Last week, Bitcoin cleared the $50,000 psychological level and closed a second green candle on the monthly chart. Ethereum came close to an all-time high near $4,385.
However on September 7, the market saw a sharp correction: Bitcoin’s price at one point plunged almost 20%, and Ethereum about 24%.
Is a recovery possible in the current situation? We analyse Bitcoin and Ethereum price levels on the cryptocurrency exchange Bybit.
BTCUSD
After two weeks of consolidation below the $50 000 level, Bitcoin price managed to break the resistance. Nevertheless, this move was not supported by large trading volumes.
A failed retest of $50 000 led to a decline to $42 600. From that level a technical bounce followed, which traders used to lock in short-term longs.
Market participants are not rushing to buy Bitcoin amid the fracture of the medium-term uptrend, which could lead to a retest of $42 600. In that case, the next strong support would lie at $37 460.
ETHUSD
Breakthrough resistance at the level of $3350 ETHUSD led to an impulsive rise of Ethereum above $4000. However after that the asset’s price declined to $2950.
If the current downward momentum persists, Ethereum could retest $2,950. The next potential support would be at $2,440.
Conclusions
After Bitcoin’s 40% rally in August, traders began to take profits and deploy into altcoins. The ‘altcoin season’ has become a signal that the current wave of growth is ending.
After breaking through the psychological $50 000 level, the Fear & Greed Index fell from extreme greed readings to neutral 47. To shift market sentiment, one would need to see a continuation of downward momentum that could ultimately break the medium-term uptrend.
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