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Weekly Crypto Market Brief

Bitcoin has continued its consolidation pattern over the past week, operating in the $18-20k range. It has so far held support over the $18.5k level, with buyers stepping in and ensuring the cycle bottom has so far remained at $17.5k on June 18, 2022. Yet, traders and investors will be paying particular attention to the upcoming weekly and monthly candle closes, with the $19.5-20k region being of critical interest. Market sentiment remains the predominantly bearish, with extreme fear reflecting the status quo in the cryptocurrency space.

Ethereum (ETH) dropped as expected following the merge on September 15, after registering a lower high on the daily chart, at just under $1800 on September 11, 2022. It has since held support just above the $1265 level, which had served as a resistance for the premier altcoin between mid-June and mid-July, following the most recent cryptocurrency market crash. There will be significant scrutiny over the asset’s next move, as a break of the support level would potentially result in a price drop close to the $1100 level, while a successful hold could well result in a bullish move back to the $1400-1500 price zone.

Meanwhile, Bitcoin Cash (BCH) has remained in a bearish trend since late July 2022, registering successive lower highs and lower lows in the process. It has engaged in constant battles with the 200 MA on the 1h and 4h charts, without establishing any of these levels as decisive support or resistance in the charts. This reflects a dominance of derivative traders in the market, with spot buyers remaining relatively absent so far. On a macro level, the asset is oversold, but investors would be wary of the coin as it has displayed significant historical weakness in terms of price, since it last experienced its current price levels in late 2018 and early 2019.

Litecoin (LTC) has so far held support successfully over the critical $50 level, ever since breaking it as resistance and holding above it as support in mid-July 2022. It has since undergone a consolidation period in the $50-66 price zone. In similar fashion to Bitcoin Cash, it has continuously battled with the 200 MA on the 1h and 4h charts, failing to hold either as support or resistance for extended periods of time. Potential investors would be hoping that the $50 level holds in this period, especially as the current low prices represent historical weakness for the seasoned altcoin.

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