It’s a bouncing week in the cryptocurrencies market, after the scare earlier in September. After barely holding its €8600 ($10,000) support, Bitcoin regained nearly 8% to reach €9200 ($10,900) on September 16. Ethereum also appreciates by 8% but some Altcoins are struggling more like EOS, NEM or even Tron which loses 21%. On the contrary, some names of the decentralized finance (DeFi) such as Yearn.Finance (YFI) are already recovering strongly with +60% over the week.
The only question now is whether this correction was just a short one within a major bull market, or whether future declines await us. We should remain cautious as Bitcoin approaches the key €9300 ($11,000) zone where sellers could regain the upper hand. A second bearish phase will probably bring the price below the symbolic $10,000 level. All this in a global economic context where everyone is wondering about the real potential for economic recovery in this new season still marked by Covid-19.
- According to CoinGecko, Market capitalization rebounds well to $352 billion, up from $330 billion last week..
- Bitcoin’s dominance also increased to 57.2%, up from 56.6% last week..
- The best performance in the top 50 is attributable to Yearn.finance (YFI) with +58% over one week.
We invite you to discover our analysis in video ( in French and dated from September 15) :
Sell if signal
- Bitcoin’s price is at 9200€ ($10,900) on September 16, earning nearly 8% over one week. However, the chart is back in contact with a technical area more favourable to sellers than buyers. The fall in prices at the beginning of the month was violent and it is quite possible that there will be a second leg of decline in the market before this correction is truly over. If the price of Bitcoin fails to break out of the €9300 to 9430€ ($11,000 to $11,200) range and the indicators show signs of a reversal, then this will be a sell signal. The price action that will follow will most likely bring the price back to the €8600 ($10,000) support and then to the €8300 ($9700) price zone, likely to be of interest to institutional investors trading Bitcoin on the Chicago Stock Exchange, due to a still unfilled “gap” on the CME futures contracts. These two areas will be interesting for buying.
- Of course, the scenario of an immediate bullish recovery remains possible but less likely in the current state of the market. If the price of Bitcoin closes above 9430€ ($11,200) in the daily timeframe, this will be a buy signal.
Coinhouse recommendation :
Sell if signal
- Ethereum (ETH) also rebounded by 8% over the week to stand at €306 ($364) on September 16. But it is also approaching a powerful zone of resistance: that of €340 to €350 ($400 to $420). Same scenario as for Bitcoin: if the price struggles to cross the zone, if buying activity is not sustained and indicators show signs of a reversal, sell signals will be gathered. At the very least, a return to the 265-285€ ($312-$338) zone is to be expected, and then to the 247€ ($290) level if the bearish movement is strong. These two zones will be strategic for purchases.
- If the resistance of €350 ($420) is breached with a daily close, the bearish recovery scenario will be invalidated. We will then wait for the price at the €370 ($440) level.
Coinhouse recommendation :
Buy on support
- Chainlink (LINK) is losing 5% this week at €9.30 ($11). Last week, its chart has already come in our technical buy zone between $8.10 and 10$. As the correction is surely not over on the market, the probability is high that the price will make a double push in this zone. We will then monitor several indicators to obtain new buy signals in this zone. As long as the price stays between $10 and $13, there is nothing to do but wait for the market to make a decision. A strong breakout at the $13.50 level can be interpreted as a buy signal if the price does not eventually return to our technical buying range.
Tops & flops of the week (top 50 marketcap)
1- Yearn.finance (YFI) : +58%
2- Ontology (ONT) : +31%
3- Theta Network (THETA) : +29,7%
1- TRON (TRX): -21,8%
2- Compound (COMP) : -12,7%
3- NEM (XEM) : -7,3%
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