Mooners and Shakers: Can a US dollar ‘double top’ help Bitcoin and Ethereum break out?
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Bitcoin and Ethereum are lying flat in a tight tunnel, inching their way towards the end of the week. You know… like Steve McQueen in The Great Escape. Maybe a flagging US dollar is the light they need.
Some analysts are seeing the US Dollar Index (DXY) potentially forming a double top on its chart right now. If that’s the case, then shackles will likely break and a risk-asset bust-out could ensue, as US trader/analyst Scott “Wolf of All Streets” Melker posits below in the “party time” side of his coin flip.
$DXY (Dollar Index)
Consolidating below key local resistance or a future double top in the making?
If it's the former, everything will get rekt.
If it's the latter, then markets have bottomed for now and it's party time. pic.twitter.com/3c00iVkzeF
— The Wolf Of All Streets (@scottmelker) August 25, 2022
And although we admit we’re headlining this hopium-filled thought (rebellions, hope and all that), we’d probably best not get too carried away with the idea. There’s still a very strong chance a hawkish US Federal Reserve awaits escaping crypto prisoners emerging through the Jackson Hole in, oh… roughly 14 hours or so.
But, the short-term fact (subject to immediate change) is that the DXY has hit some resistance and is showing the very initial stage of a trend down with some sign of bearish divergence on its RSI (relative strength index).
$dxy $109 resistance held, trending down off the double top line.
— Miles Taylor (@MilesTaylor47) August 25, 2022
Guess we’ll find out very soon enough if this is pure fantasy of the not-particularly-sexy inverse-correlation kind, and your favourite cryptographically secured assets are bound for more pain.
Onto some daily price action…
With the overall crypto market cap at US$1.09 trillion and up about 1.5% since yesterday, here’s the current state of play among top 10 tokens – according to CoinGecko.
Just a tiny ray of sunlight poking through here for the crypto majors. Is Ethereum showing some signs of pre-Merge strength? Go-to Dutch analyst Michaël van de Poppe thinks it might be.
#Ethereum indeed reacting on the first level of importance and showing strength.
Cracking the high and 0.10 seems to be next pre-merge. pic.twitter.com/uwLop7tBWl
— Michaël van de Poppe (@CryptoMichNL) August 25, 2022
Another analytical Crypto Twitter account meanwhile thinks US$1,700 is the mark for ETH to act as a rising tide for altcoin boats…
— Teddy (@TeddyCleps) August 25, 2022
Not bearishly realistic enough for you? Then just for balance, here’s not such a great sign… According to crypto market-intelligence platform Santiment, Ethereum whales (big bag holders), have been moving a good deal of their holdings onto large crypto exchanges such as Binance just lately, ahead of the Merge…
📊 #Ethereum's price continues following tightly with the #SP500 as global uncertainties continue. The supply of $ETH on exchanges rose sharply just prior to the drop last week, and network growth has fallen back to 3-month low levels. Our full analysis: https://t.co/70kbsMS1DQ pic.twitter.com/q8TvXdViqW
— Santiment (@santimentfeed) August 25, 2022
What does this mean? Inflows of crypto onto exchanges is considered bearish and can foreshadow traders/investors looking to dump/take profit on their tokens.
Maybe, though, as another American crypto analyst Alex Krüger suggests, Ethereum’s pre-Merge narrative still has some pumpage to go, before a potential “sell the news” pullback. The Merge, by the way, is now slated to begin as early as September 6, completing somewhere between September 10-20, according to the Ethereum Foundation.
$BTC dumped 20% two days before the halving, and 10% hours before the halving. A classic case of positioning driven "sell the news".
— Alex Krüger (@krugermacro) August 25, 2022
Sweeping a market-cap range of about US$8.8 billion to about US$459 million in the rest of the top 100, let’s find some of the biggest 24-hour gainers and losers at press time. (Stats accurate at time of publishing, based on CoinGecko.com data.)
• Shiba Inu (SHIB), (market cap: US$8.2 billion) +7%
• BitDAO (BIT), (mc: US$600 million) +7%
• Ethereum Classic (ETC), (mc: US$5 billion) +5%
• Aave (AAVE), (mc: US$1.3 billion) +5%
• Decred (DCR), (mc: US$489 million) +4%
• Celsius (CEL), (market cap: US$487 million) -8%
• Lido DAO (LDO), (mc: US$1.16 billion) -8%
• Chiliz (CHZ), (mc: US$1.198 billion) -7%
• Helium (HNT), (mc: US$849 million) -5%
• Leo Token (LEO), (mc: US$4.8 billion) -3%
A selection of randomness and pertinence that stuck with us on our morning moves through the Crypto Twitterverse…
JUST IN: World's biggest #Bitcoin ATM firm to go public on Nasdaq in $885 million deal 🇺🇸
— Bitcoin Magazine (@BitcoinMagazine) August 25, 2022
#SPX pumping, crypto should follow soon
— il Capo Of Crypto (@CryptoCapo_) August 25, 2022
Saudi Arabia, Egypt, Turkey, Argentina, and Iran are applying to join BRICS.
BRICS already has 40% of world population, and over 25% of GDP. These members would add massive control over oil and food production.
A new world order is emerging and it will not be led by the USA.
— Lark Davis (@TheCryptoLark) August 25, 2022
💥BREAKING: Intel has struck $30B deal to build a new chip factory – part of which will be used to build #Bitcoin mining chips. 🙌
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) August 25, 2022
Windows 95 launched this day in 1995.
“Start Me Up” was its anthem: pic.twitter.com/aLh4lyk8iR
— Jon Erlichman (@JonErlichman) August 24, 2022