Most cryptocurrencies started the week on a bad note as they registered significant losses on Monday. They are yet to recover from the downtrend as the bearish sentiment is gaining momentum.
Nonetheless, the crypto market had significant increases last week as several cryptocurrencies cruised past their fourteen-day high. The global cryptocurrency market peaked above $2.22 trillion the uptrend continued.
News of the Federal Reserve’s plans to cut interest rates in September raised many bullish speculations, which translated to an increase in the price of major assets. However, the hype is slowly dying, resulting in the market’s return to the previous pattern.
Current trading actions suggest that most assets dipped below what was considered the fourteen-day high a few days ago. Will the trend continue?
Top Four Cryptocurrencies
1. Bitcoin (BTC)
The apex coin started Friday at $60,383 and quickly surged, breaking through its 14-day high of $62,000. It continued its upward momentum, surpassing $64,000 and reaching a peak of $64,988 as heavy selling pressure mounted close to $65,000. The session closed with gains exceeding 6%.
However, further attempts to push higher were unsuccessful, as the cryptocurrency formed dojis in the last two intraday sessions of the previous week. Nonetheless, with fundamentals wearing out, BTC struggled to hold momentum and is on a downtrend.
The largest cryptocurrency started Monday with notable decreases. Kicking off the day at $64,248, small attempts at uptrends failed as the coin hovered above $63k for a while before flipping it. It resulted in a close at $62,852 and a more than 2% decline.
The downtrend is ongoing, and BTC has yet to recover. It lost the $62k support and is now exchanging at $61,900. Down by almost 2%, the asset is gearing up for more decreases this week.
Currently trading above its 50-day EMA, the bulls are hopeful that the coin will resume its uptrend. However, the 12-day EMA is printing sell signals. The metric is heading downhill as the cryptocurrency loses momentum.
RSI points to a further decline as the sellers are dominant. The Fibonacci retracement level points to 38% as the next critical support. It means that BTC will drop below and retest $60,500.
2. Ethereum (ETH)
Ethereum saw gains of over 5% last week, reclaiming several key levels. According to the one-day chart, most of these gains occurred on Friday when the coin opened at $2,623. It surged, surpassing its 14-day high before pulling back at $2,800.
After closing the day with a more than 5% increase, it briefly rose above the resistance level the following day but ended with a doji as the bulls fail to sustain the surge. Since then, ETH has been on a downward trend, with the decline intensifying by the hour.
It lost a critical support during the previous intraday session. The coin started trading at $2,700 but closed below it. The dip continues into the current day as ETH is down by over 4%. Currently trading at $2,500, fears of a slip to $2,400 heightens.
Ether is trading at its fourteen-day low. It has held prices above $2,500 since August 9. Although there is notable demand concentration around the mark, the altcoin is still at risk of dropping below as the bearish dominance bites harder.
The moving average convergence divergence is printing sell signal as the 12-day EMA arches downward. With a negative convergence imminent, ETH will dip further, breaking $2,500.
3. Toncoin (TON)
News of Telegram founder Pavel Durov’s arrest by French special services at a French airport. He faces accusations of complicity in terrorism, drug trafficking, fraud, and money laundering.
Toncoin was on a slightly bullish trend, nearing $7 before halting at $6.88. A minor downtrend followed, with the 2-hour chart showing that prices lingered near the highs for some time after losing momentum. However, the negative fundamental broke the last lingering support, resulting in a more than 15% decline.
TON has not yet recovered from this downturn and has continued to lose significant value during the last two days. For example, after opening trading at $6, it retraced to a low of $5.25, rebounded slightly, and closed with a loss of nearly 3% on Sunday.
It had its biggest decline during the previous intraday session as it dipped by 11%, bouncing off $5. Currently trading at $5.35, the asset has since started recovering and is showing signs of continuing the uptrend.
The latest surge is an attempt by the bulls to defend $5. Nonetheless, the asset surged to a high of $5.66 but retraced to its current price, suggesting that the bulls were unable to sustain the surge. Nonetheless, it also indicates the buyers’ intent to resume the uptrend if the crypto market resumes its uptrend.
Nonetheless, with the market still experiencing a significant downtrend, the cryptocurrency may resume its downward movement. TON may retest $5 this week. However, if the uptrend resumes, it will look to climb above $6.
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