Technical Analysis of Bitcoin and Ethereum
The three major US stock indices (Dow Jones, S&P500 and Nasdaq) are back to their lowest prices in two years. Worse for the European Eurostoxx50 index, which with its last monthly close in the red, burning off 75% of the increase it has accumulated since the start of the Covid19 pandemic.
The price of gold, which has always been seen as the leading asset in hedging against rising prices, also accused the sixth consecutive negative monthly close – the worst since 1982 – bringing the quotations back to April 2020 levels as it dances close to into the bear market with a loss close to 20% from the absolute peaks reached in March last year.
Although less painful, the monthly balance of major cryptocurrencies is in the red, confirming the statistics that register September as the worst month of the year. For Bitcoin, the close has been above par in the last 10 years – in 2015/2016 – only twice. The same for Ethereum, which since its inception, with 5 out of 7 negative monthly performances, is fighting for the black jersey with June for the worst month of the year.
Among the few cryptocurrencies bucking the trend are Bitget (BGB)the Asian exchange’s native token launched in July 2021, known to be among the Italian football club Juventus’ partners.
The price of BGB closes the month of September by about 20%. This is the third positive month in a row for a total performance of more than 40%.
A performance that in the last week of September stood out by placing the BGB token on the podium of the best climbs ever.
On Tuesday, September 27, Bitget’s prices reached $0.21 per token, just a step away from the record high of $0.215 reached last March.
Profit-taking is prevalent in recent hours, which has caused an increase in supply with prices retreating to the $0.18 area. Physiological retracement in a phase of profit taking that does not affect the solid bullish trend in the medium and long term.
The first week of October, as well as the last quarter of the year, restarts in the green with most major coins just above parity.
The preliminary increases since the start of the day do not, at the time of writing, allow for a recovery from October’s red restart, which last weekend saw prices hovering in the lower range that characterized the trading area in the latter part of September. .
Bitcoin – Technical Price Analysis
The last weekend in September ends against the trend of the last few days that characterized the last decade of the month.
Last week actually contained highest trading volume since mid-June.
In contrast, volumes between Saturday and Sunday recorded the lowest average weekend trade since early August, with prices continuing to move at the lower end of the channel that has supported price swings since mid-September between $20,000 and $18,800.
By current midweek, the direct sub-monthly cycle (15-20 days) that began with the September 21 lows is expected to close.
A reason that recommends waiting for the confirmation of the industry to understand the strength of $18,800 hold and go back to consider upside operations.
Ethereum – Technical Price Analysis
The decor relation between Bitcoin and the queen of altcoins continuepp.
Last week’s decline close to just over 1% added to the weakness accumulated earlier and caused a double-digit monthly drop (-14.5%).
Despite an apparent slowdown in the decline, this is the third straight losing close for Ethereum. This has not happened since June.
With prices moving just above the $1,200 warning threshold, it now becomes necessary for ETH to return above $1,400 as soon as possible to give the first sign of a return to buying.
Technically, the sub-cycle of the monthly magazine is in an unclear phase. The weak recovery from the last low on September 21 makes it unclear whether prices are in a phase of weakness or a useful accumulation principle to push the next uptrend in line with the new monthly cycle.
When in doubt, it is best to wait for the price development in the next few days. It is important not to go below the $1,200 mark so as not to risk an explosion of downward speculation that would risk bringing prices back to the $1,000 range.
