The bearish momentum hasn’t ended within the cryptocurrency market simply but. After the 2 bearish legs down available in the market over the last 2-3 weeks, cryptocurrencies made some first rate positive aspects within the final two days, after the reversal, which appeared that the decline was over in cryptocurrencies and the reversal was underway already.
However, right now we’re seeing one other crash decrease. In truth, we’re in the course of it, as cryptos are nonetheless declining, however I believe they may have reached the underside once more, if it is a technical transfer. In any other case, the decline may proceed, if there’s a stronger purpose for this crash. I’m taking a look round to see if I can discover every other causes for the crash, and can let you recognize if I discover one.
Bitcoin Crashes $4,000 Decrease
Bitcoin heading towards $40,000 once more
Bitcoin climbed above $50,000 in August, through the bullish interval, and it received fairly near $53,000 early this month. However, the bearish reversal got here, and BTC/USD fell under $50,000 in a fast transfer through 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 effectively on the every day chart, nevertheless it received damaged on the second bearish wave, which occurred on Monday and Tuesday this week. Nonetheless, the 100 every 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 under $40,000 to $45,000, however, the crash right now has taken the worth down to just about $40,000 once more, so let’s see if the 100 SMA will maintain right now’s crash as effectively.
Ethereum Crashes Under $3,000 Once more
The 100 and 200 SMA stand as assist in the intervening time
Ethereum was trying even stronger than Bitcoin through 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 degree, and the bearish interval got here, which despatched Ethereum under $3,000 within the second wave.
The 50 SMA (yellow) was holding as assist on the every day chart after the primary spherical of promoting earlier this month, then the 200 every day SMA (purple) was offering assist through the second crash. Within the final two days, we noticed some first rate bullish momentum, taking ETH/USD above $3,000, however right now’s crash has despatched the worth in the direction of the 200 SMA once more. So, let’s see if there may be extra to this decline than simply technicals. In that case, the 200 SMA is perhaps damaged, however we’re following the worth motion for now.
Litecoin Testing the Help Zone Round $1,45
LTC/USD threatening the $145 assist zone
Litecoin is trying 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 can finally go down.
So, the crash took Litecoin earlier than the primary assist at $160 and pushed it all the way down to the second assist round $145, the place the 100 SMA (inexperienced) was standing. The worth bounced greater on Wednesday, however we didn’t see any follow-through yesterday, like we did in different cryptos, which was the primary bearish sign. At present, the reversal took the worth under the $145 assist, however consumers gave it slightly push greater. So, this degree is beneath assault now, and if it breaks, it can open the door for additional losses, so we’re watching this assist space.