Bitcoin (BTC)
This Thursday, September 2 began with a sudden increase in the price of Bitcoin as a result of which the asset again began to try to cross the resistance level already become emblematic for the cryptocurrency market.
This time the world’s first cryptocurrency inspires much more confidence than in its last attempts to cross the borders of the triangle. It is possible that today Bitcoin will finally break through this level and will then try to consolidate above the $ 50,000 level. Altcoins, on the other hand, have mostly responded positively to this bullish wave. At the time of writing, Bitcoin is trading at around $ 49,700.
It is likely that traders who preferred to stay away until now have entered the market in the wake of the recent rise in the first cryptocurrency. Crossing the $ 50,000 level can cause a new wave of purchases and, on top of that, a series of liquidations of short positions, which could serve as fuel for the formation of a long-awaited new local high.
As we mentioned in the last market review, the Bitcoin trend remains bullish from a global perspective. The first cryptocurrency is regaining its strength in order to be able to embark on a significant rise that will allow it to reach a new absolute high. The only question to be asked is the methods by which the asset would achieve this result. Namely, will there be a correction before the bullish wave?
Apparently Bitcoin does not want to go down to its support level within the triangle and therefore does not want to play with traders ‘ nerves. This could probably be explained by the fact that traders waiting for the price of the first cryptocurrency to drop simply became impatient and decided to invest in the asset at the current price so as not to miss the opportunity.
It would also be appropriate to pay attention to the fact that Bitcoin’s movements on the daily timeframe are typical of the chartist figure called the “bullish pennant”. This formation results in fluctuations in the asset within a descending and narrowing trading channel, the output of which is carried out through a pump. The more global study of the chart shows that Bitcoin is currently accumulating forces in order to get out of this figure and thus climb towards indicators close to 90 000 – 100 000 dollars.
The future positive dynamics are obvious. However, it is still too early to celebrate the victory. In the past, Bitcoin has already tried to break through this resistance level, but all these attempts ended with a drop to the support level and a zero start. If you are trading Bitcoin and especially if in doing so you are using leverage, wait for the asset price to consolidate above the $ 51,000 level before opening a long position. This will avoid the risk of your position being liquidated in the event that a new fall begins.
After confirmation of Bitcoin’s exit from the descending trading channel (shown in purple on the chart above), the next local resistance level will be $ 60,000, which corresponds to the upper limit of the ascending channel (shown graphically in blue).
Ultimately, traders will always have the final say. The sudden rise of the world’s leading cryptocurrency once again attracted the interest of a multitude of speculative traders and long-term investors who will bring new volumes to the market. It must be clarified, however, that they may very well get trapped if Bitcoin loses the initiative again and returns to its original levels.
Ethereum (ETH)
Ethereum once again proved independent of Bitcoin and continued its ascent. The asset not only came out of the consolidation zone, but also showed determination to reach levels close to $ 4,000. At this rate the world’s second largest cryptocurrency in terms of capitalization could reach $ 10,000, or even surpass the first cryptocurrency in CoinMarketCap’s list of crypto-assets by capitalization.
Ethereum started this Thursday with a pullback, but altcoin is already trying to compensate for this decline. At present, the price of the asset exceeds $ 3,900, which is a good opportunity to reach and even exceed the current absolute peak.
There is no longer any point in studying the chartist triangle of Ethereum. The token has consolidated within the bullish trading channel (shown in red on the chart above) and will now continue its ascent to new highs. Problems can only occur between $ 4,000 and $ 4,200 because this area is roughly the resistance level of the new trading channel.
Ethereum is an asset that should be present in the portfolio any investor interested in making profit in the long term. Cryptocurrency has not only significantly increased in value, but its creators have also announced that their goal is to follow the path of Bitcoin. It is likely that it will be investments in this particular asset that will contribute to the emergence of a new wave of crypto-millionaires in the digital currency market.
Fear and greed index
The index of fear and greed moves to the zone of greed. Traders had the feeling that Bitcoin will not fall below $ 46,000, but very soon the resistance level will be crossed and the asset will move to new highs.
This impression can of course be misleading. However, the current state of affairs does indeed give hope for the best. If there are no large sales and the mood of traders remains at least moderately positive, then a new growth cycle for Bitcoin and the rest of the market will have to be expected.
Top 10 altcoins
The charts of the ten most popular altcoins according to CoinMarketCap are almost all green, their growth being driven by the positive dynamics of Bitcoin.
Binance Coin (BNB) is trying to return to the $ 500 level. Changpeng Zhao, the creator of the platform, is looking forward to this event, which is clearly visible in the way he talks about Binance Coin on Twitter. The billionaire also does not forget to retweet the positive comments of traders who bought his token.
Solana (SOL) is also trying to regain its positions. After the recent fall, many traders have suggested that the bull run of the most discussed token in the community is already over. Solana, however, again showed signs of life.
Cardano (ADA) was finally able to break through the level of 3 dollars. It is very nice to observe the rise of this asset which, to be honest, has been looking like a stablecoin lately.
Fantom (FTM)
Yesterday’s underdog suddenly turned out to be the best performing asset of this new day. Fantom (FTM) has today brought more than 20% profit to its holders. This figure exceeds 70% when considering weekly growth.
As if offended by yesterday’s remarks, Fantom ends the day with a new absolute high. The altcoin, however, could not hold its positions, although in reality no one expected it. The token continues to move within an upward trading channel and may be able to set another record if the Bitcoin price allows it.
Elrond (EGLD)
The worst performing asset among the 100 most traded cryptocurrencies today is Elrond eGold (EGLD). This token trades in the red zone, while the other altcoins on CoinMarketCap’s list keep growing. Elrond eGold drops only one percent, but that’s enough to make this asset the loser of the day.
If we study the token as a whole, Elrond eGold experienced a significant increase followed by a natural correction. However, the latter could not bring this asset below its support level. Most likely, at the end of the day Elrond will delight its holders with a new absolute peak.
In conclusion, this Thursday seems to be rather positive. It is not yet known whether Bitcoin will break through the resistance level or return to $ 46,000, but if the development of events goes according to the best-case scenario, this day will bring a lot of profit to traders and investors.
Do not forget about risk management and do not neglect stop-losses. Especially in situations like now when anything can happen in the short term.
