Welcome to our weekly brief. Here you will find an overview of main events and news from last week and expected events for week 37.
Fundamentals and expected events: week 37
Crypto markets: Last week was a difficult week in the crypto markets with a number of top crypto assets suffering double-digit losses. Bitcoin closed the week down by10%, trading around $45,100, while Ethereum was down by 15% and trading near $3,300. This week started poorly too after a significant long squeeze crashed the price of BTC down to $42K and the price of ETH to $3K. Opportunistic whales took advantage of the overleveraged market and likely engineered a price drop by creating sell pressure that pushed long positions underwater. Last Tuesday, panicked traders were forced to dump tokens at discounted prices and whales were happy to buy. Over 50% of the open interest posted since July was wiped out last week. US$1.2 Billion worth of Bitcoin positions were liquidated on September 7th, almost all of them were long positions. Skew reports that across markets the total amount of liquidations may be around US$2.1 billion.
Stock and commodity markets: There is nervousness on the stock markets. Investors are worried that this week’s data will show continued strong inflation (not only) in the US. That would be an impetus for the Fed to start withdrawing its support packages. Gold is consolidating under the level of USD 1,800 per ounce and oil is up by 3% again.
Important events: Cardano implemented smart contracts with the Alonzo hard fork. After a four-year wait, developers are able to build dapps on the chain. Major in-person conferences are returning to the blockchain industry. This week the Digital Asset Summit commences in New York. There will be several important macro data this week as well, from China, USA and other countries.
Cryptomarkets and marketcap: week 37
The total crypto market capitalization reached 2,138 trillion USD.
Bitcoin’s price is currently 45,179 USD.
Bitcoin’s dominance is currently 39,8%.
Crypto Fear and Greed index is 44, fear.
This article could also interest you: Cryptocurrency prices crash, but is there another way?
BTC has indeed decided to take a deep breath for the next move up. Without touching the main trendline, it has reached the POC zone with enough momentum to very easily cross the 50EMA and 200EMA and is now heading for the Death Cross of these two EMAs. The market is very indecisive and is creating a lot of uncertainty on all TFs including 4H as to which direction to go next. After such significant trading volume on the downside, we would have expected the move down to be over, but it still doesn’t look like it. For a deeper correction the next stop is 39 600 USD. And with the upcoming death cross and the test candle that has already passed and tested the 200EMA resistance, a corrective move to the RSI 50 level is very likely, where if there is no rejection, we can expect another move up. The signal to enter long will be the bullish divergence on the higher and lower TFs.
The bearish divergence on 4H lived up to expectations and the Doge blew through all the important supports and stalled at the zone where the Doge took off after a golden cross up. We are testing a very important zone. The death cross of the 50EMA and 200EMA has already taken place unlike BTC and now these two EMAs in the middle of the channel form key resistance for the next move up. RSI is rising and price is slowly falling, bullish divergence may play an important role now. The Doge is taking his time and the rejection at RSI 50 also suggests a lot. As with BTC, we need confluence on multiple TFs to determine the next direction of movement.
PlatonCoin is holding its price very steadily after the big drop of other cryptocurrencies and continues to consolidate above the support of $0.50-0.55 (EUR 0.42-0.46). The price of PlatonCoin is developing as expected and even the larger drop in the market has not moved the price significantly. The trend line remains a very strong support. The $0.60-0.65 (EUR 0.52-0.56) price of PlatonCoin is the next stop, which is in the middle of a long-term growth channel. PLTC has been showing in recent days what it means to not correlate with BTC and go your own way.
Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.