Bitcoin, Ethereum (ETH), Major Altcoins – Weekly Market Update September 19, 2022
The cryptocurrency market erased $165 billion from its market cap during the last seven days and now stands at $906 billion. The top 10 coins ended the week in red with ether (ETH) and Bitcoin (BTC) being the worst performers with 25.4 and 14 percent loses respectively. Bitcoin (BTC) is currently trading at $18,714 while ether (ETH) is at 1,314.
Bitcoin closed the trading day on Sunday, September 11 at $21,828 in its fifth day in green after bouncing back up from the support zone right above $19,000. The coin successfully moved above the 21-day Exponential Moving Average (EMA) on the daily timeframe chart to add 9 percent to its valuation for the seven-day period.
The current technical structure on the weekly chart was looking quite similar to a Double Bottom formation with a neckline at around $24,000. A bullish breakout above that level could suggest a mid to long-term bullish reversal.
On Monday, September 12, the BTC/USDT pair continued to climb and eventually reached the $22,420 mark. The 24-hour trading volumes were significantly higher than the average for the last 14 days.
The bad inflation data from the United States, however, once again spoiled the party. The higher-than-expected numbers pushed the risk assets down and the cryptocurrency market followed.
BTC fell down to $20,160 on Tuesday erasing 10 percent of its market cap during the session.
The mid-week trading on Wednesday came with another volatile day for the market participants. The biggest cryptocurrency remained flat even though bears pushed the price as low as $19,640 intraday.
On Thursday, September 15 BTC fell further down to close the daily candle at $19,720. The selling pressure was increasing, but $19,500 was still valid horizontal support from back at the end of August – the beginning of September and was expected to hold this time as well.
The Friday session saw bitcoin temporarily trading near $19,337 before jumping back up in the evening to eventually end flat.
On the first day of the weekend, it climbed back above the psychological level of $20,000 increasing by almost 2 percent for the day.
This was followed by a renewed selloff on Sunday when the BTC/USDT pair finally closed a daily candle at $19,415.
As of the time of writing, the price is hovering even lower – at $18,750.
The ether was in a solid uptrend since the end of August but September 11 marked the local top, which resulted in a reversal to the downside. It jumped by 12 percent in the week of 5-11 September.
On Monday, September 12 it started trading at $1,763 after reaching a high of $1,791 the day before. Bears pushed the price down during the session and the leading altcoin hit $1,717 at the daily candle close.
The Tuesday session was no different and ETH followed bitcoin on its way down as a result of the bad CPI data. The price of the coin decreased by 8.5 percent fully engulfing the last week’s candle. Not only that but we could clearly see a Diamond Top reversal pattern being formed, which is by definition a bearish figure.
On Wednesday, the Ethereum token moved 4 percent up to the 21-day EMA in expectation of the important technical milestone.
The Ethereum community celebrated the long-expected Merge on September 15, which saw the biggest altcoin transition from Proof of Work (PoW) consensus mechanism to Proof of Stake (PoS) in an attempt to improve its overall performance and most importantly – reduce energy consumption. The Merge happened at around 07:30 CET with the price reaction being extremely negative.
The ETH/USDT pair decreased by 10 percent and moved below the 21-day EMA to hit the $1,474 mark. It is worth noting that the mentioned Diamond Top pattern visible on the daily timeframe chart came into play as the price lost the dynamic support.
On Friday, the ether reached the mid-term horizontal support at $1,430 but was unable to break it.
The weekend of September 17-18 started positively for buyers. On Saturday, the altcoin jumped up to $1,470 with many traders believing we could see a run to the high of the range in the coming weeks.
On Sunday, however, they were proved wrong as the free-fall continued and ETH ended the seven-day period at $1,332.
The price is currently trading at $1,137 up from a daily low of $1,283.
- XRP (XRP)
A long time has passed since we last mentioned XRP in our weekly market update, mainly due to the lack of trading activity on its main pairs.
The coin lost nearly 80 percent of its value since peaking above $1.55 in April 2021 then spent more than 3 months trading in a range in the $0.32 – $0.39 area. Last week, however, it finally managed to make a break to the upside by hitting the $0.39 mark on Sunday before completely erasing all of its gains in the evening part of the session.
To fully confirm the reversal, it will be necessary to stabilize above the mentioned range high and a potential climb above $0.42 where we saw the biggest trading activity before the range was formed. It is also where the 21-period EMA currently sits on the 1W chart.
Altcoin of the week
Our Altcoin of the week is Chiliz (CHZ). Branded as the world’s first tokenized sports exchange Chiliz is one of the leading cryptocurrency projects for sports and entertainment.
It provides its blockchain infrastructure support to the Socios.com fan engagement platform – the most well-known football fan token platform.
The CHZ/USDT pair added 11 percent to its market cap during the last seven days making it a total of close to 150 percent since it founds its bottom at the end of June 2022. The coin remains extremely volatile above its 21-period EMA on the bigger, weekly timeframe, but continues its uptrend thanks to the series of new fan token announcements, exchange listings, and most importantly – the innovative Chiliz Chain 2.0 that was first mentioned in late August.
As of the time of writing, CHZ is trading close to the previously stable support/resistance area of $0.25. A pullback down to $0.18 cannot be excluded for a healthy consolidation.
Chiliz is ranked at #47 on CoinGecko with a total market cap of approximately $1.24 billion.