Alejandro Zala, Country Manager of Bitpanda Spain, shared with Cointelegraph in Spanish, its first weekly analysis of the cryptocurrency market this September, first highlighting that in the last seven days of August, the total capitalization fell below the trillion euro mark and most major coins closed. the week in the red.
According to what was highlighted by Zala, the registered fall has been about 50,000 million euros in the last seven days, almost 60% since the beginning of the year. Fact that it has generated, in the case of Bitcoin that will close with a monthly candle on a bearish note with the price falling almost 14% in the last 31 days.
“On the weekly chart, Bitcoin also closed lower, which means there could be more downward pressure, especially given the lack of demand in the market and global macro headwinds”mentioned the Country Manager of Bitpanda Spain.
Likewise, Zala also pointed out on the weekly chart, that a substantial rejection of the resistance level of 24,000 euros was observed, causing the price to push towards the 20,000 euro zone. “Breaking out of its 200-week moving average, BTC seems to be struggling to hold support levels on the lower time frames. For now BTC moves within the consolidation pattern in the range of Euros 19,150 and 24,000”said.
Regarding the daily chart, Zala mentioned that the price of Bitcoin continues its consolidation below the zone of 20,000 euros and has a hard time gaining pace above the resistance. “Marking a move to the downside, an initial support lies near the €19,150 level, while the main hurdle to the upside is near the €20,600 level”he pointed.
“The price is moving below the simple moving average of 100 hours. Meanwhile, the important 200-day trend line continues to drop steadily, representing a downtrend”he added.
The Fear and Greed Index indicates that extreme fear is back
In this sense, Zala explained that the recent drop in market prices in general has also dragged down the feeling of the Fear and Greed Index, as it has returned to levels of extreme fear. “At 20 points on the scale, the bears seem convinced that the market will continue to go lower. The index is down 5 points from last week and 27 points from its peak in August.Zala commented.
The ETH/BTC pair bounced off the support level
On Ethereum, Zala indicated that its price has turned lower after reaching the level of 2,000 euros and has returned to a trend line support, which remains strong at the moment. According to Zala, although the price is grazing the €1,400 support zone, a break below would push the price towards the €1,300 mark. While a pullback from the higher lower trendline could push it higher around €1,785.
“Price bounced above the 100-day moving average, suggesting bulls are still in control”Zala pointed out.
On the other hand, on the shorter duration chart, ETH is forming a smaller wedge pattern, thus causing, as explained by Zala, that the converging trend lines are narrowing, suggesting that a breakout could occur in the next few days. weeks.
As for the ETH/BTC pair, it rose above the 0.78 resistance after testing the 0.072 support level, according to Zala, the pair is gaining momentum ahead of the ETH meltdown.
“The Ethereum foundation announced that the merger will happen a little earlier than planned. The date is estimated to be September 13, but this still depends on ongoing block production and hashrate.”he added.
ADA Price Consolidates Ahead of Vasil Hard Fork
Regarding the price of ADA, Zala stated that its price is consolidating around the level of 0.45 euros, just before the long-awaited update of Vasil’s Hard Fork, the new update that according to the IOHK team, could be released in the next few weeks, as long as the network does not encounter any problems.
“The Hard Fork will introduce critical advances in the current Cardano ecosystem. It will improve the operation of the network in general, in addition to promoting the development of smart contracts and DApps”Zala explained.
The BEST/EUR pair is going down with the rest of the cryptocurrency market
Zala also spoke about Bitpanda’s BEST token, as its price – Zala described – is trading below the 100-day moving average and below the resistance of the dynamic trend line, a drawing that indicates a bearish trend. “A break above could activate the change in trend, while a first strong support is found at 0.325 euros”he explained.
Finally, he also mentioned the BEST/BTC chart, in his opinion the pair is forming a large wedge pattern, however the converging trend lines would be narrowing, suggesting that a breakout could occur in the coming weeks. “A breakout of the lower trendline will mark the start of a downtrend, while a breakout of the upper trendline will signal the start of a new uptrend.”Zala concluded.
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