Trend shift this week in the cryptocurrency market: the main altcoins are back into bull territory. Ethereum gains 20%, XRP 13%, and other top 50 cryptoassets also gain more than 10% over the last week. At the same time, Bitcoin is stable at +1.50%. It remains in its consolidation pattern and volatility is at its lowest. Are we at the beginning of a new”Alt season” or will we have a similar scenario we saw at the beginning of 2019, with altcoins leading the way before Bitcoin starting a new bull cycle on its own?
According to CoinMarketCap, market capitalization is recovering well, to 271 billion dollars from 258 last week. An increase mainly due to altcoins since the dominance of Bitcoin is dropping to 67.6% of the market share.
But that doesn’t mean you have to fomo. Many altcoins had dropped significantly since the beginning of the summer, assets like Ethereum losing up to 50%. We still have to wait to see if this bullish trend is sustainable. It will be determined by how the trend direction of Bitcoin when it will end its consolidation pattern. This week, we will focus on the price levels to keep in mind.
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Buy on break up signal
Same recommendation on Bitcoin this week, because its price moves very slowly and volatility is at its lowest. It is necessary to wait and be ready to operate if the price arrives on specific price levels. Bitcoin gains 1.51% in one week and, trading around €9300 ($10,200) on September 18. Be careful, volatility could return suddenly with strong price movements. The levels to be monitored are still:
- The support level between €8200 and €8400 ($9100 and $9400). It will be a sell signal if we break down this support.
- The downtrend line now located around €9400 ($10500). A break up could be a first buy signal, with some conditions: a clear increase in volumes and a quick continuation of the uptrend.
- The horizontal resistance at €9900 ($11 000). If the price rises above this level with confirmation on the volumes, this will be a buy signal on Bitcoin.
Very nice week for Ethereum with nearly 20% gains in seven days, standing at €193 ($213) on September 18. Our medium-term buy zone between €145 and €160 ($160 and $180) has therefore proved to be interesting for accumulation, as we said last week.
The 50-day moving average, which was below $200, was broke up on September 16, with volume. A first positive sign for Ethereum. However, the resistance at €212 ($236) needs to be break to confirm a long-term bull recovery. It is now interesting to hold previous buys. Some new buys could be considered if the €212 resistance is clearly broken up.
Litecoin is also recovering this week, with an increase of more than 6%, at €68 ($75) on September 18. However, this recovery is less impressive than on other altcoins like Ethereum.
The price of Litecoin has not yet returned to the zone between €70 and 76€ ($77 and 85$), in which the 50-day moving average is also located. As long as the price remains below these levels, buying Litecoin remains too risky. A good scenario for buying would be a consolidation and then a break of the €76 ($85) resistance. The volumes as well as the Bitcoin trend should be monitored before taking any position on Litecoin.
Top & flops of the week (top 50 marketcap)
1- Cosmos (ATOM) : +31,62%
2- Ethereum (ETH): +19,84%
3- Dash : +15,24%
1- Chainlink (LINK) : -8,69%
2- Binance Coin (BNB) : -2,66%
3- Bitcoin Gold (BTG) : -2,23%
Hot crypto news
The French Minister of Economy Bruno Le Maire confirmed that trades between cryptoassets will be exempt from taxes. However, the profits will be taxed when selling the cryptoassets. This will apply to purchases of goods via cryptoassets if a capital gain has been realised.
France and Germany are opposed to the Libra project. Bruno Le Maire explains that Facebook’s project threatens the “monetary sovereignty” of governments. In Germany, the Grand Coalition also opposes Libra. Since the Libra association is located in Switzerland, France and Germany would be limited to blocking applications supporting Libra, but not the project itself. They could also prohibit merchants from accepting it.
- In anticipation of the launch of the Future Bitcoin daily and monthly on September 23rd, the “Bakkt Warehouse”, a regulated custody service, is launched.
- The Electric Coin Company has solved a long-standing problem by creating a technique that allows ZKPs to be used without a trusted configuration as it was the case until now.
- DeFi does not stop there. SwanDAI is a new type of asset that allows you to obtain a hedge on a position on the DAI.
- Libra met Friday with representatives of 26 central banks, regulation and roadmap for launching Facebook cryptocurrency were on the agenda.
- The FATF Financial Task Force had made many recommendations regarding cryptoactives, the Korean market place OKex decided to exceed the regulator’s expectations by delisting from its market 5 “anonymous” cryptoactives (XMR, DASH, ZEN, ZEC, ZEC, SBTC) that could pose compliance problems on money laundering.
Investors’ attention is drawn to the fact that the content of the articles does not constitute financial advice.
Investing in cryptoassets involves a risk of total capital loss.
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