It has not been the best of starts to the week for the cryptocurrency market as Bitcoin continues to just keep its head above the $10,000 mark. The past week saw Bitcoin shed over $2,000 in value rather rapidly as the hopes of a rally above $13,000 was dashed.
On the positive side, Bitcoin has managed to stay above the $10,000 mark — an important milestone and a strong floor at the moment. But, this is what makes the next week so important because Bitcoin can maintain above here it should start rising again, but if it drops below, there could be a big sell off.
Meantime, there has been some positive news for other altcoins, namely Chainlink and NEM. The former has started off the week as one of the only coins to show good gains in the last 24 hours — up over six percent.
Then there is NEM, the 21st ranked coin by market cap that is also in the green to the tune of four percent. Both of these coins are worth watching for the coming week as they rallied over the weekend and have slightly tapered off so it is uncertain which direction the next move will be.
Bitcoin breaking down
There were a few reasons put forward as to why Bitcoin fell from its rally above the $12,000 mark. These included miner sell offs and the US dollar gaining some strength amid the ongoing financial crisis.
Last week there were reports that large-scale mining pools are sending higher-than-normal amounts of BTC to exchanges in recent days. Data has indicated that miners were preparing to sell their Bitcoin holdings, which added selling pressure to the markets. Ki Young-Ju, the CEO of CryptoQuant, wrote:
“Miners send a certain amount of BTC to exchanges periodically, so they already have a large amount of BTC in the exchange. Whenever they decide to sell, it seems they move a relatively significant amount of BTCs to other wallets, and some of them are going to exchanges.”
LINK keeps growing
LINK has been one of the best performing assets of 2020 and this is hardly surprising given the niche they are trying to target as well as the application of Chainlink is the booming DeFi space.
Chainlink has risen more than 110 percent since the middle of the year, rising from $9.80 to $15.48 on the 12th of August. It is now a little below that having suffered from the Bitcoin fall, but still sits above $12 a coin.
It is now down to a fight between the bulls and the bears for LINK as the coin has settled down and is looking for its next move, either up or down. If the bulls can sustain the price above $12.89, it will be the first indication that the correction is likely over.
NEM’s charts point to rebound
“XEM is attempting to rebound off $0.1023475, which is just below the 50% Fibonacci retracement level of the entire leg of the up-move that started in end-June. This suggests that the bulls are buying on dips, indicating positive sentiment,” it was explained by Cointelegraph
“The rebound is likely to face resistance at $0.1413531, which is the intraday high of Sep. 5 but if the bulls can scale the price above this level, a retest of the recent 52-week high at $0.1690655 is possible.”