Price Update: Bitcoin remains below the $20,000 threshold and Ether is up slightly on the day. Gas prices surged and the euro and pound crashed after Russia cut off gas flows through the main Nord Stream 1 gas pipeline to Germany. Traditional markets in the United States were mostly closed due to Labor Day.
Market Moves: Could Ether See Another Price Rise Before the Merger?
Chart of the day: Bitcoin’s recent consolidation around $20,000 has taken the form of a symmetrical triangle.
This article originally appeared in First Mover, CoinDesk’s daily newsletter providing context for the latest moves in the crypto markets. Subscribe to receive it daily in your inbox.
Bitcoin (BTC) was trading flat on the day at around $19,700. The biggest cryptoThe world’s currency in terms of market value hit a low of $19,400 over the weekend after posting a short rise on Friday following the US jobs report.
As BTC is trading below the crucial $20,000 support level, a significant breakout at this point could be really damaging, according to analyst Craig Erlam at OANDA.
“The next key level below here would be the June lows around $17,500,” Erlam said in a morning market note. “Given the near-term risk appetite outlook, this does not look good.”
Ether (ETH), which has performed slightly better than bitcoin in recent weeks, is up 1% in the past 24 hours. The highly anticipated network merger will take place in just over a week. For altcoins, Polkadot was up 4% and Chainlink was up 3.7%.
In traditional markets, gas prices soared and the euro and pound tumbled after Russia shut down gas flows through the main Nord Stream 1 gas pipeline to Germany. The move has created more uncertainty in Europe as the winter months approach. The Stoxx Europe 600 index fell 1.1%. Traditional markets in the United States were mostly closed due to Labor Day.
In the news, the Nigerian Export Processing Zones Authority (NEPZA) is in discussions with cryptocurrency exchange Binance over plans to establish a virtual free zone focused on blockchain and the digital economy.
Unusual blockchain data showed that 10,000 BTC, worth over $200 million, was moved in two transactions over the past week.
And Poolin, one of the largest bitcoin mining pools in the world, has sought to assure users that their funds are safe while acknowledging that it faces liquidity issues. Users have been complaining about issues with withdrawals from their wallets since at least August.
Ether derivatives markets continue to heat up as merger nears
Ether (ETH), the second-largest cryptocurrency by market value, looked poised for another price rally ahead of the Ethereum ‘merger’, according to observers who track chart patterns. See the article: AAVE (AAVE), Compound (COMP) and Mountanaz (MNAZ): Crypto Lending Platforms in 2022.
Last week, the native Ethereum blockchain token broke away from a descending wedge pattern identified by two converging, descending trendlines connecting the August 14 and August 25 highs and the August 10 lows. , August 20 and August 28.
“The formation is strong confirmation that ETH could rise in September more than anyone realizes,” Bill Noble, chief technical analyst at cryptocurrency research firm Token Metrics, told CoinDesk, when asked. asked him what the breaking of the corner indicates.
The breakout of the Ether wedge indicates that the correction from the August 14th $2000 high is over and the uptrend from the June 13th $1000 low should resume.
The four-hour chart of Ether price shows descending trend lines and a breakout of the falling wedge. (TradingView/CoinDesk)
Prices doubled in the four weeks leading up to August 14 as stock markets regained their balance and Ethereum developer Tim Beiko hinted that September 19 would be the deadline for the long-awaited Ethereum merger. – the technology upgrade that will transform the smart contract platform into a proof-of-stake network. This overhaul is expected to lead to a drastic reduction in the supply of ETH and give the cryptocurrency status as a store of value.
The merger is expected to take place around September 15.
Traders often use technical analysis – a study of price patterns – to help them make investment decisions. Read also: Can LTC Price Surpass $120 This Weekend?.
The “descending wedge” pattern starts wide at the top and contracts as prices fall, causing the two descending trendlines to converge as the pattern matures. The converging nature of trendlines represents shallower lows, a sign of diminishing selling pressure. Therefore, a breakout is considered a sign of a bullish recovery.
Ether exited the falling wedge on Thursday, paving the way for a pre-Merge rally.
“Ether came out of a falling wedge,” said Decentral Park Capital researcher Lewis Harland. “A move above $1,700 would add conviction in the bullish momentum towards the Merge.”
Bitcoin forms a symmetrical triangle
The four-hour chart of bitcoin price shows the formation of a “symmetrical triangle,” a pattern indicating a struggle between a bear and a bull. On the same subject : 3 Steps to Responsible Cryptocurrency Investing for 2022. (TradingView/CoinDesk)
Bitcoin’s recent consolidation around $20,000 has taken the form of a symmetrical triangle.
The sequence of events will depend on the direction that the tug of war between the bear and the bull will take.
A collapse would open the doors to a floor below the $18,000 hit in June.
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Find out here why Bitcoin (BTC) is holding below $20,000 as the energy crisis deepens in Europe
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