The bearish momentum hasn’t ended within the cryptocurrency market simply but. After the 2 bearish legs down out there over the past 2-3 weeks, cryptocurrencies made some first rate positive factors within the final two days, after the reversal, which appeared that the decline was over in cryptocurrencies and the reversal was underway already.
However, at present we’re seeing one other crash decrease. Actually, we’re in the midst of it, as cryptos are nonetheless declining, however I believe they could have reached the underside once more, if this can be a technical transfer. In any other case, the decline may proceed, if there’s a stronger motive for this crash. I’m taking a look round to see if I can discover some other causes for the crash, and can let you already know if I discover one.
Bitcoin Crashes $4,000 Decrease
Bitcoin heading towards $40,000 once more
Bitcoin climbed above $50,000 in August, in the course of the bullish interval, and it obtained fairly near $53,000 early this month. However, the bearish reversal got here, and BTC/USD fell beneath $50,000 in a fast transfer in the course of the flash crash greater than two weeks in the past.
The 200 SMA (purple) held as assist for a while, helped by the 50 SMA as nicely on the each day chart, however it obtained damaged on the second bearish wave, which happened on Monday and Tuesday this week. Nonetheless, the 100 each day SMA (inexperienced) got here to the rescue and stopped the decline for Bitcoin. Within the final two days we noticed Bitcoin put up an honest struggle, because it bounced from beneath $40,000 to $45,000, however, the crash at present has taken the worth down to just about $40,000 once more, so let’s see if the 100 SMA will maintain at present’s crash as nicely.
Ethereum Crashes Beneath $3,000 Once more
The 100 and 200 SMA stand as assist in the interim
Ethereum was wanting even stronger than Bitcoin in the course of the bearish interval from late July till early September, because it gained round $140% in worth, climbing above $4,000. However, consumers couldn’t maintain the worth above that massive stage, and the bearish interval got here, which despatched Ethereum beneath $3,000 within the second wave.
The 50 SMA (yellow) was holding as assist on the each day chart after the primary spherical of promoting earlier this month, then the 200 each day SMA (purple) was offering assist in the course of the second crash. Within the final two days, we noticed some first rate bullish momentum, taking ETH/USD above $3,000, however at present’s crash has despatched the worth in direction of the 200 SMA once more. So, let’s see if there’s extra to this decline than simply technicals. If that’s the case, the 200 SMA is likely to be damaged, however we’re following the worth motion for now.
Litecoin Testing the Assist Zone Round $1,45
LTC/USD threatening the $145 assist zone
Litecoin is wanting much more bearish than the opposite two cryptocurrencies now. The 200 SMA was performing as resistance for LTC/USD, regardless of the 2 jumps above it, each of which failed, inflicting the worth to reverse again down. If one thing can’t go up, it’ll ultimately go down.
So, the crash took Litecoin earlier than the primary assist at $160 and pushed it right down to the second assist round $145, the place the 100 SMA (inexperienced) was standing. The value bounced increased on Wednesday, however we didn’t see any follow-through yesterday, like we did in different cryptos, which was the primary bearish sign. Immediately, the reversal took the worth beneath the $145 assist, however consumers gave it somewhat push increased. So, this stage is underneath assault now, and if it breaks, it’ll open the door for additional losses, so we’re watching this assist space.