Weekly Recap: Bitcoin and Ethereum Go Into the RedThe beginning of the week was quite rough for the flagship cryptocurrency. Prices dropped by more than 7% during the first half of Monday’s trading session, September 21st.
Bitcoin Closes the Week at a Loss of 2.13%
Bitcoin opened this day at a high of $10,965.70 and dropped all the way down to $10,180 by 16:00 UTC.
Such price level represented a significant area of support that contained falling prices at bay. What followed was a 3.42% upswing that saw BTC rise to $10,533.33 roughly four hours later. From that point on, this price point served as resistance, while the $10,370.83 level acted as strong support.
Bitcoin spent the next 40 hours trading within this price range without providing a clear path for where it was headed next. But on September 23rd, at 16:00 UTC, the $10,370.83 support level could not hold any longer, and BTC sliced through it. Following the break of such a critical area of interest, the pioneer cryptocurrency took a 2.27% nosedive to make a weekly low of $10,135.22.
While BTC was trading at a discount, buyers began to step in. Multiple cryptocurrency exchanges registered a spike in demand that was significant enough to push prices up by more than 6.50%. As a result, Bitcoin was able to recover some of the losses incurred during the first three days of the week.
The bellwether cryptocurrency made a high of $10,795.87 on September 24th, at 20:00 UTC, following the sudden increase in buy orders. But as the week was coming to an end, some investors appear to have exited their long positions causing BTC to retrace by 0.77%. Bitcoin closed Friday, September 25th, at $10,712.53, providing investors a weekly negative return of 2.13%.
Ethereum Investors Go Into the Red With More than 6% in Losses
Like Bitcoin, the smart contracts giant also had a tough week. It kicked off Monday, September 21st, hovering at a high of $374.90, but things quickly turned around. Ethereum took an 11.71% nosedive during the first half of Monday’s trading session to hit a low of $331.
Although this price level served as stiff support, ETH continued making a series of lower lows and lower highs throughout the following days. By Wednesday, September 23rd, at 20:00 UTC, Ether had dropped another 5.44% to make a weekly low of $313. Such support level was met with a massive number of buy orders that allowed prices to rebound towards the end of the week.
Indeed, the second-largest cryptocurrency by market capitalization entered an impressive bull rally after the significant losses incurred during the first three days of the week. Ethereum saw its price surge by nearly 14.50% to make a high of $358.12 on Friday, September 25th, around 20:00 UTC. Based on the 4-hour chart, the 50 simple moving average seems to have acted as strong resistance.
The rejection from this barrier was seen during the last few hours of Friday’s trading session. Ether dropped roughly 2% to close the week at $350.99. Due to the sell-off seen between September 21st and September 23rd, ETH investors incurred a weekly loss of 6.38%.
Uncertainty Reigns the Crypto Market
When looking at the daily charts of Bitcoin and Ethereum, it seems like these cryptocurrencies are stuck between two critical supply barriers. The 50-day simple moving average appears to be acting as resistance while the 100-day simple moving average serves as support. The inability to determine in which direction the trend will result makes the trading range between these support and resistance levels a reasonable no-trade zone.
Bitcoin would have to close above $11,150 or below $10,475 to provide a clear path for where it is headed next. Meanwhile, Ethereum must exit the $387-$330 trading pocket to signal whether or not the uptrend will resume. Until this happens, it is imperative to wait on the sidelines to avoid getting caught on the wrong side of the trend.
Konstantin Anissimov, Executive Director at CEX.IO