Over the weekend, the crypto markets were anything but quiet. Bitcoin broke critical support levels, and rumors and controversies surrounding popular crypto projects like Avalanche and Ripple were circulating within the crypto community. In this article, we will dive into these developments and explore how Avalanche and Ripple may have worked together on a smear campaign against their competitors. We will also analyze Bitcoin's price action from the weekend, discuss where this sell-off may be leading, and whether it presents a buying opportunity for investors. If you're interested in staying up-to-date with the latest crypto market updates, be sure to like this article and subscribe to our website. Let's dive into the details of what's been happening in the crypto world.
Bitcoin's Weekend Price Action:
A Drastic Drop and Recovery The weekend saw a dramatic drop in Bitcoin's price, with the cryptocurrency breaking critical support levels. After holding on to the $20,000 support level for most of the weekend, Bitcoin dropped to a new low of $19,500 last night, triggered by hawkish comments from Jerome Powell and the U.S. Dollar Index (DXY) reaching decade highs. However, Bitcoin has since recovered slightly and is now trading back above the $20,000 level as of this morning.
On the four-hour chart, Bitcoin's Relative Strength Index (RSI) is neutral at 45, and the cryptocurrency is trading below all relevant Exponential Moving Averages (EMAs), including the 50, 100, and 200 EMAs. There are several resistance levels that traders are watching closely, including $20,800, which is the previous support level that turned into resistance, $21,000, which is a psychological resistance level, and $21,600, which is the previous resistance level. Unfortunately, the recent crash has broken Bitcoin's two-month trend of making higher lows, and the cryptocurrency is now trading at lower levels. A reversal in this trend will be needed to see more continued upside.
Bearish Predictions for September:
QShould Investors Be Worried? While September has historically been known as the worst month for crypto markets, with various theories about planetary alignments and lunar cycles affecting prices, no one truly knows what's going on within the crypto markets. Even with all the predictions and analyses from experts and analysts, the future of crypto remains uncertain. It's crucial to remember that in the past, the most enormous bull markets have often formed when bears were getting louder and predicting further downside.
On the weekly chart, Bitcoin closed below its critical price level at the 200 Moving Average, which is discouraging for investors who believed that the cryptocurrency's bull market reversal had started. However, the RSI is showing oversold levels at 33, which could be a good signal for investors to start dollar-cost averaging back into the markets. For those who bought in at the weekend low of $19,600, they would already be seeing a positive return on their investment.
Global Crypto Market Cap:
Volatility and Opportunities The global crypto market cap has dipped below the $1 trillion level, a mark that has been teetering on in recent times. While it's positive to see a market cap of over a trillion dollars, the ongoing bear market is likely to bring more volatility to the crypto markets. Ethereum, the second-largest cryptocurrency, has also seen a significant drop in price, with it dipping below $1,500 at one point. However, with the upcoming merge upgrade and the potential for higher returns on investment, buying Ethereum at around $1,500 could be a favorable opportunity for investors.
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