Crypto market today: Bitcoin (BTC), Ethereum (ETH), Celo (CELO), Avalanche (AVAX) – 31st August 2021
It’s Tuesday, 31st August, bringing you another edition of Cointribune’s crypto analysis! Find out about everything that has already happened in the market and what to expect next in our new article! If you want to read the previous issue of the column, please follow the link. Here we go!
Once again, what many were not particularly happy about, but have been expecting, has happened. Buyers lost the initiative, so Bitcoin price fell below the level of $47,000 again. At the time of writing, the first cryptocurrency is trading near $46,859.
Monday ended with another plunge for BTC, and the daily candle, which opened a couple of hours ago, immediately turned red, which also does not instil much optimism in traders.
The main problem for buyers is the lack of volume. It seems as if the bulk of market players have already withdrawn their BTC holdings from exchanges. Some of them have moved on to highly volatile, but also highly profitable altcoins. Of course, earning on alts is good too, but as long as BTC is in such a passive state, each dump of the first cryptocurrency will be accompanied by the price drawdowns for most of the alternative cryptocurrency assets too, which again bodes ill for traders.
Looking at the current price trend on the chart, we can conclude that BTC is set to return to the purple channel and begin a full-scale systematic decline. Only a large volume of buys will be able to prevent this scenario, which, however, will anyway meet stiff resistance from the bears.
Looking at the lows and highs (purple rectangles) on the weekly chart (one candle – one week), you can easily come to the conclusion that while some of them (highs) are going down, the minimums are going up, which causes the average range of the global trend of the asset in question to be systematically narrowed to a single point. This is how the highlighted triangle is formed on the chart, with the apex pointing downwards.
This suggests that right now, on a global scale, Bitcoin is being evaluated in the market. Bulls and bears are trying to figure out the real value of this asset, so buyers start buying higher and sellers start selling lower. Eventually, this should lead to an area where the interests of both fractions overlap and after a brief accumulation, Bitcoin will move strongly in the direction that benefits one of the parties in this improvised conflict.
More often than not, this pattern ends up with a powerful move upwards, which in our case could mean that we are likely to see a systematic rise of around $30,000 from the current levels. However, within this scenario, a correction down to $25,000 – $28,000 has to be allowed. Unless, of course, BTC decides to break through a resistance at the exact point where it is now.
Naturally, we should not forget about the influence of the fundamental factors, such as the news, which brings more and more interested players to the market. However, the news could be both positive and negative, which could also seriously adjust the BTC dynamics.
The second most capitalised cryptocurrency continues to move near the upper end of the triangle. The battlefield does not appear to be dominated by either side of the impromptu conflict.
It seems as if Ethereum has no way of deciding whether it should follow Bitcoin’s lead or whether it is already independent enough to set its own rules of the game.
The apex of the triangle has no clear direction, which characterises the potential move as uncertain. It is equally possible for Ethereum to rise or fall.
However, the fact that the consolidation highlighted on the chart shows that the ETH price is mostly holding near resistance, speaks in favour of the rise. This means that bulls and bears alike have virtually agreed that value of the second most capitalised cryptocurrency is above $3,000. It is likely that once the accumulation ends, Ethereum will head towards the zone near $4200, where a new trading channel will be formed.
The Fear and Greed Index
The Fear and Greed Index didn’t budge. Apparently, yesterday’s series of longs liquidation and BTC’s sudden retreat below $47,000 was the most expected outcome for traders. That’s why no one was scared.
The market lacks volume. Once it’s gained, there will be a serious price move, capable of significantly outplaying the movement patterns of most of the altcoin market. We’re looking forward to it. Trading in a market as it is now feels like marking time.
One way or another, once the ice is broken we will be in for a fascinating show, where the bulls or bears will lose a lot of their leveraged investment, which will further move the price into the winners’ area of interest.
Top 10 altcoins
The top ten cryptocurrency market according to CoinMarketCap is blushing with shame. Driven by Bitcoin’s sweet talk, a selection of favoured assets have been trapped and have once again slumped in value. The only exceptions were Polkadot and the unbreakable, setting new price records one after another, Solana. I wonder if SOL will continue its marathon if BTC drops by a few thousand dollars more.
Binance Coin has already lost about $50 from its last local high. It is likely that Changpeng Zhao, with his extensive tweeting, will soon increase his presence within the media and social networks.
Tuesday’s top gainer is not Solana (who would have thought), but Celo. Even despite the drawdown after an impressive pump, this altcoin has brought investors more than 50% profit in the last 24 hours. According to CoinMarketCap, the weekly value of this parameter exceeds 100%.
Judging by the chart, Celo (CELO) has a good potential to consolidate above the current support. In this case, after accumulation, the price of the asset will move to new highs.
The loser of the new day, among the top 100 cryptocurrencies according to CoinMarketCap is Avalanche, which has already lost about a third of its last local high. During the day, Avalanche has already made more than an 8% loss to its investors. Within the week, this figure crossed the 16% mark.
It looks like AVAX correction will continue until the asset reaches a support, from which a new accumulation can start.
It appears that Bitcoin has no intention of breaking through what has become a key resistance for the entire digital asset market so far. Against this backdrop, the lazy drift of most altcoins can be deceptive and turn into solid gains just as much as losses in the blink of an eye. Don’t forget about risk management and don’t neglect stop-loss orders.
Photographe, Vidéaste, webdesigner et enfin rédacteur pour CoinTribune: l’image, le digital et la blockchain sont mon dada.