Bitcoin Consolidates, Watching USD/Gold - Mine Digital
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Bitcoin Consolidates, Watching USD/Gold

July 29, 2020 • 
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As Bitcoin consolidated overnight, alt-coins bounced back, especially in DeFi projects. A proper move in gold or alternatively risk-off is suggested.

Morning Traders,

Bitcoin traded sideways overnight in a consolidation price action. The asset is trading towards the top half of the consolidation at this point, potentially suggesting more to come, although it will also make the interim move lower a more dramatic event.

The US Equity market in U.S. dollar zigged and zagged around its key decision-making point after bouncing off of its key level yesterday when priced in gold (level below at X).

It has traded back lower to that level though (X), and so we have to consider that it breaks through. We would therefore expect a significant run in gold or a good move lower in equities. The more likely move is that gold does something (nobody selling risk with a fed put and monetary/fiscal stimulus) and would target $2200 gold as a better than evens tail event.

Bitcoin

Bitcoin is still the digital asset to watch and the feeling is that if it comes off from here, that it likely goes all the way through as a false-break of the major level (this is a crypto-winter type event).

Because of that implication and the fundamental basis to be long Bitcoin (we put the massive purchases of Greyscale (and similar institutional trading similar to Tudor-Jones) against the short/medium term trading short) we think that there is more to go to the upside.

Bitcoin last traded at $10,942

24 hr high: $ 11,262

24 hr low: $ 10,588

Bitcoin USD Chart

Ethereum

Ethereum has been consolidating since Bitcoin began its run. Where Ethereum was leading Bitcoin at first, we think that a second Bitcoin run would in fact push Ethereum this time, through its $363 level.

If both assets made another significant run, this would complete the repricing event, and re-orient the markets towards a bullish, rather than bearish tone.

Eth last traded at $317.75

24 hr high: $ 323.65

24 hr low: $ 305.96

Ethereum USD Chart

Digital Assets

DeFi projects bounced back the last 24 hours, giving the impression that recent bullishness went deeper than cycling tokens to pump.

There is likely to be a more selective process for which tokens pump after a bull market is fully recognised, with Bitcoin between $12-$15000. It is hard to see all of these tokens and this space slump for the rest of 2020 – the alternative to a very strong market would be quite bleak.

  • Aave: $ 0.2852
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  • Reserve Rights: $ 0.00933
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  • Tezos: $ 2.84

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