Today is Thursday, 23rd September, and this is Cointribune’s Crypto analytics. You will learn about everything that’s been going in the market, and also what to expect next in our new article! If you’d like to read the previous instalment, please follow the link. Off we go!
It looks like the news about Evergrande is starting to take its toll. Over the past day, Bitcoin has drawn a solid green candle, putting on about $3000 in price. At the time of this writing, the first cryptocurrency is trading at around $43,700.
Although so far, there are problems with reaching the $44,000 mark. The situation is made more difficult by the resistance zone near $45,000 – $46,000, seen in the orange trading downward channel. So a rebound below is still possible.
On the other hand, the market has finally got a refreshing surge of positivity. And now is the time to hold our breath for BTC’s new achievements.
Everything is going as expected. Powerful negative news had taken the market by storm just as players became aware of the weaknesses on the bulls’ part and right amid the ensuing confusion among traders. Fanning the flames, it quickly sparked sales, which ultimately deflated the entire market by creating discounts for those who had long since been waiting for them. Following that, when the market reached the point of extreme fear, the news about Evergrande came to the surface, which, after the trading on the stock market began, slightly stabilized the situation in the digital asset market as well.
The bulls are still not strong enough, though. This only suggests that if nothing changes in the near future, we should wait for new, probably rather high-profile news aiming to push people to buy Bitcoin.
Locally, BTC is approaching resistance, which, in case of a lack of both strength and optimistic sentiment in the market, will result in another pullback. At this stage, a fall below $40,000 is unlikely, but we should remember that this probability is still there because the lower border of the triangle, within which the current action unfolds, is the area of $35,000.
Right now, Bitcoin is fighting a bloody battle for every thousand dollars of its price, so even fixing above $44,000 will already be a good push for more optimistic sentiment in the market.
The current movement is still fully in line with the global bullish picture. We are still operating within a triangle whose key element is the “bullish wedge”. Consolidation (accumulation) is an invariable factor in this pattern, which we can also observe on higher time frames. Visually, it looks like a series of green and red candles on the chart, forming towards the upper and lower walls of a narrowing trading range. Instead of two parallel lines, we have two walls (same lines) moving in the same direction, but showing a clear tendency of convergence.
In the big picture, the situation has not changed for Bitcoin. We are still in accumulation, and in case there is a drop, you can take advantage of it. The first key support region is at $40,000, which is also an important psychological level. The next one is $35,000, which acts as a support within the triangle pattern. The next stop on the potential move down is the area around the $30,000 mark, which is the upper border of the expanding descending trading channel (yellow). And the last one is $20,000, acting as the lower border of the downward purple trading range. Only in case it goes any lower than that could we start talking about the possibility of a crypto-winter.
There is no growth without corrections. So you shouldn’t view a mere drop in price as the beginning of the coin’s imminent downfall. Even bulls need to take profits. The idea is that when the price goes lower, you can buy even more assets with the money earned to keep them until the growth dynamics allows you to count on the best.
The current fall of Bitcoin is merely an instance of venting an overheated market and redistributing forces within the triangle. After BTC regains its strength, it will continue to climb and will likely approach the former peak by the end of this year or even set a new, absolute price maximum.
The second-largest cryptocurrency continues to follow Bitcoin. At the time of this writing, Ethereum is trading near $3100 and is currently in conditions identical to those of BTC.
ETH is moving within a downward local trading range, approaching the resistance defined by the upper border of the trading channel. In case of a lack of strength to overcome this obstacle, the asset will pull back below.
At the same time, Ethereum is halfway to the lower border of the triangle, which clearly hints that a reversal and breakout could be possible soon, along with a confident move to the last price maximum. It makes sense to consider buying it.
The fear and greed index has naturally receded into the greed zone. The market is beginning to spread positivity, inspiring people to buy. However, at this stage, there are not as many people willing to jump onto the bandwagon as you would expect, which in turn means that we should await a new wave of incentives coming soon.
When the entire market is in a buying frenzy, the whales will start to sell. When everyone is in a hurry to dump their assets and fix a loss, they confidently gain positions. And that’s what’s happening right now. The more afraid retail investors are, the more big guys will buy. Ultimately, when they’ve bought enough, the pendulum of the market will swing again, and we will start buying in our turn, thus increasing the price of the assets owned by the whales.
And don’t forget about the marginal side of the issue. With the balance tipping towards the bears, thousands of short leveraged trades are open every day. Most of them will eventually be liquidated with losses that will fuel the next round of market growth, simply because that will be more profitable for those whose funds and assets significantly outweigh ours. But in the end, the price of any asset always follows the volume.
In other words: if you want to enter the market, now is the time.
The top ten cryptocurrencies are all in the green. Cardano (ADA) even took back its place in the ranking from Tether (USDT).
A compelling sight, meaning that the news about the prevention/delay of the bankruptcy of the Chinese developer Evergrande, which stirred quite a fuss across the entire crypto sphere, had a positive effect on digital assets and, finally, allowed them to regain their former values. Let’s just hope this isn’t a limited-time promotion.
Arweave (AR) becomes the gainer of the day. The asset has already brought its holders about 32% of the profit. Judging by the chart, the price of AR is being held back by resistance. However, if it does breach that level, then the price can move into the range of $70.
Bitcoin SV (BSV) is becoming the loser of the day. This asset has already brought about 1% of losses to its holders. However, the rest of the TOP-100 is now in the green zone.
The market is showing the first signs of recovery. Bitcoin has finally crossed the $44,000 mark, and all the altcoins from the CoinMarketCap top hundred are actively growing too. It’s too early to pop the champagne, though. There are still many challenges ahead. However, now it is finally possible to trade at a profit.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$62,868.55||-4.73%|
|ETHEREUM (ETHUSD) Ξ||$4,106.66||-1.37%|
|IMM. US (REIT)||$2,720.17||0.17%|
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