The market continued its consolidation today. A couple of notable performances were a result of Bitcoin not moving much and seemingly gearing up for its next move. This can be a good thing, as the longer the consolidation is, the stronger the breakout period usually is. If this breakout turns out to be downwards that could be a problem, though. The general market sentiment is as follows:
Bitcoin (BTC)
Turningmecard thinks a mid-term bull-run could be on the cards:
“So, we have BTC consolidating around 7.3k area, boring again! So many of you who went long, congratulations! We could have another spurt up to 75, 76, but 7.3k is also good spot to sell your longs because we can always drop heavily at any time.
So, i do think we are going up in the mid-long term, we have so many whales buying huge amount of BTCs below level, which we will not drop so much now. However, we would might not get the chance to go to the moon, like over 8k this month, maybe the top is 7.7~7.8 at the most.”
Check out his complete analysis for some candle stick TA, analysis of the current indicators, a comparison with the previous bear market and his trading plans for the upcoming period.
Trader BradenNottingham thinks it’s time to short:
“First off, I just wanna say that CNBC said long BTC here at 7420. If you are an experienced trader, then you should know what that means… SHORT! DO the opposite of what CNBC says! (They are whales getting the masses to long while they are stacking shorts and when the masses get liquidated, we fall faster and harder.) Plus everyone is starting to long, meaning I wanna short since 90% of traders lose money, why would you follow the herd??”
Concluding the psychological arguments for a short, he moves onto the technicals:
“The technical side of it is that we have a huge beard ( bearish divergence) on the 4h that has been growing bigger and bigger, meaning that when the price finally blows, the impact should be on a bigger scale, meaning that the longer we are in the retrace of an uptrend, the harder we will dump. We are also chilling in the .618 retrace zone from the 8500 to 5700 move, which is a fractal since we have rejected from .618 retrace many times before on big timeframes. My favorite fractal , the curve fractal , shows that we are at the top of our range for now, and should start declining following the curve. If we break into the curve, then it becomes resistance.”
His analysis contains more information about the upcoming move and his targets for the upcoming period so check that out here as well.
Ethereum (ETH)
Trader easyMarkets notices that Ethereum supports are about to be tested:
“ETHUSD is approaching our support at 284 (horizontal overlap support, 61.8% Fibonacci extension, short term ascending support line) and a breakout might occur below this level pushing price down to our major support at 277 (horizontal swing low support, 100%, 61.8% Fibonacci extension, 61.8% Fibonacci extension). RSI (89) is seeing a bearish exit and we might see a corresponding drop in price.”
Trader peakindicator thinks ETH is in a zone where starting to accumulate wouldn’t be the worst idea:
“The chart honestly looks amazing so unless you truly think Ethereum is about to totally die (it’s not). I got in at $283, noticing some serious short term bullish indicators on the RSI. As you see we are being confined to my “red zone”, price staying steady but RSI experiencing some pretty heavy swings. Ethereum is still #2 under Bitcoin for overall market cap and it’s oversold with extreme upward potential. So many ways to play this, but I think the best bet is to HODL.”
For more details on why he thinks ETH might be turning green very soon (and some hidden bearish divergences that could spoil it all), check out his analysis here. Overall, the market seems bullish on Ethereum right now, but maybe a bit too bullish, as @EthereumAddict points out:
https://twitter.com/EthereumAddict/status/1037068804696809472
Ripple (XRP)
We looked at what trader easyMarkets had to say about this cryptocurrency as well:
“XRPUSD is approaching our first support at 0.3131 (horizontal swing low support, 100% Fibonacci extension, 50% Fibonacci retracement) and a strong bounce might occur above this level pushing price up to our major resistance at 0.3495 (horizontal swing high resistance, 61.8% Fibonacci retracement, 100% Fibonacci extension). Stochastic (89, 5, 3) is also approaching support and a bounce off this level might see a corresponding rise in price.”
Other thoughts
Generally speaking, there wasn’t much movement on the market during the last 24 hours and the biggest highlight was the fantastic 250% Bitcoin breakout. Sadly this wasn’t the real Bitcoin but rather Bitcoin Diamond (BCD), which basically exploded in a move that was backed by some pretty strong volume of $49 million. Dropil (DROP) at 17% and Stratis (STRAT) at 11% were only other currencies that went into double digit gains yesterday. The other side of the spectrum was relatively peaceful as well. Yesterday’s breakout performer BitcoinDark experienced a drop of 18% as new details about its 300% move started to arise. The community remembered that BTCD is actually a project that has long been abandoned and blamed Poloniex for fake-pumping the coin:
So a massive pump in $BTCD is going on but the thing is they swapped to $KMD and bitcoindark is dead no working wallet or blockchain but still listed @Poloniex Thy must be dumping their bags and somebody is going to get burned!
What i ask is where is the $SEC? pic.twitter.com/Z94ibxqXNr— Thecoin (@blbtheman) September 4, 2018
In other notable “losers”, Holo started to retrace a bit with a 10% drop. Overall, the consolidation continues as we wait for Bitcoin to make its next move.
