Cryptocurrency Market Analysis [August 24]

Cryptocurrency Practical Investment Newsletter August 24

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Here is the ranking of domestic and international exchanges I choose

↓↓

https://bitcoin-newstart.com/bitcoin-account

【Cryptocurrency Market Analysis】

From last week, cryptocurrency prices

have fluctuated (one week) as summarized below

Display: current price (increase/decrease from one week ago)

Bitcoin

550万円 (7％）

Ethereum

370000円(1%）

Ripple140円（-％）

Polkadot3000円（21%）

Binance Coin54000円(20％）

Cardano310円（30%）

Uniswap3200円（-%）

ICP　7200円（4％）

Bitcoin rose sharply from last week's500万円

to550万円

record high.

Bitcoin daily chart

The current price of Bitcoin is 3 months to5 mid-month

and has broken above the neck line of the chart pattern known as the "Head and Shoulders"

that has formed from early to mid-April this year.

The head and shoulders is a chart pattern with three peaks, and the lowest of the three peaks is called the neck line (5,000,000 yen).

Bitcoin has broken above this neck line, and moving forward the target prices of 6,000,000 yen or even 7,000,000 yen are in sight.

Looking at the broad price movement,

April mid this year → 7,000,000 yen

July late → 3,200,000 yen (-54%)

August late → 5,500,000 yen (-20%)

which shows quite large price swings.

Note: the percentages in parentheses are declines from the all-time high.

During the cryptocurrency winter since 2018 (roughly 2 to 3 years),

Bitcoin has experienced drops exceeding 80%.

In this decline, while there has been a drop exceeding 50%,

many people probably did not expect it to rise to 5,500,000 yen so quickly.

Until now, perhaps few could have predicted this.

【Bitcoin's $100,000 Forecast】

Lately, some experts have forecast Bitcoin reaching $100,000 (about 11,00,000 yen).

In 2021, Bitcoin’s ascent showed no signs of stopping, and there were opinions that it would reach $100,000 within the year,

but the drop from June onward undermined that view.

However, with Bitcoin breaking through $50,000, the possibility of a peak around $60,000 to $64,000 has resurfaced,

and the view that $100,000 could be reached within the year has reemerged.

Personally, from Bitcoin’s recent movements

・It has surpassed the 200-day moving average

・It has surpassed the neck line of the head and shoulders

These are strong technical indicators of a bullish trend.

However, experts’ views often miss the mark, so it’s best to treat them as参考程度.

Being wrong can sometimes be a good thing.

If Bitcoin’s price were 3,000,000 yen this year,

there have been times when it rose to 7,000,000 yen or

the opposite can also occur.

【Are there concerns going forward?】

One of the drivers of the current crypto market is

NFT.

NFThas led to a surge in purchases of many digital artworks, drawing in capital.

On August 23, a major financial institutionVISAannounced it purchased

an NFT called CryptoPunk for about 15 million yen

through a reported purchase.

The concern is that a big rise driven solely by money could lead to a sharp fall later on.

NFTs are rising rapidly across many items, but

as with any market, only genuinely valuable items will retain value,

and if non-value items are invested in indiscriminately, it could be a bubble

and cost a lot of value quickly.

That saidNFT trading platforms are progressing with lower fees and easier trading,

and platforms evolving, so price is not the only concern right now.

An art piece called "Ice Rock" has reached a value of 30,000,000 yen,

which can be puzzling to those who don’t understand art.

VISA buying CryptoPunks shows that highly regarded art can also be evaluated carefully.

It is true that there are art pieces that are cautiously assessed and valued.

Even traditional investors face a situation where it is hard to see

which kind ofNFT to invest in, making it difficult to decide, and many investors around me are not investing.

【Big VC Investments in Blockchain Games】

Major venture capital firma16zhas

a blockchain game project led by

YGG.

YGG is famous for providing characters in the blockchain game Axie and earning profits.

In Axie, by using characters called Axies to battle, you can obtain a cryptocurrency

called SLP, which can eventually be exchanged for fiat currency.

Therefore, blockchain games allow you to earn income as a side business within the game.

A16z recognizes that not only the operating company but also players can earn,

and people in developing countries like the Philippines are earning income as a result,

making this a socially transformative development to watch.

For developing countries, many people go abroad to work, but with this kind of game

people can earn income domestically, which is a very interesting social shift for the future.

（Reference） Major VC’s investment in YGGinYGG—

https://bitcoin-newstart.com/a17-ygg

【Polka Fantasy】

This is also crypto gaming news; in Polka Fantasy, a game

has appointed as advisor someone who has served as COO of Final Fantasy

and Dragon QuestCOO (Chief Operating Officer) Okada is appointed

to the project.

Polka Fantasy has not released yet, but it appears to be a game where

As its name suggests, the aesthetic resembles Final Fantasy.

I plan to monitor this game and potential partners.

In standard blockchain games, there is a game-specific cryptocurrency, and in

Polka FantasyXP is used as the in-game currency.

ThisXPcan likely be exchanged for Ethereum and other assets,

and will probably be traded on cryptocurrency exchanges as well.

So, even if you’re not good at playing games, if you identify games with high demand and many users

and focus on that game’s cryptocurrency, it can be a way to invest.

（Reference）

About Polka Fantasy

https://bitcoin-newstart.com/polkafantasy