Uncertainty between an upwards and downwards trend

Crypto market update. 28 SEPT - 4 OCT.

After a peak experienced by the BTC last week, we are looking at slight corrections for the main cryptocurrency, which have also spread to the rest of the cryptocurrencies. Although a week of corrections in the main values this week, the average of the last month continues to give a positive result.
Source: news.bitcoin.com

Looking at the BTC charts over the past month, analysts interpret this as an uncertainty reflection in the BTC market whether we are ahead of a clear downward or upward trend, although moving averages are gradually declining, suggesting some advantage in downward positions.

Source: coin360

In this case, the question is resolved by observing if the support or resistance is broken, so if the price falls below 10,000 - 9,800 dollars we can say that the bears have won this game, and on the contrary, if the price exceeds 11,000 - 11,150 dollars, the bulls would win it by creating a new peak, possibly above 12,000.

A very interesting indicator is the inverse correlation between the USD and the BTC, so in periods of high USD demand there has been a downward trend in the BTC and a retraction of USD demand has coincided with an upward run of the leading cryptocurrency. We are facing a context of great weakness of USD and this is a signal to take into account to continue thinking in positive positions in the BTC market in the medium/long term. This is based on the study of the historical BTC-USD series for years since the appearance of the Bitcoin and especially since the BTC began to be adopted more massively. Before the appearance of BTC, it was only the Gold that had this inverse correlation, so it is easy to consider BTC as digital gold.

However, in a short term analysis and in this current situation of uncertainty, it is very difficult to predict what is going to happen in the next few days and all we have to do is wait for knowing where the break can be, either from above (breaking resistance) or from below (breaking support).

Respecting the Ether (ETH), the bullish run experienced in previous weeks, was not sustainable and in early October, traders pushed the price below the 20 day average, reaching $346 at this time, with a support level at $308, suggesting that sellers or bears are ahead in this case. The average drop is - 1.5% from a price of $368 at the beginning of the week and reaching a low of $337 on October 2nd, before recovering slightly at the end of the week.

However, signs of ETH accumulation are being detected in the Etherium market and therefore there is greater confidence in the potential of its blockchain in the medium/long term. Ethers miners and whales are in hold mode and are showing signs of strength as the 100 largest ETH addresses that do not correspond to exchanges are beginning to accumulate funds. Analysis of the size of these wallets alongside with the decline in ETH transfers to the exchanges, both suggest that the price of the main altcoin will soon recover.

The successful testing of Etherium 2.0 and the metrics showing a drop in ETH sales show clearly a recovery of the second most important cryptoasset after weeks of corrections

Regarding the top 5 altcoins these are the following: Storj with an increase of 18.15%, Zcash (ZEC) with 13.4%, Monero (XMR) with 9.10%, Siacon (SC) with 2.3% and Etherium Classic (ETC) with 0.4%.

Source: criptonoticias

1st) Storj: with a remarkable increase of more than 18% due to the announcement of its integration with NEM (XEM) on a new platform which will be called Symbol by December this year.

2nd) Zcash (ZEC): with a growth rate of nearly 14%, possibly because the Gemini exchange offers withdrawals in ZEC with extra security, which is a great reinforcement for this altcoin focused on privacy. After this announcement, the upward trend continues to this day.

3rd) Monero (XMR): with an increase of more than 9%, due to the fact that the US tax department has hired a firm specialized in Blockchain to track transactions made in Monero, in an attempt to control and monitor them, which causes an increase of interest in owning this cryptocurrency focused on high-level privacy. This crypto is for 4 consecutive weeks at the top 5 cryptocurrencies.

4th) Siacoin (SC): which has a increase of 2.3%, possibly because of the “hackaton” promoted by the Sia team to develop a state-of-the-art application based on its blockchain with a prize of 1.5 million SC (about 4,500 USD) for the developer who wins this competition, this contest has been extended to give them more time to develop the applications.

5th) Etherium Classic (ETC): with a very slight increase of 0.4% due to the implementation of a new security solution to prevent and counteract the 51% attacks that its blockchain has been suffering in recent months. At the end of September it experienced a peak in its price to be corrected in the following days, currently its price holds at 5.14 USD.

On the other side of the coin, the cryptoassets that have been experiencing falls this week are: NEO almost -16%, Link - 14%, Cardano (ADA) - 8%, NEM (XEM) - 6.9% and Ripple (XRP) - 4%.

In conclusion, short-term uncertainty for the main cryptocurrencies, especially for BTC and ETH, although in the long run a large increase in value can easily be expected. There are very consolidated projects and blockchains which are resisting certain corrections which are obviously expected given the bullish run experienced during the previous weeks.

Comments