Bitcoin stayed below $19,000 throughout the weekend, despite a handful of short gains. According to market capitalization, the biggest cryptocurrency was last trading at around $18,800, down a little under 1% over the previous day. The drop completed a volatile week that saw the US Federal Reserve and other central banks raise interest rates sharply, as well as declining economic indicators that hint at a recession.
Recently, the market value of the second-largest cryptocurrency was changing hands at around $1,300, down more than a percentage point from the same time the day before. Since the Merge, the Ethereum blockchain’s technological move to a more energy-efficient, proof-of-stake protocol, ETH has been trading downward. SOL and popular memecoin DOGE were both down more than 2%
Bitcoin(BTC)- As prices reversed into a V shape in the middle of August and dropped down to the bottom support level of $18,000 for 2022, the technical analysis of Bitcoin showed a roller coaster ride. The crypto market has suffered during the past several weeks as a result of unfavourable news, including rising CPI statistics, a Fed interest rate hike, and a surge to a 20-year high in the U.S. dollar index (DXY). Consequently, the fear of additional decline among market players has grown.
On September 19th, Bitcoin retested the bottom support zone of $$18,200-18,000. The BTC price is still fluctuating around this support, despite the fact that a week has almost gone. This consolidation indicates that the market players are uncertain.
In any case, this consolidation is reflected on the 4-hour time frame chart in the form of a symmetrical triangular pattern. Theoretically, this pattern generally restarts the dominant trend after a brief break, but a breakout on the opposing side is very likely.
At $19,062 today, the price of one bitcoin has increased by 0.7% intraday. Additionally, the prices have decreased enough to fall under the no-trading zone of the two converging trendlines.
In light of this, a breach below the trendline of support will accelerate the current bearish trend and cause the price of bitcoin to drop below the $18,000 level.
On a contrary note, a candle closing above the resistance trendline will signal an early sign of bullish reversal. As a result, the coin holders may witness another upswing.
Ethereum(ETH)- After reaching local support at $1,240 this week’s midpoint, the price of Ethereum saw a little drop. Meanwhile, the fact that prices are struggling to break through the immediate resistance level of $1,330 suggests that sellers are defending this level strongly. This bullish reversal will be undermined this next week if the selling pressure continues.
The Ethereum price has been declining since the third week of September, despite the mounting bearish sentiment in the crypto market and the US Fed’s interest rate rise. About 70% of the prior recovery from June to August was lost as the cryptocurrency fell, reaching local support at a price of $1,240.
The Ethereum price came back from this support on September 22nd, with an unexpected dip; even so, prices could not exceed the $1,330 barrier. The buyers tried to break through this resistance multiple times during the last three days, but each time they failed, closing under $1,300 and rejecting higher prices.
With a $0.8% intraday drop, the cryptocurrency is presently trading at $1,306. An indication of a resumption of the current slump would be a bearish reversal from this level. As a result of further selling, the Ethereum price might drop by 4.2% and retest the $1,240 support level.
On the other hand, buyers may attempt an uptrend over the $1,300 level if the Ethereum price displays a reversal sign at the $1,240 support level.
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