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Crypto week ahead: What to expect after recent BTC, ETH rebound

August 11, 2024
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Crypto week ahead: What to expect after recent BTC, ETH rebound
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  • Coinbase projected a positive market shift, cautions about US CPI impact.  
  • QCP Capital supported the bullish outlook for BTC. 

According to Coinbase analysts, the crypto market could extend its recovery in the near term after a massive liquidation scenario following Bitcoin’s [BTC] dip to $49k on 5th August. 

Per the analysts’ weekly commentary, the plunge flushed out long positions, allowing a ‘cleaner positioning’ that could boost the market. 

‘Cleaner positioning could be a positive technical indicator for crypto, in our view…This may indicate that the market could be done pricing-in pessimism.’

As of press time, traders’ sentiments in the futures market have changed to positive, as indicated by the positive funding rates. This also coincided with BTC’s rebound from $49K to the previous range-lows of $60K. 

BTC

Source: CryptoQuant

The same bullish outlook was reiterated by QCP Capital analysts in their weekend brief. 

‘Bullishness in BTC is significant and structural. Throughout the week (and in spite of the crazy volatility), there was consistent demand for BTC calls expiring in 2025 with strikes closer to 100k.’

US CPI data to set the next BTC direction?

While Coinbase analysts acknowledged that the near-term price action for BTC, Ethereum [ETH], and Solana [SOL] could continue.

But macro factors would determine investors’ next move. They cited the US CPI (Consumer Price Index) data scheduled to be released on 14th August as a key factor to watch. 

‘We would expect some of this selling pressure to ease…We think macro dominance could continue. For example, next week’s inflation print on August 14 will likely take on additional scrutiny given this week’s events’ 

However, Coinbase added that traders and investors could begin positioning accordingly using PPI (Producer Price Index) data to gauge CPI’s possible outcomes. PPI data track inflation from the producers’ perspective. 

See also  Bitcoin sentiment in fear zone – Is now the time to buy BTC?

On the other hand, CPI measures inflation by tracking consumers’ spending on key goods and services. The Fed uses both data sets to make interest rate decisions. The PPI data will be issued on August 13th.  

‘But also we expect many market players to look at PPI the day before to provide an early indication for CPI directionality, potentially affecting market performance as well.’ 

In short, another round of market volatility should be expected from 13th August, setting the next BTC and market direction for the week. 

Over the weekend, BTC traded above $60k while ETH exchanged hands above $2500. On the other hand, SOL traded above $150.

Previous: Will Solana’s key support at $153.95 hold or break this week?
Next: Ethereum’s price to $3000? Here’s why and why not that might happen!

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  • Coinbase projected a positive market shift, cautions about US CPI impact.  
  • QCP Capital supported the bullish outlook for BTC. 

According to Coinbase analysts, the crypto market could extend its recovery in the near term after a massive liquidation scenario following Bitcoin’s [BTC] dip to $49k on 5th August. 

Per the analysts’ weekly commentary, the plunge flushed out long positions, allowing a ‘cleaner positioning’ that could boost the market. 

‘Cleaner positioning could be a positive technical indicator for crypto, in our view…This may indicate that the market could be done pricing-in pessimism.’

As of press time, traders’ sentiments in the futures market have changed to positive, as indicated by the positive funding rates. This also coincided with BTC’s rebound from $49K to the previous range-lows of $60K. 

BTC

Source: CryptoQuant

The same bullish outlook was reiterated by QCP Capital analysts in their weekend brief. 

‘Bullishness in BTC is significant and structural. Throughout the week (and in spite of the crazy volatility), there was consistent demand for BTC calls expiring in 2025 with strikes closer to 100k.’

US CPI data to set the next BTC direction?

While Coinbase analysts acknowledged that the near-term price action for BTC, Ethereum [ETH], and Solana [SOL] could continue.

See also  Northern Data saw revenue drop to €77.5 million, mined 2,298 BTC in 2023

But macro factors would determine investors’ next move. They cited the US CPI (Consumer Price Index) data scheduled to be released on 14th August as a key factor to watch. 

‘We would expect some of this selling pressure to ease…We think macro dominance could continue. For example, next week’s inflation print on August 14 will likely take on additional scrutiny given this week’s events’ 

However, Coinbase added that traders and investors could begin positioning accordingly using PPI (Producer Price Index) data to gauge CPI’s possible outcomes. PPI data track inflation from the producers’ perspective. 

On the other hand, CPI measures inflation by tracking consumers’ spending on key goods and services. The Fed uses both data sets to make interest rate decisions. The PPI data will be issued on August 13th.  

‘But also we expect many market players to look at PPI the day before to provide an early indication for CPI directionality, potentially affecting market performance as well.’ 

In short, another round of market volatility should be expected from 13th August, setting the next BTC and market direction for the week. 

Over the weekend, BTC traded above $60k while ETH exchanged hands above $2500. On the other hand, SOL traded above $150.

Previous: Will Solana’s key support at $153.95 hold or break this week?
Next: Ethereum’s price to $3000? Here’s why and why not that might happen!
Tags: AheadBTCCryptoETHexpectReboundWeek

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Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

October 28, 2023
Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

November 2, 2023
UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

October 30, 2023
Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024
How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

September 10, 2024

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EDITOR'S PICK

Solana ‘beats’ Bitcoin here; Is $200 next for SOL’s price prediction?

Solana ‘beats’ Bitcoin here; Is $200 next for SOL’s price prediction?

March 20, 2024
Bitcoin Mining Was More Profitable in February Than January: Jefferies

Bitcoin Mining Was More Profitable in February Than January: Jefferies

March 27, 2024
Ethereum Price Signals Bearish Rection, Why ETH Could Drop 5%

Ethereum Price Signals Bearish Rection, Why ETH Could Drop 5%

January 8, 2024
Ethereum ETFs get SEC’s thumbs up, but watch out for ETH whales!

Ethereum ETFs get SEC’s thumbs up, but watch out for ETH whales!

July 24, 2024

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