Cryptocurrency Market August 5 – CHK Summary: Bitcoin struggles at 200-week MA, US stocks drop, waiting for July jobs report

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2022-08-07 20:23:43

Bitcoin has returned to the base zone as higher highs give way to the fight for the 200-week moving average (MA).

Cryptocurrency Market

Market data shows that Bitcoin price is trending down to test the main bear market trendline as support. Over the past 24 hours, Bitcoin has once dropped to the $22,500 mark and then bounced back to the $23,100 area early this morning. This difference shows that the tug-of-war between buyers and sellers is becoming increasingly fierce.

Bitcoin price movement chart August 5, 2022

Bitcoin’s rise was fueled by the influence of the news that BlackRock investment fund partnered with Coinbase exchange, providing cryptocurrency trading services to customers.

The moves around the 200-week moving average just above the $22,800 area are unpredictable. The bulls and bears choose this as the main contention zone to gain control of the next key milestones. On-chain analytics platform Material Indicators notes that a class of whales active on major exchange Binance have gone into risk-off status for the day.

The Illiquid Supply Shock Ratio Index (ISS) saw a spike in momentum in July. The ISS rallied as BTC was largely taken out of circulation, thus increasing the likelihood of a price rally based on greater demand than supply. .

Top 10 cryptocurrencies with the largest market capitalization on August 5, 2022

Meanwhile, altcoins are still showing mixed signals with the majority of tokens bullish. Leading the day’s gains is FLOW with a 36% return, followed by Trust Wallet Token’s TWT with a 13% gain. On the downside, the biggest loss on the day is OP when losing up to 10% and followed by LDO when it is down 7% in the same time frame.

Meanwhile, ETH price is witnessing a sideways trend as it continues to move sideways in the mid-$1,600 range. The tokens in the top 10 by market capitalization are also mostly in the green. DOT, SOL, BNB, ADA, XRP all have momentum up from 1.5 – 3% from yesterday’s low.

Investor sentiment in the market did not have many strong fluctuations. The Greed and Fear Index (FGI) continues to hold steady at 30-31 in the Fear zone.

The Cryptocurrency Market Greed and Fear Index (FGI) August 5, 2022

Macro factors

The Dow Jones Industrial Average fell on Thursday (August 4), as investors waited for the July jobs report to be released on Friday (August 5), which will provide the latest market news. employment and the health of the US economy.

Ending the session, the Dow Jones dropped 85 points (or 0.26%) to 32,726 points. The S&P 500 fell 0.08% to 4,151 points, having hit its highest since June on Aug. 3. Meanwhile, the Nasdaq Composite added 0.41% to 12,720, its highest close since early May 2022.

The number of weekly jobless claims in the US rose slightly, prompting investors to watch for signs of waning labor market strength, according to a report Thursday morning. The US jobs report for July, due for release on Friday, will show the number of jobs employed in the previous month. Economists forecast the US economy added 258,000 jobs in July, down from 372,000 in June. The unemployment rate is forecast to remain at 3.6%.

Additionally, investors will get an update on inflation data from the July CPI report next week.

Earnings season continues, with a bunch of new reports on Thursday. Eli Lilly shares fell after the company announced second-quarter results that fell short of expectations and lowered its full-year forecast. Datadog and Lucid shares also fell after both companies cut their future outlooks.

Yields on US government bonds fell on Thursday, as investors awaited Friday’s jobs report. Specifically, the 10-year US government bond yield hit a low of 2.52% this week, and then quickly approached a high of 2.82%. The 10-year yield hovered at 2.67%, the middle of that range Thursday afternoon. Yields often move inversely with price.

Bond yields fell sharply at the start of the week as investors worried about recession and tensions with China when US House Speaker Nancy Pelosi visited Taiwan. However, yields have rebounded after fierce comments from US Federal Reserve (Fed) officials.

Oil prices fell to their lowest levels since before the Russia-Ukraine conflict in February 2022 on Thursday (August 4), as investors worried about the possibility that an economic slowdown later this year could affect energy demand. Closing the session on Thursday, the Brent oil contract fell 2.75% to $94 a barrel after hitting a low of $93 a barrel in the middle of the session, the lowest since Feb. 21. The WTI oil contract lost 2.3% to $88.5 a barrel, after hitting its lowest since Feb. 3.

The same day, world gold rose more than 1% to a 1-month high, bolstered by a weakening dollar and US bond yields, and as investors closely watched US-China tensions. Closing the session, the spot gold contract advanced 1.6% to $1,793 an ounce, after touching the highest level since July 5 previously. Gold futures added 1.89% to $1,810 an ounce.

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