The total crypto market cap added $6 billion to its valuation for the last seven days and now stands at $1,951 billion. The top 10 coins were all in red for the same time period with Binance Coin (BNB) and Polkadot (DOT) losing 14.4 and 13 percent respectively. Bitcoin (BTC) is currently trading at $43,845 while ether (ETH) is at $3,105.
Bitcoin closed the trading day on Sunday, September 19 at $47,235 or right at the 21-day EMA on the daily chart. Bulls were rejected at the $48,860 horizontal resistance a day earlier and could not extend the rally to the zone above the psychological $50,000 mark. The coin ended the week with a 2.64 percent of prince increase.
The news about the indebted Chinese property giant Evegrande started to affect both the traditional and cryptocurrency markets in a negative way and they started moving downwards.
On Monday, the BTC/USDT pair dropped 8.87 percent, erasing $4,4240 from its market cap. The coin temporarily broke below the previously stable demand zone and touched $42,400.
The Tuesday session was no different and the biggest cryptocurrency continued to move South towards the already established support/resistance line near $38,000. It lost another 5.8 percent and ended the trading day at $40,587, hitting sub-$40k levels during intraday.
On Wednesday, September 22 bitcoin finally bottomed. Buyers stepped in and pushed the price all the way up to $43,569 completely erasing the losses from the previous day. The formed bullish engulfing candle was a sign of strength in the market as more and more participants re-entered into their long positions.
BTC confirmed the engulfment on Thursday by moving up to $44,900, above the previously strong demand zone.
The last day of the workweek, however, came with a sudden market crash. The price of bitcoin dropped all the way down to $40,650 before partially recovering to $42,900 as news about renewed anti-cryptocurrency activities from China started to circulate.
Even though the news was just a recycled version of what was already known, the market reacted and turned red.
The Saturday session was relatively calm, but then on Sunday, the BTC/USDT pair was highly volatile. Still, it managed to close in green, at $43,200.
The Ethereum Project token ETH reversed to the downside last week, on September 16 and by Sunday it had already erased 7.9 percent of its value. The coin broke below the lower boundary of the uptrend corridor and reached the $3,300 horizontal support. The ether was 2.24 percent down for the week, trading in the wide range between $3,694 – $3,121 during that period.
On Monday, the ETH/USDT pair extended its losses below the mentioned area. It fell down by 10.6 percent and lost the previously solid $3,000 support line.
The Tuesday session was a continuation of the market correction. The ether dropped to $2,651 in the early hours of trading then partially recovered to $2,772.
The chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler shared his thoughts on the cryptocurrency space late on Tuesday by mentioning it needs more regulation and enforcement to provide safety to investors comparing the industry with a casino from the Wild West.
The comments, however, were nothing new as the SEC’s position has been known for quite a long time. On Wednesday, the markets turned green again and ETH was no exception. It climbed up to $3,072, increasing by 10.7 percent.
On Thursday, September 23, the ETH/USDT pair formed a second consecutive green candle on the daily chart and closed the day at $3,151.
The move, however, was not supported by high trading volumes and on the next day, the price reversed its direction. It fell to $2,947 after touching $2,726 during intraday.
The first day of the weekend came with a flat session during which neither bulls nor bears were able to take over control.
Then on Sunday, September 26, the selling pressure was eased and buyers pushed the price up to $3,056.
The popular DeFi project that focuses on utilizing fiat-pegged stablecoins to provide its users with maximum benefits, continued to outperform a big part of the coins in the Top 100 list and is already few steps away from #10. The coin was extremely volatile during the last seven days trading in the wide range between $24 and $41 but still managed to register a price increase of 5.6 percent for the period.
The price of the LUNA/USDT pair though fell back below the 161.80% Fibonacci extension level on the Weekly chart and is currently struggling to find a higher support line.
We already know that the previous all-time high near $24 is a solid support that was tested two times in the last three weeks.
The next objective in front of bulls is to avoid big pullbacks that might be caused by the BTC volatility, then consolidate and try to revisit the $45 mark.
Altcoin of the Week
Our Altcoin of the week is Tezos (XTZ). The already established open-source blockchain platform for assets and applications that are designed to actually upgrade itself over time continues to grow in times when the entire market is registering double-digit losses.
The XTZ/USDT pair remained flat on a weekly basis, but is 71 percent up for the last five weeks and trading 215 percent higher than the July low. The price of Tezos avoid big declines during last week’s market pullback and even temporarily climbed above the all-time high of $7.1, but was unable to confirm the breakout. The next goal for buyers will be to re-take and consolidate above that mark.
The altcoin is currently ranked at #31 with a total market cap of $5.5 billion.
Traders are starting to look for alternative Layer 1 or Layer 2 scaling projects to invest in. Tezos already has a working product with a stable environment and advanced ecosystem of tokens. Its price is considerably lower compared to the already overextended Layer 1 platforms.
As of the time of writing XTZ is trading at $6.4.
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