WEEKLY ANALYSIS - Bitcoin and altcoins show little movement amid low volatility
The cryptocurrency market cap is barely changed from last week, while Bitcoin faces resistance at $26,000.
The cryptocurrency market has been in a stalemate for the past week, with no major price movements or catalysts to shake up the status quo as the total market capitalization of all cryptocurrencies is around $1.050 trillion, down 1% from seven days ago, according to CoinGecko.
Bitcoin (BTC), the largest and most influential cryptocurrency, has been trading sideways around $26,000, unable to break above or below this psychological level. Bitcoin is down 0.7% in the past week and 11.5% in August, making it the worst month of 2023 for the flagship crypto.
Bitcoin’s lackluster performance has been attributed to various factors, such as the uncertainty over the Federal Reserve’s monetary policy, the regulatory crackdown in China and other countries, and the low trading volume and liquidity in the summer season.
Meanwhile, altcoins have also been mostly flat, with some exceptions. Ethereum (ETH), the second-largest crypto by market cap, has lost 2% in the past week and is trading at $1,636 at the time of writing. Ethereum is facing some technical challenges as it prepares for its transition to a more scalable and energy-efficient network.
Some smaller altcoins have shown some signs of life, such as Cardano (ADA), which has gained 13% in the past week and reached a new all-time high of $2.97 on Sunday. Cardano is expected to launch its smart contract functionality on September 12, which could enable it to compete with Ethereum and other platforms for decentralized applications. Another altcoin that has been outperforming the market is Solana (SOL), which has surged 64% in the past week and hit a new record of $97.86 on Monday.
On the other hand, some popular altcoins have been lagging behind, such as Dogecoin (DOGE), which has dropped 9% in the past week and is trading at $0.27. Dogecoin, which started as a joke but gained fame thanks to Elon Musk and other celebrities, has lost some of its momentum and appeal in recent months.
The cryptocurrency market is still waiting for a clear direction and a decisive breakout from its current range. Some analysts believe that Bitcoin could resume its uptrend if it can surpass $30,000 and reclaim its dominance over the market. Others warn that Bitcoin could face more downside pressure if it fails to hold above $25,000 and risks losing its support levels.