Cryptocurrency Market Analysis [July 28 Edition]
There has been movement in Bitcoin.
It has been converging around just under 1,000,000 yen,
but the price suddenly moved upward toward 1,100,000 yen
and is heading in that direction.
(Today the price has risen to 1,180,000 yen)
Bitcoin 4-hour chart
Bitcoin rose rapidly from a price that had been converging upward
to clearly move higher.
The reason for this rise isn’t clear, but
personally I think some large investors are waiting for the Ethereum upgrade
to complete and are considering at what timing to push the price up,
and this timing might have been that moment.
In fact, Bitcoin rose from 1,000,000 yen
to 1,090,000 yen,
but Ethereum’s rise has been even larger.
Regarding Ethereum, some investors who were anticipating
the upgrade noted as Ethereum 2.0
and had been waiting to invest
saw this timing and pushed it up all at once,
so there are probably fewer people waiting for the next timing.
My thinking on Ethereum investments
will be introduced later in this article.
Sorry for deviating a little, but
let’s confirm Bitcoin’s daily chart.
Bitcoin daily chart
Bitcoin price at 1,100,000 yen
is a psychological milestone,
and a red horizontal line is drawn.
This line corresponds to the high in May this yearand the high before the March crash.
It was not possible to break May’s high
in the past, but if this line is surpassed
the next target would be around 1,300,000 yen (horizontal line),
so I feel there could be upside ahead.
[Ethereum Chart Analysis]
Ethereum, which has recently shown a particularly large rise,
Ethereum
Ethereum 4-hour chart
It was range-bound between 22,000 and 25,000 yen,
but from the 25th it surged upward rapidly.
Buyers kept buying and it moved up quickly,
but this suggests there were large investors timing this move.
As for the drivers of Ethereum’s rise,
as previously noted,
・Ethereum upgrade, Ethereum 2.0
and
recently heated DeFi tokensleading to reallocation into Ethereum
has been cited.
For example, in DeFi, you can lend and borrow cryptocurrencies, but when you hold ETH you may convert it to high-interest DAIs or USDTs.
Many have lent it out to earn high interest,
but as more investors moved from DeFi tokens to Ethereum,
Ethereum soared further.
As reported by CoinPost,
the selling of DeFi tokens and buying Ethereum have become negatively correlated,
meaning when DeFi tokens fall, Ethereum rises.
This has been the result.
Next, Ethereum’s daily chart
Ethereum has broken through the high of 29,000 yen
and rose toward last year’s high near 34,000 yen.
Last year’s high was around 36,000 yen, but since the period was short,
if we consider the real high, it would be around 33,000–34,000 yen.
Indeed, you can draw the red horizontal line at that level.
Investors who missed this rise may be waiting for Ethereum to dip briefly before entering.
[Cardano’s rise is also notable]
Besides Ethereum, another cryptocurrency that rose substantially is Cardano.
It has risen by 18% in the past week and even temporarily surpassed Bitcoin Cash in market cap, rising to 5th place.
It is now 6th, but overtaking Bitcoin Cash might not be far off.
As for Cardano,
the Shelley upgrade will be performed recently on the
29thday.
Within 2020, Cardano holders are expected to be able to stake,
and like Ethereum, Cardano’s price rise is thought to be linked to
the POS approval system.
Cardano’s chart analysis and
the details of the drivers are summarized here.
https://bitcoin-newstart.com/btc0726
[In the United States, Banks Will Be Able to Store Crypto]
The U.S. regulator with authority over currency, the OCC (Office of the Comptroller of the Currency),
has effectively allowed U.S. national banks to offer cryptocurrency custody services.
This is good news for cryptocurrencies and could help the U.S. regain its footing in the industry.
In other words, if banks aim to store cryptocurrencies, they may begin acquiring specialized custody firms likeBitGo,
and so on.
The day when banks store crypto as an asset may not be far off.
Details on BitGo here
https://bitcoin-newstart.com/bitgo
[Considering Ethereum Investment]
We have been advising gradually allocating funds into Ethereum,
but this timing has seen a significant rise.
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