Bitcoin and Ether Market Update August 19, 2021
The total crypto market cap lost $130 billion from its value for the period since Monday and now stands at $1.9 trillion. The top ten coins are mostly in red for the last 24 hours with just XRP (XRP) and Cardano (ADA) posting some gains with 1.25 and 4.5 percent of increase for the period respectively. At the time of writing bitcoin (BTC) is trading at $44,405. Ether (ETH) is at $2,982.
Bitcoin closed the trading day on Sunday, August 15 at $47,039 after hitting a daily low of $45,483 in the first part of the session. Still, the coin was trading below its recent high of $48,201 and ended the seven-day period with a 7.2 percent increase.
Looking at the daily timeframe, the BTC/USDT pair was rejected at the February and April lows in the $48k zone where we also have the Fibonacci 50% level. What is more, the RSI indicator was already losing momentum, creating a bearish divergence combined with a decreasing money flow index.
On Monday, bears continued to dictate the market direction. The biggest cryptocurrency formed a third straight red candle and fell to $45,868, near the 200-day EMA.
Things did not change much on Tuesday, August 17 and even though buyers managed to push the price up to $47,287 during intraday trading, they could not find stability in that area and BTC dropped to $44,629.
The mid-week session on Wednesday was highly volatile. The coin was trading in the $46,000 – $44,200 range before closing flat at the diagonal uptrend line.
What we are seeing midday on Thursday is a price action below the above-mentioned tag and increased selling pressure.
The Ethereum Project token ETH hit a 4-month high on August 14 by reaching $3,335, but could not extend its rally further. It closed in green on Sunday and also registered a 9.8 increase on a weekly basis, but just like bitcoin, ether was seeing an exhausting uptrend, visible on the momentum indicators like RSI and MACD. It was rejected right below the Fibonacci 61.80% levels for four consecutive days.
On Monday, August 16, the ETH/USDT pair dropped to $3,143, losing 4.4 percent for the day. And while bulls were able to temporarily reverse the downward movement by pushing the price up to $3,291 on Tuesday morning, the bounce was quickly absorbed and fully retraced later in the session. The coin closed lower, at $3,012.
It remained flat on Wednesday, moving up and down the $3,120 – $2,950 zone as bears were slowly taking control over the market.
The price of ETH is currently trading below the important $3,000 line, which acted as a support in the last few days. The $2,900 – $2,925 area above the 21-EMA is the next logical level to watch.