Positive Forecasts for August Despite the Decline of Ethereum and Shiba Inu!
After a brief period of growth triggered by the exit of the current U.S. president from the election race, cryptocurrencies have started to decline in value once again.
However, August is expected to be more positive than negative for Bitcoin and altcoins.
#### Bitcoin
From July 26 to August 2, 2024, Bitcoin's price dropped by nearly 5%. After surpassing the $70,000 mark on July 29, BTC began to correct. The lowest price for the week was $62,233.
1. **Political Climate**: The growing popularity of Democratic candidate Kamala Harris, who opposes cryptocurrencies, while Republican candidate Donald Trump, a supporter of the crypto industry, has seen his popularity wane.
2. **Options Expiry**: The expiration of options worth $2.2 billion on August 2nd also impacted the price.
3. **MtGox**: The bankrupt exchange transferred 47,000 BTC to its clients, leading to potential sell-offs and a drop in Bitcoin's price.
From a technical analysis perspective, Bitcoin still holds a cautiously optimistic outlook. The price remains above the 50-day moving average, and the RSI indicator is above 50. Support and resistance levels are $62,233 and $70,016, respectively.
Bitcoin has been through several turbulent periods, but the current situation highlights its resilience. Despite the correction, long-term forecasts remain moderately positive, suggesting that the leading cryptocurrency could rebound as market conditions stabilize. Investors are advised to monitor political developments closely, as they will play a crucial role in shaping Bitcoin's trajectory.
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The price of Ether fell by 3.27% from July 26 to August 2. Despite attempts to start an upward trend, Ether stalled at around $3,150.
Recent news for ETH includes the approval of spot ETFs and ongoing investment flows. However, cumulative outflows remain significant.
Ethereum also celebrated its ninth anniversary, achieving a market capitalization of over $400 billion and more than 7 million active users per month.
Technically, Ethereum shows a sideways trend with bearish dominance. It is crucial for ETH to stay above the $3,050 mark to avoid a decline to $2,800. The long-term potential for growth remains, especially as the network continues to evolve and adopt new technologies.
Ethereum's journey over the past nine years has been remarkable, from its initial launch to becoming the second-largest cryptocurrency by market cap. The community and developers are optimistic about its future, particularly with the upcoming upgrades that promise to enhance its scalability and functionality.
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Shiba Inu dropped by 10% over the past week, failing to stay above $0,000017. Despite the decline, the community remains hopeful for a positive August, coinciding with the token's fourth anniversary.
American politicians are showing interest in Shiba Inu. The U.S. federal authorities hold nearly 55 billion SHIB tokens.
Technical analysis indicates bearish sentiment, with the price below the 50-day and 200-day moving averages. Support and resistance levels are $0,00001303 and $0,00001761, respectively.
The Shiba Inu community continues to work towards making the cryptocurrency deflationary by burning tokens. Over 379 million SHIB were burned in July 2024, bringing the total number of burned tokens close to 411 trillion. This strategy aims to reduce the circulating supply and potentially increase the token's value over time.
### Conclusion
While cryptocurrencies have seen a price drop this week, Bitcoin remains promising from a technical analysis standpoint. Ethereum and Shiba Inu did not benefit from their anniversaries, but long-term prospects could still be favorable.