Bitcoin and Ether Market Update August 25, 2022
The total crypto market cap increased by $38 billion for the period since Monday and now stands at $1,046 billion. The top ten coins are all trading in green for the last 24 hours with Ether (ETH) and Solana (SOL) adding 4 and 2.6 percent respectively. At the time of writing bitcoin (BTC) is trading at $21,640. Ether (ETH) is at $1,700.
Bitcoin closed the trading day on Sunday, August 21 at $21,520 but not before hitting $21,850 intraday. This was the second consecutive green candle on the daily chart for the biggest cryptocurrency after the 10 percent crash last Friday. The old horizontal resistance around $22,000, where the price topped in late June and early July, was once again a major obstacle in front of bulls. The coin closed the seven-day period with an 11.4 percent loss.
The weekly chart presented us with a clear bear flag pattern below the 200-period EMA.
What we could see next is a re-test of the sub-$19,000 area.
On Monday, the BTC/USDT pair fell to $20,900 in the morning but managed to recover in the evening part of the session eventually closing at $21,400 with a small loss.
We saw the exact same price action on Tuesday, but this time bitcoin turned green at the candle close.
The mid-week session on Wednesday came again with high volatility. BTC was trading in the $21,100 – $21,900 range before stopping at $21,360.
The current price action could be another bear flag in the making, but we cannot rule out the possibility of a short-term pump to fill the created fair value gap before the continuation of the downtrend.
What we are seeing on Thursday, August 25 is a stable increase of the BTC/USDT pair to the $21,650 mark.
The 24-hour volumes remain below the average while the Relative Strength Index (RSI) is close to its mid-range.
The Ethereum Project token ETH lost 16.2 percent during last week’s trading after suffering rejection at the 21-period EMA on the weekly timeframe chart. The $1,850-$1,920 zone is also where the February 2021 resistance and May 2021 support were situated.
On Sunday, August 21, the ether closed in green with a 3 percent increase.
The new week started with an early drop to $1,530 in the morning. Bulls, however, were quick to react and erased all losses to allow the coin to close in green.
The Tuesday session was no different and the ETH/USDT pair continued to move in the upward direction, absorbing all sell orders. It added another 2.8 percent for the day and hit $1,666.
The third day of the workweek was volatile, but still, neither bulls nor bears were able to take over control and change the pride direction in their favor. ETH closed almost flat.
What we are seeing on Thursday, as of the time of writing this market update, is a good buying volume and a push from buyers up to the 21-day EMA.
The price action slightly reminds us of the February 2021 correction during which a new lower low was made but the ether surprisingly reversed to the upside.