The cryptocurrency market continues to react to the double blow inflicted, first, by Chinese regulators that announced the closure of stock exchanges in China and, second, by JPMorgan Chase (NYSE:JPM) CEO James Dimon’s promise to fire every employee involved in Bitcoin trading.
BTC
Before the latest news, the leading cryptocurrency hit $4,500 level and went below the psychological $4,000 level today. It lost almost 8% during the session and is now at $3,850 support level.
Technically, the picture is as follows:
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The price of Bitcoin is moving flat, having taken a position between $4,000 resistance zone and $3,850 support level.
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The price is likely to bounce off the support level and move upwards until it reaches $4,100 or even $4,440;
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Technical indicators show mixed signals, while traders are waiting for additional prompts from market outcomes;
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Cryptocurrency is traded below the lower boundary of the Ichimoku Cloud (IchimokuKinko Hyo), which points to a downtrend for Bitcoin;
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100 SMA being lower than the longer 200 SMA, the path of least resistance is going down.
Possible Scenarios:
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The most likely scenario in terms of price behaviors for the coming week is the price downtrend influenced by the negative news background and $3,600 support level. A decline in BTC/USD is expected after $3,850 level is reached.
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Stochastic is catching up, considering that bullish moods are about to return temporarily. RSI is also moving northwards, so Bitcoin may well do likewise. A breakthrough in any direction may result in a rally of hope or in sales in a range of approximately US$250.
Decreased geopolitical risks have slowed down the price growth of Bitcoin, because North Korea has not yet taken its next step after being hit with a new round of sanctions.
ETH
Another popular cryptocurrency, Ethereum, is also going down, with its price having decreased to $260 on September 13. Given the $388 value of ETH on September 2, the decrease amounted to over 30%.
The situation is as follows:
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Ethereum is traded at $270 level.
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Cryptocurrency is traded below the lower boundary of the Ichimoku Cloud (Ichimoku Kinko Hyo), which points to a downtrend for Ethereum.
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Fundamentally speaking, the Metropolis structure and transition to PoS should correct the tendency to Ethereum’s rate increase. For the time being, however, we see a serious downfall following that of the market’s leader Bitcoin.
Possible Scenarios:
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The indicator’s signal line test is expected to be about $290, with a likely downfall at $225 level.
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A strong signal has been received earlier for Ethereum сryptocurrency sales after crossing the signal lines at $312 level. Cancelling the Ethereum’s downfall option will become a sample of the upper boundary of the Ichimoku Cloud (Ichimoku Kinko Hyo), with prices above $320 zone being closed, which will point to a shift from the downward trend to the upward one. Beyond $255 level, ETH/USD price downfall is expected to speed up.
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There is almost no risk of a flat. Currently, bearish moods are predominant, but the situation may change radically with the release of the Metropolis upgrade.
LTC
Following its sharp rise to $90 level, the market’s leading hedge Litecoin did not stand up to the negative news and fell down to $60, along with others.
Technical situation:
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Litecoinis traded at $60.
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Cryptocurrency is traded below the lower boundary of the Ichimoku Cloud (Ichimoku Kinko Hyo), which points to a downtrend for Litecoin. The indicator’s signal line test is expected to be about $65, with a likely downfall of LTC/USD under $225.
Likely Scenarios
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A medium signal has been received earlier for Litecoin cryptocurrency sales after crossing the signal lines at $74.
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Cancelling the Litecoin’s downfall option will become a sample of the upper boundary of the Ichimoku Cloud (Ichimoku Kinko Hyo), with prices above $73 zone being closed, which will point to a shift from the downward trend to the upward one. Beyond $59 or $60 level, cryptocurrency downfall is expected to speed up.
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Being a relatively stable crypto asset, Litecoin is likely to be traded in the familiar $60-65 flat after bouncing off $59 level and a likely rise to $73 resistance zone.