The total crypto market cap increased by $23 billion for the period since Monday and now stands at $976 billion. The top ten coins are all trading in red for the last 24 hours with Solana (SOL) and BNB (BNB) losing 3.8 and 3.6 percent respectively. At the time of writing bitcoin (BTC) is trading at $19,980. Ether (ETH) is at $1,568.
Bitcoin closed the trading day on Sunday, August 28 at $19,550 after a three-day losing streak during which it erased more than 9 percent of its market cap. The biggest cryptocurrency was very close to re-testing the last weekly candle close low near $19,300.
On Monday, bulls started the new seven-day period by pushing the price up to $20,270 or 3.6 percent higher in an obvious short squeeze attempt.
The Tuesday session was slightly different. The BTC/USDT pair rallied in the morning to hit $20,600 only to see a full retracement of the move and a daily candle close in red.
The mid-week trading day on Wednesday came with another breakout attempt in the upward direction, which again resulted in a failure. Still, bulls were able to ensure a short, 1.3 percent increase to color the market in green.
Bitcoin ended the month of August with a 14 percent price decrease in what was dangerously close to resulting in a bearish engulfing pattern on the monthly chart.
It is quite possible we see a re-test of the horizontal support on both the weekly and daily timeframes – an event that could lead to either a reversal to the upside or a break of the current market structure which will open the door for re-visiting the next major order block around $12,000.
The price of BTC is currently hovering around the $20,000 mark, early on Thursday.
The Ethereum Project token ETH is in a bull flag consolidation on the weekly chart ever since it was rejected at the 21-period EMA on that timeframe above $1,900. The is about to form a higher low, which could push the price higher before the “Merge” (the ETH network transition from Proof of Work consensus mechanism to Proof of Stake).
On Sunday, August 28, the ether closed in red, at $1,425 losing 12 percent on a weekly basis. The short-term diagonal on the daily chart was still acting as a resistance.
On Monday, the ETH/USDT pair rallied all the way up to $1,556 to fully engulf the last two days of intense selloff by adding 9 percent to its market cap.
Bulls, however, were rejected at the mentioned diagonal around $1,600 on Tuesday and the leading altcoin corrected its price down to $1,522 – still above the daily low of $1,480.
On the last day of August, we saw another failed breakout attempt. ETH ended the last 30-day period with a 7 percent loss.
What we are seeing midday on Thursday is a relatively calm session as the price is trading flat.
The US Dollar Index is in a potential Double Top formation, which can put some pressure in the mid-term and allow the crypto market (and all other risk assets) to continue their bear market rallies.