Crypto market update August 16: BTC, ETH and XRP stall

The crypto market remained largely range-bound on August 16 as merchants awaited a number of doubtlessly market-moving occasions, together with the discharge of the Federal Open Market Committee (FOMC) assembly minutes on August 19.

Bitcoin (BTC) continued to commerce close to $63,000, whereas Ethereum (ETH) remained round $1,878. XRP additionally hovered round the important thing $1 help degree as low buying and selling volumes saved main cryptocurrencies from making a decisive transfer.

In the meantime, geopolitical developments and expectations surrounding the upcoming White Home assembly between US officers and crypto executives added one other layer of uncertainty for merchants.

What’s driving the crypto market as we speak?

Geopolitical tensions stay one of many components influencing crypto sentiment.

Markets are watching developments surrounding the potential reopening of the Strait of Hormuz, whereas stories that the UAE seized billions of {dollars} in Iranian property have added to uncertainty.

Prediction markets presently point out solely a 13% likelihood that the US-Iran ceasefire might be prolonged after it expires on August 20.

Tensions elsewhere are additionally contributing to the cautious temper. Ukraine launched a serious drone assault in Moscow on August 16, including one other geopolitical danger for international monetary markets.

Financial coverage is one other main focus.

Merchants are ready for the minutes from the Federal Reserve’s July FOMC assembly, scheduled for launch on August 19. The July assembly maintained rates of interest at 3.50% to three.75%, however its tone remained comparatively hawkish as officers continued to specific considerations about inflation.

The minutes may present extra clues concerning the Fed’s strategy to its September assembly.

Markets are presently pricing a 26% chance of no price change on the September assembly, in keeping with the figures cited within the supply.

The crypto market can also be looking forward to the August 19 White Home assembly between President Donald Trump and executives from main crypto and prediction-market firms. The result may affect sentiment round US crypto coverage and upcoming laws.

Crypto market August 16

The info reveals that traders stay cautious, with the Worry and Greed Index nonetheless firmly within the worry zone.

Derivatives exercise falls as merchants wait

Crypto derivatives exercise additionally weakened through the weekend.

Whole open curiosity stood at roughly $117 billion, down 0.85% from the day prior to this.

Buying and selling quantity throughout crypto derivatives dropped by roughly 50% to $61 billion, in keeping with the figures cited from CoinGlass.

Liquidations additionally fell sharply, declining 71% to $38 million. Lengthy positions accounted for about $24 million of the liquidations, whereas quick positions accounted for $14 million.

The sharp decline in liquidations displays the shortage of main worth actions as weekend buying and selling volumes stay comparatively subdued.

Regardless of the cautious market, derivatives positioning nonetheless favors the bullish facet. Lengthy shopping for quantity reached roughly $9.78 billion, in contrast with $5.47 billion in short-selling quantity.

Bitcoin worth outlook: symmetrical triangle retains BTC range-bound

Bitcoin was buying and selling round $62,900 on August 16, remaining inside a slender vary between roughly $62,000 and $65,000.

The broader crypto market stays subdued after a equally slender session on August 15, when Solana ETF inflows led weekly crypto investment products while Chainlink and Shiba Inu outperformed major assets.

The route of the breakout will possible rely on whether or not consumers or sellers achieve management.

A break under the decrease trendline round $61,850 may expose Bitcoin to additional draw back. Based mostly on the projected transfer from the sample, BTC may doubtlessly fall towards $56,900 if the breakdown is confirmed.

Then again, a breakout above the higher trendline round $66,700 may strengthen the bullish setup. The sample’s estimated 7.9% transfer may then put Bitcoin on a path towards roughly $71,900.

Nonetheless, momentum stays a priority for bulls. Bitcoin’s RSI is round 42, indicating that bearish momentum presently has an edge.

Consequently, merchants might watch the $61,850 and $66,700 ranges carefully for affirmation of Bitcoin’s subsequent main transfer.

Ethereum worth outlook stays cautiously bullish

Ethereum was buying and selling close to $1,878, with the cryptocurrency displaying little motion on the day.

The present worth construction resembles a falling channel inside a possible bull flag sample. Such a setup can precede an upward transfer if consumers handle to push the worth by resistance.

Based on the cited evaluation, Ethereum would want to shut above $1,947 to verify a breakout from the sample.

A profitable transfer above that degree may open the way in which for a possible 28% achieve, though affirmation from worth motion could be crucial earlier than treating the setup as bullish.

Derivatives positioning additionally stays comparatively optimistic.

Ethereum’s general lengthy/quick ratio stands at 1.10, whereas the ratio reaches 2.56 on Binance and 1.89 on OKX, suggesting that merchants on these exchanges are presently positioned extra closely towards lengthy positions.

XRP defends $1 as ETF inflows help sentiment

XRP stays one of many key altcoins to look at after slipping barely under the $1 mark.

The token was buying and selling round $0.99, making the psychological $1 degree an essential space for bulls.

Current progress in XRP Ledger exercise has offered some help for the broader restoration narrative. Community exercise just lately reached a two-month excessive, suggesting that participation on the community has elevated regardless of weak worth efficiency.

If XRP fails to reclaim and maintain $1, the subsequent draw back degree may very well be round $0.98.

Nonetheless, a sustained transfer above $1 may enhance the short-term outlook and doubtlessly enable XRP to check the $1.08 resistance.

Institutional demand can also be displaying indicators of enchancment. Information from SoSoValue cited within the supply reveals that XRP funding merchandise recorded $2.2 million in weekly inflows, whereas Bitcoin and Ethereum merchandise recorded outflows throughout the identical interval.

That divergence may present one other optimistic issue for XRP if institutional demand continues to strengthen.

What to look at subsequent

The crypto market is getting into an essential week, with a number of catalysts doubtlessly able to breaking the present range-bound situations.

The August 19 FOMC minutes will present merchants with extra details about the Federal Reserve’s considering on inflation and rates of interest. The identical day, the White Home crypto assembly may generate contemporary alerts on US digital-asset coverage.

For Bitcoin, $61,850 and $66,700 are the important thing technical ranges to look at. Ethereum must reclaim $1,947, whereas XRP’s potential to defend $1 stays essential for its short-term restoration.

Till these ranges break, nevertheless, the crypto market may stay caught in a slender vary as merchants watch for clearer catalysts.