Futures Analysis: Bears Destroy Bulls’ Plans

Disclaimer

Financial market forecasts are the private opinions of their authors. The current analysis does not constitute a recommendation, trading guide or investment research. ForkLog and Bybit are not responsible for the results of work that may arise when using this material to make trading decisions.

Last week, bitcoin broke the psychological mark of $ 50,000 and closed the second green candle on the monthly chart. Ethereum comes close to all-time highs around $ 4385.

However, on September 7, a strong correction took place in the market: the price of bitcoin at the moment collapsed by almost 20%, and Ethereum – by 24%.

Is recovery possible in the current situation? Analyzing the price levels of Bitcoin and Ethereum on the Bybit cryptocurrency exchange.

BTCUSD

After two weeks of consolidation below the $ 50,000 level, the bitcoin price was able to break through the resistance. However, this move was not supported by high trading volumes.

Official repair site Asic for mining cryptocurrencies in Russia.
Consolidation and support volumes on the daily chart BTCUSD Perpetual Contract (Bybit). Data: TradingView.

Unsuccessful retest of $ 50,000 led to a decline to the level of $ 42,600. A technical rebound followed from this level, which traders used to fix short-term longs. 

Market participants are in no hurry to buy bitcoin amid a reversal of the mid-term uptrend, which could lead to retesting $ 42,600. In this case, the next strong support will be at $ 37,460.

ETHUSD

Break of resistance at $ 3350 ETHUSD led to impulse growth of Ethereum to levels above $ 4000. However, after that, the price of the asset dropped to $ 2950.

Resistance level on the daily chart ETHUSD Perpetual Contract (Bybit). Data: TradingView.

If the current downtrend continues, Ethereum may retest the $ 2950 mark. At the same time, the next potential support will be the $ 2440 level.

conclusions

After bitcoin grew by 40% in August, traders began to take profits and use them to buy altcoins. Altcoin Season Signals the End of the Current Growth Wave.

After the breakdown of the psychological mark of $ 50,000 Fear & Greed Index fell from extreme greed to neutral 47 points. To change the market sentiment, you need to see the continuation of the downward dynamics, which can finally break the medium-term uptrend.