On Wednesday, 9th September, BTC/USD was moderately trading up, having finished that day at $10,231 slightly above the $10,196 daily level, which means that Bitcoin quite firmly resists further decline at this level. ETH/USD was moderately trending up as well, having finished the day at $351.21 or 4.13% above Tuesday’s session close. With Bitcoin presently consolidating at around $10,200, the pressure on Ethereum has been reduced.
Ethereum’ downtrend is reversed
At the intraday 1-hour chart we can see that there occurred an upward intersection of the 50-period SMA by the 20-period SMA at 18:00 UTC, with the cross rate continuing its upward move. This along with the upside breaking out of the triangle pattern formed near the 0.618 Fibonacci retracement level at $343.3 lets us assume that a continuation of this ascension can follow.
This intraday ascending pattern clearly indicates a way out of the steep decline that began with the major sell-off from Bitcoin miners at the start of September. Yet there are some hurdles to break though for Ethereum on its way up. We can see a daily level at $378, which is acting as resistance now, and the 0.786 Fibonacci retracement level further at $407.However, it is yet early to talk about firm upside tendencies for Ethereum as a clearer indication of the pair’s consolidation at above $350 is required to let the market have more trust in Ethereum’s chances of edging higher.
Also, on Wednesday through to the early hours of Thursday the DeFi tokens, many of which are built on the Ethereum blockchain, have jumped above 20% after a steep 50% decline in the previous seven days, with the whole DeFi market showing a positive 19% change. This rebound of DeFi also fuels Ethereum for further gains.
Bitcoin resists further decline
On Wednesday, the trade of Bitcoin was marked with relatively low volumes indicating that many high-profile traders are presently saving their liquidity ready to put it into the market when a decisive move from the flagship cryptocurrency follows.
The 1-hour intraday BTC/USD chart indicates that the traders are currently moving Bitcoin in the region of $10,000 and $10,400 without any sharp moves.
The upward intersection of the 50-period SMA on the hourly chart by the 20-period one, with the 20-period SMA visibly providing support for Bitcoin is a sizeable sign of a possible breakthrough above the upper edge of the rectangle. The consolidation above the $10,196 in its turn also keeps the bulls’ hopes up, showing that there is no much selling volume in the market right now.
Forecast for the rest of the week, 10 – 13 September
There is a clearer indication of a beginning uptrend for Ethereum than Bitcoin in the early hours of Thursday by UTC. The DeFi market dynamics will be affecting Ethereum trade in the near-to-medium term.
Bitcoin has been trading within the $400 corridor for the last five days, and it is likely to take another fluctuation in this range, slipping to the $10,000 handle with a subsequent rebound to $10,400. If that scenario works, a breakthrough above $10,400 is likely to follow because the sideways corridor that has been in place since 5th September indicates a high probability of the downtrend reversal.
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Executive Director at CEX.IO