Cryptocurrency Market Analysis [August 11 Issue]
Bitcoin has risen from last week's price in the 1,100,000 yen range
and has surpassed 1,200,000 yen.
Bitcoin 4-hour chart
Bitcoin briefly surged in early August
past 1,200,000 yen and up to around 1,300,000 yen
before it dipped.
However, the pace of the rise was so fast
that it fell back to the 1,100,000 yen range afterward.
Nevertheless, in this current rally,
the price has clearly higher lows and higher highs,
so compared to the previous rise, it shows a more stable price movement.
Bitcoin daily chart
On the Bitcoin daily chart,
it has already broken through the levels seen before the mid-March crash.
The current price of 1,240,000 yen
is already at the bubble level of the end of 2017.
Bubbles involve short-term large price movements,
so there is a question of whether Bitcoin can reach the 1,500,000 yen high of 2019
as a target for 2020.
Recently, DeFi projects have been rising with large trading volumes,so this rally could trigger further upside as well.
Attention is warranted.
【Ethereum has been flat since last week】
Ethereum rose sharply in the week before last,
but currently it is moving sideways compared to last week.
Ethereum daily chart
Normally, when prices rise so quickly in a short period,
profit-taking selling would cause a sharp drop,
but even when it falls, buying resurges and the price tends to stay around the same level.
This situation shows a very solid and stable
price movement.
The red horizontal line drawn on the chart marks
the level before the mid-March crash this year.
Additionally, it has already surpassed the 2019 peak of 33,000 yen.
Although Bitcoin has not yet surpassed the 1,500,000 yen high of 2019,
it is difficult for Ethereum to rise above Bitcoin's higher market capitalization;
thus, Ethereum tends to rise less and fall more strongly,
as a characteristic.
For Ethereum, the level of the bubble mindset is
felt after surpassing 50,000 yen.
【Decentralized exchange UNISWAPoutruns domestic exchanges in trading volume】
“DeFi (decentralized finance) is on the rise. One of the decentralized exchanges (DEX) operated without a central administrator, Uniswap, has expanded trading volume, and its 24-hour turnover reached around 45 million dollars (about 4.8 billion yen).”
According to the crypto benchmark site CoinGecko, this figure is comparable to or higher than the 24-hour spot trading volumes on well-known domestic exchanges such as bitFlyer (about 31.8 million dollars), Binance US (about 36.5 million dollars), Gemini (about 21 million dollars), and others at the time of writing.
As shown above, the trading volume on decentralized exchanges has risen very high.
Uniswap has also announced a funding of $11 million, making future developments very exciting.
There have been some hacks reported on decentralized exchanges recently, but they are generally considered highly secure, and transactions can be conducted directly from users’ wallets.
From this news, you can sense what will be watched for going forward.
【Ethereum testnet has started】
A testnet, the precursor to Ethereum 2.0, has started.
The testnet is the Medalla phase, planned to be the final stage.
This rise involves using more than 32 ETH for staking, but since this is a testnet, you cannot receive ETH; you will receive a native token instead.
Ethereum’s release this year also looks more likely, making future progress exciting.
Regarding Ethereum, given its recent large rise, those considering buying should be cautious.
＊I will research and follow up about the native token.
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