Bitcoin has enjoyed an eventful price action throughout September thus far, which has provided investors with a wide range of opportunities to profit.
During the first week of the month, the flagship cryptocurrency took a 19% nosedive that saw it plummet from a high of $12,086 to a low of $9,813. The following week was characterized by a period of stagnation that led to the formation of an ascending triangle of BTC’s 1-hour chart. Finally, the week of September 14th was defined by surging prices following the break out of this consolidation pattern.
Indeed, Bitcoin kicked off Monday, September 14th, on the right foot. Its price seems to have bounced off the hypotenuse of the ascending triangle previously mentioned one hour after the week opened at $10,336.76. Such a rebound encouraged investors to buy in, propelling prices above the x-axis of this technical formation, which led to a breakout.
By Wednesday, September 16th, at 16:00 UTC, the pioneer cryptocurrency had advanced 7.38% from the weekly open to trade at a high of $11,099.95. However, this hurdle was able to contain rising prices at bay. The rejection triggered a 3.28% correction, pushing Bitcoin back below the $11,000 mark the following day.
As the week was coming to an end, BTC recovered some of the losses incurred. By Friday, September 18th, the bellwether cryptocurrency had risen by 1.82%, closing this day’s trading session at $10,937.50. Investors were able to gain a weekly return of 5.80%, making the week of September 14th the most profitable of the month thus far.
Ethereum Goes Through Extreme Volatility, Closing the Week 5% in the Green
The week of September 14th was quite volatile for the smart contracts giant. Its price rose significantly on multiple occasions to the drop abruptly shortly after. While such price action could be ideal for some market participants, overleveraged traders may have had difficulty trying to forecast Ethereum’s trend.
As a matter of fact, Ether entered Monday’s trading session, September 14th, hovering at a high of $366.58. Following the daily open, prices quickly fell by nearly 3% to a low of $355.66. This support level was able to hold, allowing ETH to rebound and rise steadily for the next 15 hours.
By 16:00 UTC, Ethereum had gained more than 8% in value and was trading at a high of $384.60. Despite the upward pressure seen throughout the beginning of the week, bears stepped into the market around this price level. The spike in selling pressure pushed prices down by 7.70% for two consecutive days to a weekly low of $355 by Wednesday, September 16th.
Many buy orders seem to have been filled around this price level, which allowed Ethereum to recover. As a result, the second-largest cryptocurrency by market cap entered a 44 hours uptrend that saw it rise over 11%. By Thursday, September 17th, at 20:00 UTC, ETH had made a weekly high of $394.55.
But as the week came to an end, Ether was forced to retrace after such impressive price action. Ethereum was able to close Friday, September 18th, at $384.60, providing investors a weekly return of 4.92%.
Uncertainty Reigns in the Crypto Market
Although the top two cryptocurrencies by market capitalization were able to generate substantial returns over the past week, uncertainty continues to reign in the crypto market. The thought of Bitcoin’s CME gap at $9,600 continues to haunt investors, while the formation of a bear flag pattern on ETH’s daily chart adds fuel to the rising concerns. Given the high probability of a further downturn, it is imperative to implement stop-loss orders when trading these cryptocurrencies.
The most critical support levels underneath Bitcoin to watch out are the $10,600 and the $10,000 level. For Ethereum, the most critical hurdles sit at $375 and $300. Slicing thought the first barrier would likely lead to a decline towards the second supply wall, but failing to hold above this one could see BTC drop towards $9,000 and ETH to $250.
Konstantin Anissimov, Executive Director at CEX.IO
This article was originally posted on FX Empire