Digital Asset Insights
Digital Asset Insights #85
In the volatile digital currency market, investors need to be well informed and guided by the predictions of careful analysts. This will help you to know when to plunge into the market and make the best of likely uptrends.
At the opening of the week, Bitcoin price swept the previous weekly low at $18,500 and was very close to collecting the sell-stop liquidity below the June 18 swing low at $17,593. Regardless, the recent sell-off for BTC is an opportunity for patient investors. Investors can expect BTC to trigger a run-up to $19,405, which is the weekly open. However, a flip of $19,539 could catalyze Bitcoin price to retest the $20,737 hurdle, clearing which could result in a swift move to $25,169.
On Wednesday, Bitcoin price has investors on edge as the peer-to-peer digital currency fell below $20,000. The recent breach established a new low for September at $18,271 and wiped out all of the previous swing lows dating back to July 2022. Bitcoin price auctioned at $19,224.
On Thursday, this lackluster performance of BTC caused Ethereum, Ripple, and other adults to lose their volatility. Regardless, patience is truly a virtue before events like this, so investors should exercise it. Bitcoin price failed to hold grounds above $19,000. On September 20, the bears established a large bearish engulfing candle on the 2-day chart while dually have established a new low for September at $18,125
Bitcoin price currently auctioned at $18,927 on Friday. An influx of volume continues to enter the market with the declining price. Still, the Relative Strength Index is near a significant level that has acted as support during previous bull runs. Additionally, there is a divergence between the newly established low and the previous September low at $18,510.
Bitcoin price was in a tough spot with tight consolidation and no directional bias and remained like that for 48 hours. It is possible to market participants could see a bearish spike in selling pressure around the New York open, which could tank Bitcoin price to collect the sell-side liquidity resting below the previous weekly low at $18,097 or the June 18 swing low at $17,593.
A quick recovery after a liquidity run will signal a bullish narrative and propel Bitcoin price to August month’s lowest point at $19,508. A flip of this level could send BTC to $25,200, which is August month’s highest point, if it can overcome the other hurdles in between.
While things look ambiguous for Bitcoin price, a breakdown of the $17,593 level without a recovery could flip this barrier into a resistance level. This development will invalidate the bullish thesis for BTC and potentially see BTC crash to $15,550 the next stable support level for the cryptocurrency.
Ethereum price created a string of higher lows since August 29, but after the third swing low at $1,406, the sellers took over, crashing the altcoin. As a result, ETH dropped 17% in three days at the opening of the week, which sliced through the $1,355 to $1,440 support area. Ethereum price traded at $1,280,
On September 19, the bears successfully breached the previous swing low established in August and the June 26 swing low at $1,352. The bears forged a new low for September at $1,280. Shortly after the liquidity hunt, the bulls retraced half of the decline, leaving investors puzzled as to what might occur next,
Ethereum price auctioned at $1,349 on Wednesday, and on Thursday, the price seems to be hovering in a descending parallel channel after creating three lower lows and two lower highs since August 4.
On September 22, Ethereum Price lost support at $1,300. Ethereum price printed a 2-day candle settled at $1,245, the lowest trading price for ETH since the middle of July. Ethereum price currency traded at $1,262.
Ethereum price could revisit the twelve-hour demand zone, extending from $1,234 to $1,191 before deciding on a directional bias. Due to the high correlation between ETH and BTC, the former will wait for signals on where to head next.
A bounce in Bitcoin price followed by a recovery above August’s low at $19,508 could see Ethereum price catalyze a move to $1,423. In a highly bullish case, ETH could attempt a retest of $1,500.
Ripple price retested the $0.381 resistance level after a 20% rally on Tuesday, but the sellers at this level, combined with the deteriorating market structure, pushed the XRP price lower. As a result, holders experienced an 11% drawdown to where the remittance token currently trades at $0.340.
Ripple's XRP price is on the brink of glory or destruction. The digital remittance token has rallied 20% since its previous decline during September 12's CPI release. Still, the uptrend has not been easy as it has produced strong pullbacks with large influxes of volume along the way.
Ripple price has successfully blown past the $0.381 resistance level after a 24% leg-up. However, due to the FOMC meeting, there might be a sudden but brief pullback to $0.381. XRP price auctioned at $0.4373 as the digital remittance hovered above an ascending parallel channel. An influx of volume has entered the market, compounding the idea that more gains will come for the digital remittance token.
Going into the new week, Ripple’s price rallied 74% in a week and is currently hovering above the $0.464 support level. If this barrier breaks, the XRP price could tank lower to sweep the September 23 swing low at $0.456. However, a bounce here could propel it to $0.561. The bullish case depends on the momentum and directional bias of the Bitcoin price. A failure to do so could result in a steep correction.
On the other hand, if the XRP price fails to move higher, it will denote a lack of buying pressure and that investors are booking profits. A breakdown of the $0.464.
Cardano price auctioned at $0.469 at the opening of the week as the bears recently breached both the 8- and 21-day simple moving averages.
Cardano’s price showed a steep decline, which could extend further. ADA price has fallen over 70% since the most recent upswing was established from the $0.438 low. Despite the bullish divergences on higher time frames, a sweep-the-lows event is still possible. Therefore, counter-trend traders aiming for liquidity levels near $0.46 may need to re-think where their stop losses should be placed. Cardano’s price auctioned at $0.442 on Tuesday.
Cardano’s price dug below the $0.435 support level on September 21 as it dropped 13%. This move was followed by a quick recovery above the said barrier, indicating a willingness to move higher and the presence of sidelined buyers.
This is a liquidity fractal in formation that signals the start of a rally. Going forward, investors can expect Cardano’s price to rally to $0.472 and retest the $0.505 hurdle. This move would constitute a 14% upswing, but it is not where the upside will be capped.
Depending on the market conditions, participants can look for a flip of the $0.505 resistance level, which will propel Cardano price to fill the imbalance, aka Fair Value Gap (FVG).
In total, this run-up would constitute a 20% gain and is likely where the upside is capped for ADA. On the other hand, if Cardano’s price fails to stay above $0.435, it will denote a weakness in buyers and will lead to a takeover by bears. If ADA produces a daily candlestick close below $0.435 without a quick recovery, the bullish thesis will be invalidated.
Solana (SOL) price dipped another 1% at the start of the previous trading week after traders threw in the towel on Sunday as the event calendar for this week made them run for the hills. A supportive pivot refrained SOL price from making new lows, as just one catalyst could be enough to drive price action into the ground.
SOL price got underpinned by the low of August near $30.21 and has been holding quite well these past few weeks. Once broken below, the Relative Strength Index still has plenty of room to trade lower. That would mean that another 13% of downside potential is at hand and could see SOL price trading at $26 by Wednesday or Thursday when the Fed and the BoE will have made their likely bullish policy statements.
Solana price has day traders watching the bulls closely, attempting to reclaim grounds with the 8-day exponential moving average. The bullish retaliation comes after Solana's recent 22% decline since mid-September. Solana’s price was auctioned at $32 on Thursday.
Investors locked in another 27% gains after Solana’s price rallied to $36.72 at the beginning of September. These frequent rebounds from the same level imply that Solana’s price may have hit the same bottom level but as yet lacks a catalyst to trigger a substantial move north.
Traders searching for long positions must wait for the Stochastic RSI to lift from the oversold region before placing their orders to avoid bull traps or being stuck in an untradeable market. Keep in mind that the 50-day (yellow) Simple Moving Average (SMA) recently crossed below the longer-term 100-day SMA (blue). Although this pattern is not a typical death cross, its formation adds credence to the Solana price bearish technical outlook.