Last Week’s Market WrapAfter the crash earlier this year which lasted until mid-June, cryptocurrencies entered a bullish period and most of them inclu
Last Week’s Market Wrap
After the crash earlier this year which lasted until mid-June, cryptocurrencies entered a bullish period and most of them including Bitcoin traded in an ascending channel until the middle of August, when the decline resumed again. The decline continued until Tuesday last week, when we saw another push to the downside. That flushed some weak stops which stood below the support zone at $19,000 for BTC and the ones that stood below $1,500 for ETH.
Although, we saw that opportunity to open a buy signal, which now after the reversal later in the week, looks pretty good. We saw a reversal on Wednesday, but the big bullish move came on Friday, which pushed Bitcoin above $20,000 again. At the moment most cryptocurrencies are bullish but the bullish pressure is fading.
The Data Agenda This Week
Ethereum which is the second largest cryptocurrency is starting a technology changeover this Tuesday on September 13, moving from Power-of-Work (PoW) to Power-of-Stake (PoS). Once complete, it should make transactions cheaper and lower its carbon emissions by 99%. If the Ethereum switch succeeds, Bitcoin and other cryptocurrencies will be under pressure to deal with this problem. The Ethereum Merge is likely to cause a reduction in Ether’s supply, making it a deflationary asset.
This week the volatility picked up somewhat in the crypto market and we saw a decline in the first half. Although our crypto signals such as the buy XRP, buy BTC and buy RUNE signals survived the decline and we even closed one of them in profit, as cryptocurrencies reversed higher.
Closing the BITCOIN Signal in Profit
Bitcoin turned bearish since failing at the 100 SMA (green) on the daily chart in June. It broke the ascending channel to the downside and has completed three bearish waves since then, the last one taking place last Tuesday. But we saw a decent bullish move on Friday which pushed the price above $21,000, where we decided to close the trade which we opened close to $19,000.
BTC/USD – Daily chart
The 200 SMA Turning Into Support for RIPPLE
Ripple was on a bullish trend until late August, with the 200 SMA (purple) acting as support on the H4 chart. But the sentiment turned bearish in the crypto market and XRP fell below all moving averages. Although after the bullish move last Friday, Ripple pushed above the MAs and the 200 SMA turned into support again, which is another bullish signal, so we are keeping our long trade.
XRP/USD – 240 minute chart
www.fxleaders.com