Bitcoin and Ether Market Update September 9, 2021
Total crypto market cap erased $240 billion from its value for the period since Monday and now stands at $2.12 trillion. The top ten coins are mostly in green for the last 24 hours with Solana (SOL) and Cardano (ADA) adding 27.2 and 9.8 percent to their values respectively. At the time of writing bitcoin (BTC) is trading at $46,277. Ether (ETH) is at $3,484.
Bitcoin closed the trading day on Sunday, September 5 at $51,804 or 3.7 percent higher compared to the last session. The coin was 6.1 up on a weekly basis and successfully confirmed the break above the $49,500 range high.
On Monday, the biggest cryptocurrency continued to move in the upward direction and hit $52,790 for the first time since May 12, 2021. Some analysts, on the other hand, started to notice an unhealthy increase in the funding rates across the altcoin market plus an extremely high open interest given the recent overextended rally. This, combined with the fact the market needed a pullback in order to strengthen the bullish structure, resulted in a heavy crash the very next day.
The entire cryptocurrency market turned red on Tuesday, September 7 with almost all coins in the Top 100 list registering double-digit losses. Bitcoin lost 11 percent and closed at $46,800, but the most important part is the fact it was trading below $43,000 at some point during intraday erasing $10,000 of its market value.
The mid-week session on Wednesday was no different and the leading digital asset dropped below the horizontal weekly support at $46,400 and once again tested the already established demand zone right above $44,000. It closed the day at the 200-day EMA on $46,000.
What we are seeing midday on Thursday is BTC trading higher, hovering in the area right above the mentioned moving average. A weekly close above $46,400 would be recommended to keep the bullish structure intact.
The Ethereum Project token ETH managed to break out of the $3,300 – $3,000 range on August 31 and managed to grow by 21 percent for the period leading to Sunday, September 5.
However, it went to face a solid resistance near the previous all-time high daily candle close at $3,920. Bulls were not able to ensure a stable break above this line even though they were trying for four consecutive days and on Monday formed a short red candle on the daily timeframe.
The move was followed by an unexpected flash crash on Tuesday, September 7. As mentioned above, the market was having one of its worst sessions since the May correction. The ETH/USD pair, in particular, dropped as low as $3,016 (the lower boundary of the old trading range) but hit a solid buy wall there. It successfully recovered later in the session and eventually closed right below the 21-day EMA at $3,435. It was 12.4 percent down for the day, but still 14 percent up from its daily low.
On Wednesday, the ether bears tested the middle of the range around $3,200 but their orders were quickly absorbed and ETH closed in green above the 21-day EMA.
As of the time of writing the biggest altcoin is trading at $3,487.