TL;DR

• BTC is down & ETH is down

• BTC under-performed ETH this week 

• Bitcoin dominance is up

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

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BTC & ETH Market Update 📈

Crypto is down this week, with BTC being down 4.3% and ETH down 2.1%:

Bitcoin dominance has increased over the week, rising from 54.3% to a peak of 54.59% and ending at 53.8%. Bitcoin dominance 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.

Bitcoin has been stuck in a narrow range between $58,000 and $62,000 since August 8, unable to break free. While the S&P 500 and gold are nearing record highs, Bitcoin remains 19.5% below its March peak.

The cryptocurrency's lackluster performance is exacerbated by political uncertainties and strong economic data, which have dampened its appeal.

Despite Ethereum’s 13% gain over the past week, analysts warn of potential further declines.

McKenna from Arete Capital suggests Ethereum may struggle to break above $2,800-$2,900, and could remain range-bound through August and September.

Peter Brandt sees two scenarios: a rise above $2,960, which could offer a good exit for longs, or a drop to $1,650 if a bearish pattern persists.

Ethereum (ETHUSD) Analysis:

As of August 16, 2024, Ethereum (ETH) is at $2,578.97, having broken below its rising trend channel, signaling a potential further decline to $2,116 or lower. Immediate support is at $2,200 and resistance at $2,900.

Low volume at peaks and high volume at bottoms suggest weakness, with recent market statistics indicating increased volatility and liquidity concerns. Caution is advised, monitoring key levels closely.

Bitcoin (BTCUSD) Analysis:

As of August 16, 2024, Bitcoin (BTC) is at $57,866.00, showing weak short-term performance within a falling trend channel. Immediate support is at $55,200, resistance at $61,400, and a potential short-term reversal is indicated by the RSI.

The medium-term trend is neutral, with support at $53,893 and resistance at $68,886. Long-term, Bitcoin remains positive with support at $45,000 and resistance at $70,000. Increased volatility and liquidity concerns suggest caution.

Expected Trading Ranges:

• Ethereum (ETH): Support: $2,200 Resistance: $2,900

• Bitcoin (BTC): Support: $55,000 Resistance: $70,000

Market Outlook:

The market outlook for Ethereum (ETH) suggests a bearish short-term trend with support at $2,200 and resistance at $2,900, potentially leading to further declines or consolidation.

For Bitcoin (BTC), the short-term outlook is weak with support at $55,200 and resistance at $61,400, while the medium term shows uncertainty within a horizontal channel. Long-term, Bitcoin remains positive with support at $45,000 and resistance at $70,000, though increased volatility and liquidity concerns warrant caution.

BTC/ETH ratio has seen a decrease:

In the past 7 days, the BTC to ETH conversion rate has experienced a general decrease. The rate has fallen from 23.37 ETH on August 10 to 22.31 ETH on August 16, marking a decline of approximately 4.5%. The rate saw some fluctuations within this period, with notable decreases on August 12 and August 14, and minor recoveries in between. Overall, the trend reflects a gradual decrease in Bitcoin's value relative to Ethereum over the past week.

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Hot Coin: SAGA 🔥

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

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

What is the project about?

Saga Protocol is a Layer 1 blockchain designed to enable developers to easily create and deploy their own Layer 1 chains, known as "Chainlets."

These dedicated chains provide infinite horizontal scalability by allowing applications to operate on independent, parallelized blockchains that can scale according to demand.

Saga’s infrastructure is VM-agnostic, interoperable, and automated, allowing for seamless integration and rapid deployment.

The project is focused on supporting applications in gaming, entertainment, and other consumer-driven industries by offering tailored, scalable solutions.

Why is the project exciting now?

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

• Scalability for Web3 Gaming

• Rapid Ecosystem Expansion

• Tailored Infrastructure for Next-Generation dApps

• High-Profile Partnerships and Collaborations

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