Last week was very difficult for many cryptocurrency investors to take. Indeed, the Bitcoin and theEthereum give way to their summer highs. Not only, the first would be about to drive a critical support. But the second would catch up with him downwards. And all in all, the recovery of their bear markets would logically come back in power in an environment full of uncertainties.
The latest technical analysis regarding BTC and ETH prices is hardly encouraging at the time of writing. Even though we have not finished the month of September, which is traditionally dull for risky asset classes. Starting from a situation that is once again deteriorating both graphically and fundamentally, the coming week could shake up the cryptocurrency market even more.
Bitcoin – The mother of cryptocurrencies about to break?
Bitcoin begins the start of the week with a bearish candle, which for now is ticking its lows for the year. In this sense, it is moving away from levels that would allow buyers to regain control of sellers. Especially since the latter note that the downside potential would become significant in the event of a break of the support of $20,000 in weekly units.
On the one hand, the RSI is a good distance from the oversold zone. And on the other hand, the MACD sees its bullish trajectory gradually flattening out. With the fear that it quickly crosses the signal to the downside. But even worse, the bullish candle of the week of September 05 did not find the relay to support prices beyond $22,000.
The coordination of these unfavorable technical signals ensures that Weinstein’s phase 4 does not weaken. So much so that the downward slope of the 30-week moving average (weekly 30MM) continues to play its part. Assuming the next wave of correction below $20,000 takes place, it would likely head towards the resistance at $26,000. And at the same time, BTC prices may revisit $12,000 supportso decisive in the last bullrun.
Ethereum – Sellers Smash $1400 Support
Despite The Merge which went pretty well, the last weekend was tricky for Ethereum. Because precisely, prices closed below the intermediate support at $1400. And if this week’s candle were to be of the same caliber as the previous one, the return to the $1000 support, a distant time in the summer, would rise from the ashes much to the chagrin of cryptocurrency investors.
To make matters worse, the technical indicators in weekly units are gradually weakening. With in particular, a MACD which sees its gap on the rise reduce compared to the signal. But the most striking graphic point is unfortunately in the solidity of Weinstein’s phase 4. Especially since it is more accentuated than that of Satoshi Nakomoto’s digital currency.
In any case, it shows that ETH remains entangled in its bear market, and this despite a doubling in price during the summer period. And in the event that they come back in contact with $1000 and given the current context, we could fear an execrable scenario. With prices closing in triple digits around the $700 target.
BTC and ETH – The road to the lows of the year revived again?
Like it or not, bear market rallies for Bitcoin and Ethereum become increasingly imminent as their prices approach their lows for the year. First, their Weinstein Phase 4s don’t show excitement. And second, the summertime technical bounces were more about the wisdom of the sellers.
With a FED that will raise its rates by 75 basis points the day after tomorrow, in view of inflation that is struggling to slow down, this would fundamentally constitute a headwind to a favorable trend reversal in BTC and ETH prices. Or in the other direction, a catalyst for sellerswho themselves could deliver the coup de grace by pushing down the respective supports of $20,000 and $1,000.
Thereby, a third wave of correction would send the total market capitalization of cryptocurrencies back to previous levels that allowed the last bullrun to take place. On the sine qua non condition that the dominance of Bitcoin resumes its flight. Which would seem to be on track since the beginning of this month. With a phase 1 of Weinstein taking shape week after week.
If we wish to stop the threat of a potential capitulation, the supports would have to hold up again first. And then, a rally in Bitcoin and Ethereum towards $26,000 and $1,700 would temporarily relieve buyers. But to concretely get your head above water, prices need to go beyond this summer’s levels, that is, rally to $30,000 and $2,300 respectively. Except that we are currently running out of fuel for that to happen.
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