Crypto market today: Bitcoin (BTC), Ethereum (ETH), SHIBA INU (SHIB), Telcoin (TEL) - 17th September
Bitcoin continues its attempts to gain a foothold above $48,000. On Thursday, the candle had a slight bearish close, but today, the first cryptocurrency recovered from losses once again and began to storm resistance.
The larger the timeframe, the more reliable the signal on the chart. That’s why we use a daily chart that is optimal for most (one candle – one day). It allows to get a bird’s-eye view, identify signals, and assess the long-term potential of any currency.
However, using larger timeframes has its downsides, too. Along with the accuracy of the signals, one has to accept that it can take days, weeks and even months to process them. There’s no guarantee that what you can see on a 1-day timeframe will work on the very same day or at least the next one.
Right now, Bitcoin is trading at prices close to $47,950. This movement is caused by the continued formation of the bull wedge pattern that will be possible to leave in case the price grows higher and reaches a new local maximum.
The formation is confirmed by the triangle made up of the positions of the highs and lows. So globally, the first cryptocurrency is still sending strong bullish signals, telling us about the high potential for continued growth.
The dynamics are accompanied by the smooth narrowing of the trading channel, which forms a triangle. At this stage, BTC is trying to avoid nearing the lower border of the triangle again and break above the resistance level.
However, so far, everything is indicating that there is not enough volume for a breakout on the buyers’ side. The bulls are struggling to fight the bears, but so far, that is not enough for the price to go any higher. Ideally, the market needs the help of a single big buyer or a large number of retail investors, many of whom will not enter positions as long as they feel uncertain.
The recent advances assisted BTC in leaving the purple trading channel. However, there is still influence from the pink downtrend range, which appeared after the last BTC drop to $43,000, and the upper limit of which is the actual dynamic resistance.
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. Should it go any lower than that, we’d be talking about a crypto-winter coming.
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.
Locally, Bitcoin is still trying to break through significant resistance. And there will be problems on its way from $47,000 to $52,000. On the other hand, the recent dumps have driven many shorters to open deals, and the liquidation of their positions will also bode well on the dynamics of BTC.
In case of a lack of strength on the bulls’ part, the first cryptocurrency is likely to face more pullbacks. However, in the big picture, they won’t be significant. The most plausible scenario here is one in which BTC will repeat its steady climb above $50,000. Thus, we’d be looking at a lengthy struggle until BTC finally gets to the key price level.
On the hourly chart, the price of BTC once again shows consolidation, seemingly preparing to take a leap above. The drop on 7th September made us lose quite a bit, and now we’re going to have to keep our shoulders to the wheel if we are to make up for those losses.
Yesterday was a red candle day for Ethereum.
The second-largest cryptocurrency has left the blue upward trading channel and is now showing the tendency to fall below.
At the time of writing, ETH is changing hands at around $3,560.
With the support level of $3,250, it has pretty solid ground to bounce off in case of a drop.
On the other hand, if Bitcoin continues to show positive dynamics, then Ethereum will be able to break even higher on its own.
If the largest altcoin enters the area near $4000, it will start suffering the pressure from the dynamic resistance formed by the two global highs ($4600 and $4100).
The Fear and Greed Index
The Fear and Greed Index once again took a few steps into the fear zone.
For us, that is a signal that negative sentiment is starting to spread across the market. However, fear is still better than extreme greed, as it allows us to purchase assets at bargain prices and ultimately ride the wave of the future uptrend, making maximum profits from it.
TOP 10 altcoins
The top ten cryptocurrencies per CoinMarketCap are back in the red. The recent market negativity is starting to take its toll, although so far, not much has changed. A slight rebound on BTC’s part caused the largest altcoins to steadily lose in value.
The only exception was Polkadot (DOT), which managed to stay in the profit zone even though it didn’t do anything remarkable.
SHIBA INU (SHIB)
As uncanny as it sounds, SHIBA INU (SHIB) becomes today’s
top dog gainer among the TOP-100 cryptocurrencies according to CoinMarketCap.
This altcoin, despite being essentially a hype copycat (or copydog?) of Dogecoin (DOGE), has managed to bring its traders over 40% of profit over the past 24 hours.
However, judging by the chart, without the support of the world’s most famous crypto dog lover Elon Musk, SHIB is unlikely to grow any further, as the coin is hardly of any interest on its own.
The loser of the day is Telcoin (TEL). This asset has already brought its holders more than an 8% loss over the past day.
Even though the coin is losing in value, it still has a good chance of growing in the long run. TEL is already moving within a triangle that it is likely to breach with a green candlestick.
The cryptocurrency market is still trying to recuperate the losses after the blow it suffered because of the dumps on 7th September. Ethereum has abandoned all hope to act independent and now is quietly mirroring the dynamics of Bitcoin. Most of the altcoins whose value is darting from side to side are likely to follow suit.
The market is far from stable. But then again, when has it ever been? Any movement can be beneficial. Don’t neglect risk management and don’t forget about stop-losses.
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I believe in the bright future of crypto. I have been investing since 2017 and look to share my experience in, and thoughts on, crypto and the blockchain.
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.