The global cryptocurrency market capitalization is estimated at $1.8 trillion as of the time writing. The market is down by 10% since the start of the week. We see a drop in the prices of various cryptos. The king coin is down by 11% as the largest alt is also down by 15% over the last seven days. We saw the resurface of old news that caused another FUD in the market.
News of the Chinese government, banning bitcoin is not a new event. China has stated its stand against digital gold more than once and a little too often. In the latest China ban on Bitcoin, ten agencies, including the central bank as well as banking, securities and foreign exchange regulators, vowed to work together to root out “illegal” cryptocurrency activity. The reinstatement of this commitment caused BTC to drop as low as $40,600 Other cryptocurrencies were affected as well. Let’s some coins in the top 10 performed this week.
The King coin is about ending one of its dullest weeks as it recorded a high of $47,334 and a low of $39,573 since the week’s beginning. Following the recent FUD, we notice BTC inability to surge above $45,000 since it flipped the mark. Bitcoin also fell below $40k on the 21st of September after the initial price slip in the early parts of the trading session that the concept of making money in one’s sleep was flawed. Long positions worth more than $1 billion got liquidated during that dive.
The recent analysis warned that if BTC fails to continue its uptrend and remain above $42k, it will fall back to the $42,500 and $37,000 channels. Now, the largest coin by market cap is trading within the $42,500 and $51,000 channels as created using Fibonacci retracement.
At the current price of bitcoin, the $42,000 support is a fragile one. Crypto firstborn has had a lot of interactions with the $42k support lately and will start major price recovery from this mark. $40k is one support that is considered the border between $30k and $50k. We have seen the king coin hold this level but failed once this week.
A lot of resistance lay ahead if BTC will return to $48,000. One such is the $45k resistance. This resistance is one that BTC has flipped very often and will not be a problem it may break on the first attempt. The $48,000 mark is the toughest the king coin will contend with to ensure an attempt on $50,000.
The largest alt by market cap may end the week below $3,000. If that happens, this will be the first time in seven weeks ETH is closing the week below $3,000. The coin recorded a high of $3,370 and a low of $2,650 since the start of the week. We notice that Ether fell below $2,700 about the same bitcoin hit its lowest price this week.
The instability in price has caused the $3,000 mark to be very weak support as it broke more than three times in the last six days. The $2,900 support is also unreliable as has flipped almost every time the preceding does. The strongest support ether has above $2,000 is $2,500. A return to $3,500 will spark readiness for $4,000.
Cardano dipped below $2 for the first time in the last five weeks. ADA saw a strong rebound of $1.94. Although the third largest coin stayed negative for most of the last 24 hours. Nonetheless, a little positivity improved the prices both daily and weekly. Traders actions in the last four days have been a little flat as RSI suggest equal pressure from both sides of the market.
Following the rebound at $1.94, Cardano has not tested the $2 support neither has it progressed as high as $2.6. The expectations of the coin hitting $3 are still on and the $2.6 resistance is one strong obstacle to contend with as the coin slips out of bearish dominance.
A much earlier article warned that an extension of the price dip will result in the Binance coin dropping as low as $350. The $350 support is not a very strong one but the bulls must hold this level or the coin may decrease more. We saw the prediction came true this week as the coin saw a low of $331.
The fifth coin by market cap is currently bearish according to the Pivot Point Standard as it trading below its pivot point. BNB is trading above its first pivot support at $341 after breaking it thrice this week. We may see the coin surge above $400 in the coming days as market conditions improve