A new week is coming to an end on the cryptocurrency market, but not just any week. The year-on-year inflation numbers haven’t come down as much as the market expected. The Merge went very well but for all that, it was not enough to revive the market. Some investors are expecting a 100 bps rise in interest rates over the next week. This will be a big catalyst that should allow us to closely monitor the events of the coming days. Especially since Bitcoin is starting to rebuke in force.
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A market that is still evolving in its range
This week I left it failed to break out of its resistance zone at $1030 million. Distributing strength to the bottom following the release of data on the US economy, the price did not care about some technical levels and local support posed at $943 billion before the Merge. However, continuing to unscrew downwards, I left him with an outsized loss of $938 million. The current objective is to repay 943 billion to hope for a greater rebound.
For the moment, we are still in this range which dates back to the end of August. Well, although there have been major movements, nothing tells us that I left it and distributed not to the direction of the resistance at 1030 billion. If the 943 billion are regained, it will be necessary to monitor in H4 the ability of the market to return los 964 and 984 billion where the MA100 and the EMA200 are located respectively. If it does, the market will probably be able to push higher.
However, a loss from current levels with the price closing below $898 billion will be a downside breakout of the range. Thus, it will have a good chance of returning to 835/845 million dollars.
Altcoins are below a technical threshold
For altcoins, the situation is similar to that of the total capitalization combining Bitcoin and Ethereum. You can confirm that it will be impossible to recover the pivot zone at $393/395 million. The target of 378 billion mentioned last week has been achieved. In addition, altcoins have now moved below this level which is resistance after September 13th. If there is already a bearish rejection below this level with a loss of 373 billion, it will likely return to visit the September low at 363 billion.
However, if the altcoins manage to register in a bullish momentum in the short term and they resume the current resistance, it will be necessary to monitor the reaction of the price on higher levels such as the EMA200 which is currently at 387 billion. of dollars, at the confluence of the level at 388 billion. It is clear that a rebound of this magnitude could allow certain altcoins to do well by registering beautiful increases. In any case, as the pivot zone at 393/395 billion will not be able to recover, it is useless to wait several weeks for a trend.
Bitcoin dominance continues its momentum
The bias identified last week on bitcoin dominance was the correct one. The stock also continued to gain momentum as it represented the EMA200 at the H4 cell. Unfortunately, after making a false breakout of 41.32%, the asset bounced off the MA100 and also held above the EMA200. This is a first since since mid-June, the asset has continued to be rejected on these two mobiles. The latter reflected the trend of an asset relatively well. Unfortunately, the challenge is not to lose these two means and to reprimand upwards of 50% Fibonacci, a technical level below which the price is currently trading.
If 41.32% is taken up and maintained, we can consider a continuation of the uptrend. Moreover, the objective will be a return to the red zone at 42.25%, which represents the confluence of the EMA200 and MA100 in the magazine review. If Bitcoin demonstrates a real renewed interest among investors, it looks likely to establish a return to blue zone dominance at 43.20% per week. This could put Ethereum as well as altcoins aside for a while.
Will Ethereum Lose Major Levels Against Bitcoin?
From now on, we find ourselves on a daily time scale to take a step back on the situation of Ethereum against Bitcoin. We can confirm a nice exit from the range which was accompanied by a strong downward movement by forming a top and a bottom lower than the previous one. The trend is therefore bearish, especially since Ethereum has not been able to rise above the upper limit of the range. Currently, there is only the gray area at 0.073 BTC. If it does not re-enter this level, we expect the asset to return to the EMA200 and MA100. Depending on the price reaction, we will have to adapt our scenario.
We can envisage a conceivable Ethereum above this average confluence to distribute to the assault of the short-term trend which is constituted by the EMA 13/25/32. However, if Ethereum manages to hold and lose 0.0682 BTC, it will likely move back into the pivot zone of the log at 0.0651. Such price momentum could allow Bitcoin to push back the dominance and meet the altcoins sideways over the next few weeks.
Decentralized finance losing its attractiveness
FTX’s Cet index represents a collection of decentralized finance tokens. Thus, you can expose yourself to this sector on the rise or fall without investing in a single asset that risks underperforming. Note that the index is currently moving in a range between a sum of 4,091 dollars and a low of 1,966 dollars. So much so that a breakout is not successful, the price always evaluated in this range. Currently, the index has lost several key levels and is in a downtrend. Also, I will lose an HVN even if it is 50% of the Fibonacci of the current range.
If he does not manage to break free on the rise of these new ones, it will be difficult to establish a bullish objective. For now, keep the volume’s LVN profile. However, if it lost ground even though it was at $2,585, index three could quickly shoot up towards $2,276. For now, keep in mind that we are in a compression within the downtrend. Thus, very soon, a negligible movement will take place. While waiting for the index to return home over the next few weeks, it will absolutely have to break free of 3060 dollars.
Here we are at the end of this point on the crypto mars after an incredible week, especially on the fundamentals of the ecosystem! However, it’s not over yet since the one that opens tomorrow will be very important for the financial markets according to the Fed’s decision on interest rates. Confirm that the whole market is in a downtrend. Many assets are on the lower end of the range in which we scale after a while. Simply declare that Ethereum is in a weakness. In parallel, bit by bit bitcoin reprimanded the role of market leader. Will this dynamic continue or will Ethereum go up the end of its nose? Monitoring the levels and scenarios identified in the analysis in order to be ready for the behind the scenes march over the next few days.
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