Yesterday, many large altcoins peaked each year, with Ether (ETH) exceeding $ 400. What I expected in my last article two weeks ago was a likely scenario.
Also, XRP also had a great day, topping $ 0.32 and temporarily outperforming Bitcoin, as expected in my July 1 article.
However, Bitcoin showed its dominance in space by removing several billion of these gains in just over an hour. What will the next week look like and what effects could Trump’s TikTok ban have on the crypto space?
Daily snapshot of the cryptocurrency market, August 2. Source: Coin360.com
Let’s look at a perspective
1-week chart of the BTC / USD pair. Source: TradingView
Bitcoin a week shows a picture of the future. The market-leading cryptocurrency already tested the $ 12,000 Fibonacci retracement level before it was declined.
If you haven’t paid attention to the weekly Fibonacci, you should probably now use Google as you use the Fibonacci tool in Tradingview, as Marty McFly’s sports almanac in Back to the Future 2 is likely to be the closest you’ll ever get.
The next level to claim is 0.618, which is equivalent to $ 13,500. If you’re happy with 20% Bitcoin earnings, that’s great. However, if you look at other top-class altcoins, you’ll find that most are trading below 0.236 Fibonacci, which means more bullish potential, and we’ve seen this this weekend.
Let’s start with Ethereum
1-week chart of the ETH / USD pair. Source: TradingView
Ether (ETH) exploded 80% on the bottom of an ascending channel and was already recovering at 0.236 Fibonacci. Note that Bitcoin is currently at 0.5 Fib or two levels higher than 0.236 and the ETH has not even claimed this level.
Just wait until this level breaks and ether hits a rise of 0.382, which is an ETH price of $ 660, and this is just the beginning.
The potential drawback is now on top of the channel he came from and is between $ 300 and $ 330. Below is the middle part of the channel at $ 280.
Although the levels had already suddenly dropped this morning, I wouldn’t be surprised if they were up to $ 660 before the next leg.
What about XRP?
1-week chart of the XRP / USD pair. Source: TradingView
If you liked the ETH table, You will probably understand why XRP has also recovered. XRP came out of the same upstream channel where ether was on, only XRP still has a long way to go to 0.236 fib.
In fact, it has a tremendous 188% move to reach the $ 0.85 Fib target. So if Bitcoin was lost and Ether was lost, there is still a very good chance that digital asset number three could make incredible gains over the current level in terms of market cap.
The downside potential for XRP, which uses the same channel levels as ether, is 24 cents for the middle channel and 19 cents for the lowest target. Once again, the first level was tested in the flash crash, so it is unlikely that we will see this level again soon given the current Fibonacci goals.
However, if you’re worried about FOMO at the top, there is another leading cryptocurrency that hasn’t yet awakened from its bearish hibernation.
EOS has not yet recovered
1-week chart of the EOS / USD pair. Source: TradingView
EOS hasn’t received much attention lately, and technically, It looks like the next large-cap coin will have an enormous boost of up to 0.236, which in the case of EOS equates to $ 6.50 and a price of just under $ 3. This could bring you some impressive profits in the short term.
Given that EOS hasn’t left its channel yet, it’s natural that other top altcoins will get back on their feet in the shadow of Bitcoin. Traders and investors will look at the charts trading below, just as I noticed ETH and XRP, EOS is still trading at the bottom of its channel, not the bottom, the bottom is $ 2.50, but that Risk versus return for EOS certainly looks attractive.
There are other good reasons to watch EOS now. Brock Pierce is currently not only running for POTUS, which can only be a good thing for EOSInstead, the parent company Block.one is targeting Generation Z users from TikTok with its voice social media platform. In a tweet on July 30, Pierce said:
“Generation Z mobilizes to defend their rights and privacy! People can make a difference. EVERY VOICE IS HEARD”
Pierce also quotes an LA Times about popular TikTok stars leaving the platform for privacy reasons.
The first Bitcoin investor is known to bet on the right thing at the right time. With President Trump pointing out a TikTok ban tomorrow, there is a gap in the U.S. market where 80 million users can look for alternatives.
While this can put EOS in a good position for additional exposure, there are other blockchain-based social media platforms that are geared to attract new users to the crypto space.
After re-branding the company before it was launched this month, it was called Hyprr, a U.S.-based company that worked with banking giant Wells Fargo to allegedly facilitate entry and exit ramps. of cryptocurrencies, which puts it in a privileged position to take over TikTok’s market share in the United States.
I contacted Hyprr CEO David Brieley about his position after the possible TikTok ban. He told me that Generation Z consumes 5 billion hours of content a day on social media. It’s twice as high as millennials.
When you consider that Steemit once had a $ 1.8 billion market cap, largely based on speculation and millennial appeal, you can only imagine the positive impact a successful blockchain-based social media platform has on the market if it will stand out as TikTok, and what could be nicer than doing so after such a controversial ban on one of the fastest growing viral platforms.
The bearish scenario for Bitcoin
If Bitcoin cannot maintain the previous multi-year resistance of $ 10,500 as new support, I would expect the downtrend to be limited to Fib 0.382 from around $ 9,500. However, it looks like the bulls will be in control for a while.
The bullish scenario for Bitcoin
If Bitcoin can fit and hold above $ 12,000, the next logical resistance range is $ 13,500, which is equivalent to 0.618 Fib. However, with the recovery of altcoins and the cyclical effect of low ceiling altcoins flowing to higher level alts and then back to bitcoin before starting againI would expect Bitcoin price to remain fairly stable over the next week.
The opinions and comments expressed here are exclusively those of @official and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.