, to take profits.

• According to CoinGecko, market capitalization continues to expand, at $350 billion, up from $330 billion last week. That’s impressive.

• Bitcoin’s dominance drops to 59%, down from 64% last week. This is a statistic that will have to be monitored.

• Synthetix (SNX) was the best performer in the top 50, with +37% over the week.

We invite you to discover our analysis in video (in french and dated from August 4):

Bitcoin (BTC)

Coinhouse recommendation : 
Buy

• As long as we don’t see strong signs of a trend reversal, the objective will be to follow this uptrend. Thus, after the sell-off on August 2nd, the opportunity to buy back on the €9600 ($11,000) level is being considered, but is not without risk. There is indeed an intermediate resistance in the €9700/9800 ($11,300/11,500) zone which could temporarily reject the price. If the corrective movement is initiated, any return of the price to the €9200/9300 ($10,200/10,400) area will be a strategic area for buybacks/reinforcements in case of a signal.

• If the rise continues immediately, then the moderate risk of a further rejection on the $12,000 level should be watched for. If this resistance is broken, technical analysis then gives us much higher profit-taking targets, starting at €12,200 ($14,500).

Ethereum (ETH)

Coinhouse recommendation: 
taking profits

• Ethereum (ETH) continues to dominate the market among the most capitalised stocks. ETH is up 22% this week to €332 ($392) on August 5. But technical analysis shows that, following this stronger rise than that of Bitcoin, Ethereum’s price is certainly in a zone of strong resistance: between €325 and €360 ($380 and $420). This zone corresponds to an old support dating from April 2018, but clearly visible on the weekly time unit. We therefore advise to take partial profits on these price levels. If the price then offers retracements, the levels between €260 and €275 ($300 and $322) then between €235 and €24€ ($275 and $290) will be favourable for buybacks and thus play a continuation of the trend.

• The scenario of a direct continuation of the price rise, without retracement, is less likely but of course possible. If this powerful rise takes place, the next level we’ll be looking at for further profit taking will be the €425 ($500) level.

Chainlink (LINK)

Coinhouse recommendation: 
Hold

• Chainlink (LINK) continues its exceptional bullish rally with +32% this week at €8.10 ($9.50). This comes after the price offered a retracement between €5.30 and €5.80 ($6.05 and $6.60) on July 27, which was a signal to strengthen or reposition for buying. The $10 level is approaching and Chainlink could go for it during August 2020. The technical analysis indicates a next partial profit-taking zone between €9 and €10 ($10.70 and $11.80). We will watch for a possible bearish divergence on the RSI indicator as we enter this price zone.

• The €5.30 ($6.05) level must now be kept to maintain the uptrend.

Top & flops de la semaine (top 50 marketcap)

Tops

1- Synthetix (SNX) : +37%
2- Chainlink (LINK) : +32%
3- Ripple (XRP) : +30%

Flops

1- Ampleforth (AMPL) : -48%
2- Elrond(ERD): -22%
3- Cardano (ADA) : -4%

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