TL;DR

• BTC is Up & ETH is Up

• BTC under-performed ETH this week 

• Bitcoin dominance is up

• The hot coin we look at this week is $KAS

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BTC & ETH Market Update 📈

Crypto is down this week, with BTC being up 0.1% and ETH up 1.3%:

Bitcoin dominance has increased over the week, rising from 53.1% to a peak of 53.56% and ending at 53.2%. Bitcoin is up due to strong bullish momentum, significant short position liquidations, successful breakouts above key levels, positive market sentiment, and ongoing institutional interest.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

Ethereum (ETHUSD) Analysis:

Ethereum (ETHUSD) closed at $3,176.75 on August 1, 2024, down by $114.08. The medium-term analysis indicates a break through the floor of a rising trend channel, suggesting a slower rise or horizontal development. The currency has support at $2,900 and resistance at $3,900. Volume tops and bottoms poorly correlate with price movements, and the volume balance is negative, indicating weakness. Short-term volatility is 1.93%, with a 3.47% drop in one day and an 18.90% decline over 66 days.

Bitcoin (BTCUSD) Analysis:

Bitcoin (BTCUSD) closed at $63,895 on August 1, 2024, down $2,164.77. The short-term outlook is negative, having broken through the floor of a rising trend channel. Support is at $57,000 and resistance at $71,000. Volume tops and bottoms poorly correlate with price movements, indicating weakened strength. The medium-term view suggests a weaker initial rising rate within a rectangle formation between $54,390 and $69,321. The long-term trend remains neutral with continued investor optimism.

Expected Trading Ranges:

• Ethereum (ETH): Support: $2,900 Resistance: $3,900

• Bitcoin (BTC): Support: $54,390 Resistance: $71,000

Market Outlook:

The market is experiencing heightened volatility with cautious sentiment. Bitcoin is testing critical support at $57,000 and facing resistance at $71,000, indicating potential for further declines. Ethereum's price has dropped post-ETF launch, with support at $2,900 and resistance at $3,900. Both cryptocurrencies show negative volume balances and decreased liquidity. Investors should monitor these key levels closely as current market conditions suggest potential instability and uncertainty.

BTC/ETH ratio has seen a decrease:

Over the past six days, the BTC to ETH conversion rate has experienced a slight decrease. Starting at 20.71 ETH per BTC on July 26, the rate declined to 20.33 ETH per BTC on August 1. This represents a net decrease of 1.83% over the period. Despite minor fluctuations, the overall trend indicates a reduction in the BTC value relative to ETH.

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Hot Coin: KAS 🔥

In this week’s newsletter, we dive into Kaspa’s token with the ticker: $KAS.

The price action and volume have been growing consistently and don’t seem to stop any time soon:

What is the project about?

Kaspa is a blockchain platform that combines a proof-of-work consensus mechanism with a blockDAG architecture, allowing multiple blocks to coexist in parallel.

This innovative structure addresses the high orphan rate found in traditional blockchains. Drawing inspiration from Bitcoin, Kaspa maintains core principles such as the PoW mining method, a deflationary economic model, and decentralized decision-making processes.

By implementing the GHOSTDAG protocol, Kaspa ensures secure operation, high block rates, and rapid confirmation times, positioning itself as a robust and scalable solution in the blockchain space.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter:

• Innovative Consensus Mechanism

• Scalability and High Block Rates

• Unique Monetary Policy

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