The market showed its strength during the month of August. But on September 2, a flash crash caused investors to doubt the market. Bitcoin erases in one hour its gains of the past week, while Ethereum, more bullish, resists better with a weekly performance of 15%. Generally speaking, there is a certain effervescence, not to say euphoria, around the Ethereum ecosystem since the post-Covid recovery. In particular, almost all projects/tokens linked to DeFi (decentralized finance) are experiencing impressive, even stratospheric increases. This is the case for example of Aave (LEND) with +96% in one month, Yearn.finance (YFI) with +615% or UMA with +344%.
Performances that are impressive but not without risks. At the origin of the craze, platforms allowing liquidity providers to generate significant returns and receive governance tokens as rewards. From a technical point of view, the rise is brutal on most of these projects. In recent days, the multiplication of "clones" of the most successful DeFi tokens has prompted caution. The whole question is whether this DeFi "bubble" is about to burst or has left to last for some time to come. Here is our market analysis.
According to CoinGecko, market capitalization is $380 billion, up from $350 billion at the beginning of August.
Bitcoin’s dominance drops sharply to 54.5%, compared to 59% at the beginning of the month.
The best performance of the top 50 is to be attributed to UMA with +193% over one week.
We invite you to discover our analysis in video (in french and dated from September 1st) :
Bitcoin (BTC)
Coinhouse recommendation: Buy on breakout
Bitcoin stands at €9,700 (11,400$) on September 2nd, signing a stable performance after today’s flash crash. We observe that the price of Bitcoin is still evolving in the wide resistance zone we had identified between €9,400 and 10,400 ($11,000/12,300). A very nice intermediate support formed on August 27 on the €9600 ($11 300$) level, reinforcing the probability of a continuation of the uptrend. The €10,000 ($12,000)level nevertheless held up well on September 1. We now need a clear bullish breakout of this level in the daily timeframe to have a buy signal. If current market sentiment continues, the next profit-taking target is much higher, at the €12,200 ($14,500) level.
However, today’s flash crash reminds us that we shouldn’t overlook the scenario of a bearish reversal. If the current rebound fails below €9900 ($11,800), it will be a sell signal, and then buy back in an optimal zone between €8600 and €8800 ($10,200 and $10,500).
Ethereum (ETH)
Coinhouse recommendation: Wait
Ethereum (ETH) continues to drive the market up and performs better than Bitcoin. Despite the flash crash, it is up 15% this week to €375 ($445) on September 2nd. The break up from the €380 ($440) level remains very positive for a continuation of the trend. There is currently no favorable configuration for purchases from a technical point of view. The next profit-taking target is in a price zone between €416 and 438 ($495 and $520).
Going back below the 380€ ($440) level in daily timeframe would of course be a sell signal. A first buyback zone will then be between €260 and 280 ($310 and 340).
Chainlink (LINK)
Coinhouse recommendation: Buy on support
Chainlink (LINK) continues to show a solid uptrend despite rejection following its new high of €17 ($20). LINK is up 8% on the week at €12.80 ($15.05). The underlying trend remains bullish and buybacks may occur, but on well identified supports. The first is located in a zone between $11.60 and $13.35. The second is located even lower, in case Chainlink makes a 3-step correction. This second price zone is located between $8.10 and $10.00.
Top & flops of the week (top 50 marketcap)
Tops
1- UMA : +196% 2- Yearn.finance (YFI) : +115% 3- NEM (XEM) : +59%
In this article, all information is given for information purposes only, even if it has been established from serious and reputable sources. It does not constitute an offer by Coinhouse to buy or sell digital assets, or an offer to provide services on digital assets, nor does it constitute advice, encouragement or a recommendation to operate on the digital assets in question. It constitutes simple information over which the user retains absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/2WORw2Q) and accept the various risks listed and defined on our legal warning page (https://bit.ly/2CXas8F).
Banks and Institutions Tesla considers accepting Bitcoin as payment for cars again Elon Musk’s firm Tesla is likely to start accepting Bitcoin again in exchange for its products and services, the electric car company indicated on Monday. Tesla had suspended cryptocurrency transactions in May citing environmental concerns. A quote in a quarterly report says the […]
Bitcoin’s price has been on a spectacular uptrend for the past week. The crypto asset is up 32% over seven days and is trading around the €33,500 ($40,000) mark on 28 July. Buyers have clearly regained control, particularly following a sudden price movement on the night of 25 to 26 July, which we return to […]
Bitcoin bends but does not break. That could be the adage of the last fortnight in the cryptocurrency market. However, the technical situation remains poorly oriented, with sellers dominating since the beginning of July. Bitcoin is down 5% in a week and is hovering around €26,300 ($31,000) on July 21. On July 20, the price […]
Bitcoin’s price is not picking up any particular strength at the beginning of the summer. On the contrary, volatility is at its lowest point in the year 2021. The king of cryptocurrencies is near-stable on a week, down slightly by 2.9% and trading around €29,000 ($35,000) this July 7. The long-term trend is still bullish […]
After the sudden drop suffered by the cryptocurrency market on May 19, June is ending with a majority of investors left wanting more. With a slight variation of -7% over a month, Bitcoin is trading around €29,000 ($35,000) this June 30. The last few weeks have been dominated by fear and doubt, with China’s repressive […]
We are once again witnessing a surprising week in the cryptocurrency market. After several days of decline, Bitcoin seemed to lose the important support of €25,000 ($30,000) on the afternoon of June 22. But that was without counting on the reaction of buyers who quickly pushed the price back above $30,000. After this price action, […]
The situation is easing in the cryptocurrency market. Bitcoin has been rebounding nicely over the past week, rising nearly 20% in seven days to trade around €33,200 ($40,000) on June 16. However, we will see in the detailed technical analysis that the price has returned to a key level, with the $42,000 (€34,600) resistance to […]
A wind of panic blew again at the beginning of the week on the cryptocurrency market. Negative news stories have multiplied, contributing to undermining investor sentiment. Yet Bitcoin remains in its range between €24,500 and €32,7000 ($30,000 and $40,000) and is trading this June 10 around €30,800 ($37,000). There is no doubt that the $30,000 […]
After the purge of May, the last few days are plunging the cryptocurrency market into a very indecisive situation. Bitcoin is down about 3% in a week to around €30,500 ($37,000) on June 2. What to remember: Bitcoin’s price has actually been hovering between €24,500 and €32,7000 ($30,000 and $40,000) since May 19. Technically, a […]
Investing in crypto-assets carries risks of liquidity, volatility, and partial or total capital loss. Crypto-assets held are not covered by deposit and securities guarantee mechanisms.
Coinhouse SAS with a capital of €210,000, RCS Paris 815 254 545, headquarters: 14 Avenue de l'Opéra 75001 Paris – support@coinhouse.com. Registered with the AMF for activities related to the purchase/sale of digital assets against legal tender, the exchange of digital assets for other digital assets, and the custody of digital assets for third parties under the registration number: E2020-001.
Coinhouse payment solutions
Company registered with the Paris RCS under the number 914 384 557, registered with the Prudential Control and Resolution Authority as a payment service agent under the number 727503 of the electronic money institution Treezor, headquartered at 33 Avenue de Wagram, 75017 Paris.
General conditions, disclaimers and legal documents.
