Is the correction already over on the cryptocurrency market?
Julien Moretto – 16 Sep 2020
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) :[passster password=”S8t0sh1Pr1n64″]
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%
In this article, all information is given for information purposes only, even if it has been established from serious and reputable sources. It does not constitute an offer by Coinhouse to buy or sell digital assets, or an offer to provide services on digital assets, nor does it constitute advice, encouragement or a recommendation to operate on the digital assets in question. It constitutes simple information over which the user retains absolute control. We inform you that if you choose to invest in digital assets, you must be aware of our general terms and conditions of sale (https://bit.ly/35U2Jov) and accept the various risks listed and defined on our legal warning page (https://bit.ly/2H7EsAP).[/passster]
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