Cointree Crypto Market Update - July 29th 2020

Market update for traders

Jump to the beginner's version

Did the sleeping giant awaken this week? In an explosive 48 hours, bitcoin managed a 21% thrust to the upside, a rise of around $2200 AUD. The largest crypto by market cap now sits impressively above $15,000 AUD, and for the first time since the end of May.

For those new to cryptocurrency, price swings of this magnitude can be dizzying, especially when price volatility had been at record lows up until the end of last week. It’s for this reason that it’s important to be prepared for both downside risk and upside potential and BTC didn’t disappoint.

As suspected, bitcoin followed Gold’s impressive breakout through long held resistance but it wasn’t enough to conclusively breach and hold the $15,500 level. Bitcoin rode the 50 EMA on the daily chart and pushed price into heavy resistance around $16,000 AUD. While exciting, it’s important to keep things in perspective. For the third time this year bitcoin has failed to create a higher-high above $15,500, and until this happens, we must consider the possibility that this is just testing the ceiling of a broad range with the potential for a retracement. For now, the trend looks bullish.

In the shadow of Bitcoin’s big break some old school Alt’s performed strongly over the 7-days... Ethereum is up 27%, bitcoinCash is up a staggering 16%, and Litecoin is up 19%.

Read our full market update here.

## Market update for beginners

Did the sleeping giant awaken this week?

In an explosive 48 hours, bitcoin managed a 21% move to the upside, a rise of around $2200 AUD. The largest crypto by market cap now sits impressively above $15,000 AUD, and for the first time since the end of May.

For those new to cryptocurrency, price swings of this magnitude can be dizzying, especially when price volatility had been at record lows up until the end of last week. It is for this reason that it’s important to be prepared for both downside risk and upside potential, and BTC didn’t disappoint.

Key Takeaway: While exciting, it’s important to keep things in perspective. Big moves like this often retrace, or fall back down to lower levels as sellers take profits before the trend resumes. For the third time this year bitcoin has failed to cement a strong position above $15,500 and until this happens, we must consider the possibility that bitcoin may oscillate between $16,000 and $13,000 if buyers cannot put bust through $15,500 for good. For now, the trend looks bullish.

In the shadow of Bitcoin’s big break some old school Alt’s performed strongly over the 7-days... Ethereum is up 27%, bitcoinCash is up a staggering 16%, and Litecoin is up 19%.

Read our full market update here.