October 1, 2022

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Crypto Price Weekly Analysis 9/16: BTC, ETH, BNB, ADA, SOL

Crypto Price Weekly Analysis 9/16: BTC, ETH, BNB, ADA, SOL
Before the release of the US’s CPI data for August, the cryptocurrency markets were fairly...

Before the release of the US’s CPI data for August, the cryptocurrency markets were fairly optimistic. But after the release, it became apparent that inflation was indeed rising instead of slowing down. As a result, a flight of money away from risky assets such as crypto was witnessed across the market.

Overall, the market capitalization of cryptocurrencies dipped below $1 trillion under fears of rising inflation and more rate hikes. That’s why if you look at the BTC, it had dropped almost 13% since 13 September, which is the same day the US CPI data was released. Similarly, ETH is also down by 17% since the release of the consumer price index!

Now, let’s look at the price action of different cryptocurrencies and check what’s going on and what’s ahead:

Bitcoin (BTC)

Weekly Open: $21,826.87

Weekly High: $22,799.00

Weekly Low: $19,442.76

Bitcoin’s (BTC) weekly opening price was $21,826.87, from where it attempted to go all the way up to $22799 (weekly high). However, this little bull run turned out to be shortlived as the US CPI data was worse than the analysts’ expectations. As a result, Bitcoin (BTC) is now back to trading below the $20,000 zone.

The way Bitcoin (BTC) continues to close above, and below the $20000 level, it appears as if that level has become somewhat of a joke.

For now, Bitcoin (BTC) is bearish and is trading below the Ichimoku clouds on the H1 charts. Furthermore, the technical readings from all the trend indicators are also painted red which points towards even more downside.

If we look at the price action of last week, it seems that some support may be found around the $19,000 area. If you witness some bullish momentum around that area, then that could be an indication of a bounce higher.

Ethereum (ETH)

Weekly Open: $1766.12

Weekly High: $1783.00

Weekly Low: $1412.44

Ethereum also repeated a similar price action as we saw in the case of Bitcoin (BTC). Once again, the apparent catalyst for the start of this yet another bearish run was the US CPI data release which showed that inflation continues to run wild despite the massive interest rate shakes. As a result, the flight of capital from risky assets such as Ethereum (ETH) was witnessed along with other major crypto tokens.

For now, ETH is trading below its Ichimoku clouds, and the clouds’ color is also red, which is an indication that bears are in full control for now. Furthermore, you can also see that the technical readings for the 1 hour, 1 day, and even the weekly timeframe are a strong sell. As for the 1-month timeframe, the technical readings of the MA are still “SELL,” which tells us that bears are controlling the game in Ethereum (ETH).

The next support zone is located at $1400, $1360, $1310, and $1250. However, any buy signal in the Ethereum (ETH) should only be taken if you also see positive sentiment in the overall crypto market.

Binance Coin (BNB)

Weekly Open: $295.30

Weekly High: $300.00

Weekly Low: $266.3

Binance Coin (BNB) attempted to touch the price level of $300, but the US CPI data release turned the price action negative for BNB as well. So in that sense, a similar story is being played out in Binance Coin (BNB), which is now trading 9% lower than the weekly open price of $300.

Furthermore, Binance Coin (BNB) is trading in a perfect bearish channel as the angle of descent is similar in both the upper and the lower trendlines. So based on this information, it makes sense that we might see a small bounce once the price hits the lower trendline of the channel.

And since the angle of that bearish channel is a little steep, there is also a chance that it might never touch the lower side of the channel at all! In either case, the next important levels of support are $265, $260, $250, and $240.

Cardano (ADA)

Weekly Open: $0.5098

Weekly High: $0.5197

Weekly Low: $0.4540

Cardano (ADA) opened the Monday session with an opening price of $0.5098, from where it touched $0.5197 (weekly high). But, the negative sentiment in the broader crypto market also sent the ADA lower. Right now, Cardano (ADA) is trading at 11.6% lower than its weekly high of $0.5197.

Furthermore, you can also look at the charts (ADA – H1 chart) that the coin is now trading below its Ichimoku clouds, and a negative trendline is also putting pressure from above. The presence of all these things points towards a bearish scenario similar to what we are seeing in BTC, ETH, and BNB.

The next support zones are located at $0.4540, $0.4490, $0.4400, and $0.4350. Considering how it has been a few days since the release of US CPI data, there is a good chance that we might start to see some positive price action in ADA soon.

Solana (SOL)

Weekly Open: $34.99

Weekly High: $39.01

Weekly Low: $31.58

Solana (SOL) is also bearish and is trading below the 50 SMA (hourly) as well as the Ichimoku Clouds in the hourly chart. On the hourly chart, one of the SMA lines which can tell us about the direction of short-term and mid-term trends is the 50 SMA.

So for any successful bullish runs in Solana (SOL), it must cross above the 50 SMA with positive momentum first. Next, the Ichimoku Clouds must also be crossed to ensure that the bullish momentum is indeed present.

The next support zones for Solana (SOL) are located at $32.50, 31.00, and $30. However, there is also a slight chance that we might not see the Solana (SOL) reaching these levels since the effect of the US CPI data release has started to wear down.

Conclusion

This week, there was nothing positive to report among the top cryptocurrencies besides the stablecoins, which are designed to be stable from price fluctuations. The chief catalyst for the week was the US CPI data release which also tells us an important lesson. Whenever there is a risk-off scenario, people will tend to move away from the risky assets. Unfortunately, cryptocurrencies are still deemed risky by the bulk of investors.

During the next week, we may see some bullish action provided that the ill effects of the US inflation data start to wear out.

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Source: visionary-finance.com