After reviewing the bearish scenarios in multiple cryptocurrencies for several weeks, it seems that things might be turning around. At least, that’s what we can see in Bitcoin, which has gained more than 13% since the 7th of September. Similarly, all the other big cryptocurrencies are mostly positive, which is a good indication for the markets.
According to experts, this rise in Bitcoin (BTC) can be traced back to the recent interest rate hike by the ECB (European Central Bank). Similarly, the Fed (Federal Reserve Bank) from the USA has also pointed toward further rate hikes in the future. Both of these things seem to be lending support to Bitcoin and other cryptocurrencies.
Despite the recent increase in cryptocurrency prices, let’s not forget that Bitcoin (BTC) is still trading 70% lower than the all-time high price level of $69,000. But as they say, all big things start small, and hopefully, that’s what we will witness in the markets.
Now, let’s look at each cryptocurrency individually and figure out what happened and what could happen!
Weekly Open: $20,000.03
Weekly High: $21,400
Weekly Low: $18,510.77
Right now, Bitcoin (BTC) is at its weekly high, and by the time you read this analysis, it might be trading above that value! In short, Bitcoin (BTC) is in a bullish mode right now and is also pushing other coins with it.
If you look at the Bollinger Bands, you can see that the lower band is still around $18,893 while the upper band is at $21,862. This spread between the upper and lower bands is an indication of high volatility and high volume in the BTC/USD market.
Looking ahead, the next resistance zones are located at $22000, $23500, $24000, and $25000. It is also possible that we might see a little move down as investors take profit. However, caution is still needed as Bitcoin (BTC) is still bearish long-term.
Weekly Open: $1579.29
Weekly High: $1746.13
Weekly Low: $1490.66
From the 5th of September 2022 to the 9th of September 2022 (today), ETH has added almost 8% to its value and is also showing multiple bullish signs. For starters, you can see that bullish trendline that is pushing the cryptocurrency higher.
Another major bullish development is in the form of inverse head and shoulder (reversal pattern). You can see that the left shoulder was completed on the 6th of September, while the head was completed on the 7th of September. The right shoulder was completed on the 8th of September, but a break of the neckline took place on the 9th of September at the price level of $1651.
Based on the measurements, ETH has the potential to gain 11% in value based on that bullish reversal pattern. This means that a target of around $1850 is very much possible if the positive sentiment remains in the crypto market.
However, the long-term trend in Ethereum (ETH) is still bearish, which means bulls should be cautious of any downward moves. Any signs of confusion or negative news can easily bring this while castle down and leave us in bearish territory once again.
But for the moment, ETH is bullish, just like Bitcoin (BTC), and bulls are enjoying the market.
Binance Coin (BNB)
Weekly Open: $279.1
Weekly High: $295.9
Weekly Low: $258.6
Binance Coin (BNB) is also positive and is trading 4.5% higher than its opening price of $279.1 for the week. Just like Ethereum (ETH), BNB is also showing an inverse head and shoulder pattern. However, its left shoulder is a little long while the right shoulder is short. Although the reversal pattern is not ideal, we can’t discount its presence altogether!
Given the bullish sentiment of the broader cryptocurrency market, it makes sense to consider that Binance Coin (BNB) will also make some bullish moves. Based on the bullish reversal pattern, which started on the 2nd of September and ended on the 9th of September 2022, Binance Coin (BNB) could add 9% to its market value.
After making the calculations, it seems that BNB is on its way to targeting the price zone located at $310 – $315. However, always check the price action of Bitcoin and Ethereum before making any moves into BNB. These 2 coins can alter the direction of the entire cryptocurrency market and thus must be checked first!
Weekly Open: $0.5035
Weekly High: $0.5122
Weekly Low: $0.4536
Despite the positive market sentiment, Cardano (ADA) is around 3% low from its weekly open of $0.5035. It seems that the poor performance of Cardano (ADA) has something to do with its own, which is preventing it from enjoying the baby bull run of the broader crypto market.
In my personal opinion, it seems that Cardano is making a right shoulder for its inverse head and shoulder. If you look at the chart of ADA attached above, it will become clear.
Given how we already have seen similar structures in Binance Coin (BNB) and Ethereum (ETH), it makes sense to reach that conclusion. How that bullish structure could affect the ADA prices can only be answered if that structure is completed.
Based on the price action of ADA, the current trend is bearish to neutral. But if the inverse head and shoulder are complete in the next few days, the short-term trend will turn bullish.
Weekly Open: $32.17
Weekly High: $35.96
Weekly Low: $30.31
Solana (SOL) is trading 8% higher than the $32.17 (weekly open price), which is in line with what’s going on with the cryptocurrency market. If you look at the attached chart, Solana (SOL) has also cleared the resistance of $33.75 – $33.80, and a rather steep bullish trendline is supporting it along the way.
Based on the technical readings, Solana (SOL) is also bullish for the short term and is getting its support from Bitcoin and other major coins.
Looking ahead, the next resistance zone includes $36, $36.50, and $37. From these levels, Solana (SOL) has already retreated multiple times – So, so if you have a bullish position or are planning to take one, be wary of these price levels.
Although the short-term trend in the crypto market is bullish for now, let’s not get ahead of ourselves. We have already seen several moves during the last few months – The bulls make a move only to be crushed by the bears. So, for now, enjoy the baby bull while keeping an eye on the long-term bearish trend.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however, no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the cryptocurrency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal, or accounting advice.