Home Daily Analysis Crypto Market sentiment Daily Crypto Brief, August 5 – The Buyers are Back, US-China War,...

Daily Crypto Brief, August 5 – The Buyers are Back, US-China War, Renminbi Devaluation!

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This weekend saw the return of the buyers to the cryptocurrency sector. The past week was quite good for the digital coin industry, adding almost 40 billion of market cap and raising it to $305.400 billion. Bitcoin also set a new high in its market dominance, with 67.6%.

Bitcoin weekly chart finally made a reversal pattern, also which is quite good for its long-term perspective.

The current map of the market is this:

 

What is happening?

Bitcoin price may be pumped up as the Yuan went above seven renminbis to one dollar this morning. The last time China’s currency was lower than this figure was in2008, at the beginning of the financial crisis. That could be a new chapter in the US vs China trade war since it could be taken as a devalue measure to take counter the latest Donald Trump move. Source: nytimes.com.

That renminbi devaluation may have triggered bitcoin purchases among Chinese investors as safe haven for their cash.

This movement was started by US President, Donald Trump when he tweeted he would impose 10 per cent tariff on a total of about $300 billion worth of Chinese products.

Walmart follows Facebook and fills for a digital currency patent. The patent specifies a digital currency generation tied to a fiat currency, which indicates a stablecoin. Walmart, according to a beincrypto.com article, will provide a “fee-free” place to store money, and seems aimed to serve their under-banked customers.

A new Iranian Law that does not accept crypto as a legal tender and will not recognise transactions carried out with digital currencies. Mining is allowed but should be located outside a 30-km perimeter of all provincial heads — source cointelegraph.com.

Litecoin halving will take place today, 05 August at 10:23 UTC, or 12:23 CET. Litecoin miners will see their rewards halved by half, from 25 to 12.4 coins.

Technical Analysis

 

Bitcoin



Last Sunday, the price of Bitcoin had been moving up moderately, driving its price to $10,900. Then, early morning, with the opening of the Asian markets, it caught a further impulse that created a large bullish candle which moved further its price up to the current $11,500 level. On the 4H chart, the MACD is bullish, but the price is currently touching the +3 Bollinger band, a sign that it is overextended. That said, the price today seems to be driven by an increasing jump in demand due to the renminbi devaluation amid the US-China trade war.

Ripple



Ripple is moving sideways although lately, it has made higher lows in the 4H chart. The price is currently encountering resistance and is consolidating the movement made last Sunday. MACD is bullish, and the price moves above the +1 Bollinger line, so we must qualify this state as bullish. A price movement above 0.3235 level will confirm this.

Ethereum


Ethereum is following the tracks of the Bitcoin. Yesterday the price was retracing, but at the end of the day it began to recover, and the last candle moved it above the $224 resistance level. Its next level to attack is $236.

Litecoin


Yesterday, Litecoin’s price movement was dominated by sellers, but it slowly was recovering, helped by the moderate bullishness of the Bitcoin. Early morning today, it made a large bullish candle, but it could not hold the $95 level and is moving close to it right now. The Stochastics and the MACD point to a potential bullish continuation, although the Bollinger bands do not currently show a bullish stance. The price is above the ascending trendline again, So overall, we think it it will move moderately bullish.

 

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