Volatility Picks Up as Trends Point to Higher Prices

•  Bitcoin (BTC, Tech/Adoption Grade “A-”) has been up and down over a short time frame but continues to climb higher when zoomed out

•  Polygon (MATIC)

•  Cardano (ADA, Tech/Adoption Grade “B-”) continues to outperform the market this week

After tapping the $50,000 mark earlier this week, Bitcoin has retraced slightly to the $48,000 range where it currently sits.

Ever since the July 20 low for BTC, we’ve seen a huge uptick in volatility. That explains BTC’s up and down motion which has been very apparent over the last two weeks.

Volatility may sound like a scary word. But in this case, BTC is clearly trending higher, as evidenced by the chart below via Coinbase (Nasdaq: COIN):

Polygon is also in the midst of a huge breakout; it’s up more than 115% from its July 20 low, even after dropping off its $1.70 high set over the weekend.

Short-term corrections are to be expected, though. And clearly, MATIC is gaining traction. Since the correction, the Polygon network has made several announcements that should make the ecosystem even more popular, including a fund to incentivize creation of games and non-fungible tokens (NFTs) on the platform.

If it can retake its high over the next week, then a push to $2.00 will be in play.

Here’s MATIC in U.S. dollar terms via Coinbase:

Also hit by a healthy correction is Cardano. It retracted slightly and is trading near $2.70 after reaching new highs just under $3.00 last week.

As long as ADA holds above its previous all-time high of $2.45, it is still in price discovery mode. That means we should expect volatility and large green candles are still a possibility.

There is still a ton of buzz around Cardano and we do not expect that to die down anytime soon, at least not until after next month’s launch of smart contracts on the platform. And just today, Cardano was listed in Japan — a big feat given the country’s strict crypto rules.

Here’s ADA in U.S. dollar terms via Coinbase:


Notable News, Notes and Tweets

•  I hope you haven’t forgotten about the El Salvador Bitcoin news.

•  Mark Cuban is serious about his involvement in the crypto industry, specifically NFTs.

•  Not every indicator is bullish at the moment, so some analysts are warning caution.

What’s Next

At this point, it’s evident the market is trending upwards. Most cryptos are trading well above the lows set in July.

Some have more than doubled since then, and several are hitting new all-time highs.

But like we’re seeing with BTC, MATIC and ADA this week, these cryptos won’t go up in a straight line. Small corrections along the way — to confirm downside support and shake out leverage — are expected.

And don’t forget that when the market starts to go parabolic, volatility picks up dramatically. For every huge green candle, the possibility of an equally large, engulfing red candle increases.

That is okay and to be expected. So long as support holds, the long-term trend is up. Patience is a virtue in bull markets. Reflexive thinking is often the sign of a novice trader.

It’s important not to let your emotions dictate your actions, especially in a volatile market like crypto. So, keep checking back with our daily updates to get the timely, actionable information you need to stay calm in these quick-moving markets.

Best,

Alex

About the Crypto Analyst

Alex has been actively researching and investing in cryptocurrencies since 2017. He contributes research and reports to several Weiss crypto publications, with a primary focus on helping to create crypto trading strategies.

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