Market overview of the main cryptocurrency pairs for the current week (from 07/30/2018 to 08/05/2018)

In today's review, as always, we summarize the results of the outgoing week and analyze the overall price dynamics

BTC/USD

After the high was set at 8496.97 USD in the middle of last week, the price entered the correction stage and has been declining all this week, each time breaking through support levels. Bitcoin covered the path from the moment of reversal to growth from the yearly minimum at around 5774.72 USD, which was set on June 29, 2018, to last week’s maximum in 5 weeks. And in this week alone, the price of BTC, in the correction phase, fell by more than half of what it was possible to “earn” during this time. Bitcoin's capitalization at its minimum point was $100 billion and last week reached about $143 billion, and yesterday this figure was equal to $119 billion. The price drop this week was the largest in the last two months. 

However, until the price breaks through the support of the key level of 6777.00 USD, the pair’s fall is taking place as part of a correction in the uptrend. If somehow the bears manage to update the annual minimum, then the pair may return to the global downtrend. Many market participants attribute the fall in prices to the upcoming entry into the market of new, very large institutional funds that are interested in acquiring assets at low prices. If exchange-traded funds receive approval for ETF applications from the SEC in the near future, the price of BTC will rise. And new large whales need to have time to purchase an asset at the lowest price, to which the bears will be able to push. On the other hand, we must understand that large whale transactions can take place on over-the-counter markets and not significantly affect the exchange rate. However, this rate is still indicative for over-the-counter transactions.

Thus, we believe that the price will still break through the key support level of 6777.00 USD and test the zero fibonacci level of 6615.00 USD. But whether they will be able to push the price even lower is not yet clear. Since the beginning of August, the price has been declining without any serious rebounds. Technically, it’s time for the price to correct the weekly decline and the zero fib level is the best fit for this matter. 

ETH/USD

At the beginning of this week, Ethereum came out of a narrowing range against the trend, towards the downside.. Ether fell all this week, without rebounds, until the price reached a low of 397.41 USD. At the same time, a reversal candlestick pattern “Morning Star” was formed. However, decreasing volumes, at which the price recovered from the minimum, indicated the weakness of buyers and did not foretell a resumption of the uptrend. 

The rebound potential was only enough to return the price above the support level of 415.00 USD, but today the price again fell into the zone of the day before yesterday’s low. Although the weekly minimum has not yet been updated, the threat of a re-test of the zero Fibonacci level next week is still relevant. This is the only strong level that can turn a decline into an uptrend. If it is broken, then updating the annual low could send the price along the path of the global downtrend. 

XRP/USD

Ripple is one of the few crypto assets that has shown character since the beginning of the month and tried to stay flat, above the level of 0.430 USD. This was not always possible, and the day before yesterday the pair almost updated the annual minimum, which was recorded on June 29, at 0.424 USD. Judging by the stochastic readings, the pair can still continue to decline and is very close to updating it. If this happens today, Ripple will be the first of the top three MarketCap leaders to hit new yearly lows. This trend will mark the beginning of the market transition from the correction that began last week to a global decline.  

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* All price values ​​are based on data from the BitStamp exchange