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Bitcoin ($39k) and Ethereum ($2.7k) price analysis and trends
Bitcoin ($39k) and Ethereum ($2.7k) price analysis and trends
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Bitcoin ($39k) and Ethereum ($2.7k) price analysis and trends

By R.L. Bryer - 5 Aug 2021

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Bitcoin analysis

Bitcoin cracked a 4 day slide of daily closes in red figures on Wednesday and closed the daily candle +4.05%.

The below chart from OptimoomFX shows how strong support at $36k bitcoin is and shows the likelihood for a re-test of the top of the range around $42k if bulls can push the price back over $40k.

It almost looks like desperation time for bears on the 1D chart to once again get the price below $35k and get a significant close on an important timescale. Otherwise, bulls could soon be sending the price to the high $40k’s.

One of bitcoin’s most popular metrics for sentiment across the market shows BTC with a current reading of 50 and +8 from yesterday’s reading.

Sentiment across the market seems to be picking up again as the total market capitalization is back over $1.67 trillion and bitcoin dominance makes up 44.1% of the aggregate market cap.

BTC’s 24 hour range is $37,519-$39,965 and the 7 day range is $37,519-$42,628. Bitcoin’s 30 day average price is $35,197.

Bitcoin closed Wednesday’s daily candle worth $39,754.

Ethereum

Ether’s back to ripping upward and finished Wednesday’s daily candle +8.65%.

EIP-1559 is finally upon us and scheduled to ship to ETH mainnet on Thursday when miners generate block number 12,965,000. The improvement proposal is designed  to decrease short-term volatility in demand for transaction space within a block because that problem creates volatility in transaction fees. With the new proposal some of the volatility instead translates into volatility in block size.

We’ll know soon whether EIP-1559 is priced in and whether or not it impacts the Ethereum network for better or worse.

The below chart from T_V_TreeTrader shows a strong breakout from Ether with overhead resistance at $2,800.

Bullish traders have support resistance at $2,400 and that will be an important level to defend against bears if the market tests it again.

Beneath $2,400 bulls have support at $2k and strong support at the $1,700 level.

ETH’s 24 hour range is $2,459-$2,768 and the 7 day range is $2,284-$2,768. Ether’s 30 day average price is $2,195.

Ether closed Wednesday’s daily candle worth $2,725 and has finished in positive figures for 13 out of the last 15 days.

R.L. Bryer
R.L. Bryer

Since 2009, the onset of the bitcoin network, R.L. Bryer has been covering the space. He is the author of Blockchain: Project Renaissance Volume I and II. He's also been the guest of countless bitcoin and cryptocurrency related podcasts throughout the world. Every opportunity, he speaks on or writes about Austrian Economics and how bitcoin is the world's preeminent money.

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