Crypto Frontline

BTCUSD (Coinbase)

Bitcoin weakness was also the key theme last week, and the price could barely find temporary support around $53.5k. Still, that’s not strong enough to suggest the tide has turned in favor of buyers. September bearish seasonality is ruling the game and we might see more selling before buyers are incentivized to go long again on mass.

If last week’s low is breached, we look for support around $50k – $49k. That’s a key area where buyers must step in to keep the consolidation structure in place. Below it, the next support level to watch is $45k.

We have to say that if that level is reached, then the sentiment will turn more bearish and might lead us to believe that this is not a consolidation, but a topping pattern. That hasn’t happened yet, but all options are on the table.

In case the bounce continues, the daily 20 EMA + $57k level should act as resistance as sellers enter on rips. More gains above that zone will be encouraging, but for now, we want to flag that scenario as the least likely outcome.

ETHUSD (Kraken)

Ether sellers are also in control as we see the price slide to levels not seen since the August 5^th flash crash. Lower lows and lows highs on an intra-day basis suggest the bears are in control. We want to point out that the daily RSI is unable to bounce from oversold conditions, which is another sign of concern for bulls.

As things stand right now, we think it’s better to wait for the price to go lower, before committing to any bids. The area around $2,000 – $1,900 looks like a decent support and that’s where a stronger rebound could unfold.

We can’t make 100% accurate predictions, but the probability will be more favorable for buyers as we slide an extra 10% from current levels. Don’t forget that the last 3 months of the year are bullish for crypto, in terms of seasonality.

ADAUSD (Binance)

The losses in Cardano last week were not that big, which shows that even during times of weakness, traders can still find a place of refuge while being long. Even though ADA has been under pressure for months, that seems to be easing.

Since the low for the year was set on August 5^th and the market was not able to retest that, it might be a sign of buyers accumulating. We view the 27.6 cents and the 24.5 cents as strong support levels and potential places where a rebound can start.

On the upside, the market has treated the daily 20 EMA as resistance several times. On top of that, we see ADA consistently rejecting a bearish trend line. While the price stays below it, the sentiment continues to be bearish.

A break on the upside could unlock further bullish momentum and we’ll look at 40 cents and 45 cents as resistance levels. The ultimate test will be to breach the daily 200 SMA. That will confirm ADA is back in bullish territory.