Tuesday, September 7 liquidation sows doubt
It should be noted that Bitcoin is the tree that hides the forest, as for the total market capitalization of cryptocurrencies returned to its all-time high in early September, 6 weeks of rise on altcoins that largely contributed and whose bullish slope was becoming excessive again.
As soon as the market got here in contact with the bottom of the massive selling liquidity zone from early May, the $52,800/$58,000 interval, last Tuesday’s brutal sell-off session took place.
The market did not then follow up with any more down sessions, which is a difference from last spring at this point. Isolated liquidation or resumption of the fall is the new technical debate.
Bitcoin would have to remain in a range above the $44,000 support to consider a simply isolated shock after the $52,800 test. In passing, I invite you to watch my video below where I explained the strength of the $52,800 resistance:
Bitcoin and the Ultimate Technical Threshold
As I write this, the flash crash of Tuesday, September 7 has not had a bearish retort, but the technical setup remains fragile.
The hypothesis of a chartist trading range above the $44,000 support would be the perfect scenario for the bullish camp, with an ultimate technical guarantee at $40,000.
To put it bluntly, if the market breaches both of these supports in another massive sell-off, then the die will be cast, Bitcoin could then fall to $30,000. This is the risk at the moment and this week’s weekly close will already tell the tale.
Charts of the BTC/EUR pair (weekly data on the left and daily on the right) – Source: TradingView
Get a crypto news recap every Sunday And that’s it.
What you need to know about affiliate links. This page presents assets, products or services related to investments. Some of the links in this article are affiliate links. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investments in crypto-currencies are risky. Cryptoast is not responsible for the quality of the products or services presenteds on this page and could not be held responsible, directly or indirectly, by any damage or loss caused as a result of using any goods or services highlighted in this article. Crypto-asset related investments are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
About the author: Vincent Ganne
Vincent Ganne is a manager at TradingView, a market strategist, a technical analyst, a trainer on the stock market and a speaker on BFM Business. With a long experience in the field of analysis, he offers a global approach to financial markets. From a macroeconomic point of view, as well as from a microeconomic point of view. Vincent Ganne also uses many aspects of graphical analysis in order to forecast medium and long term trends in financial assets.
All articles by Vincent Ganne.