Digital assets seem to still be reeling from the effects of China’s latest ban on cryptocurrencies. Bitcoin and Ethereum still look unclear, as to which direction to take.
Digital asset prices today, the 27th of September, have been a mixed picture of green and red, as crypto markets begin to timidly grasp at regaining bullish momentum. This, after markets underwent a minor price dump, on the back of news of the latest ban on cryptocurrencies from Chinese authorities, broke last week.
The latest China-induced market crash had – almost – negligible impact on markets. This may indicate that the digital assets market is becoming more resistant to the Chinese government’s regulatory heavy-leaning it often flexes on crypto assets. The largest cryptocurrency by market capitalization, Bitcoin – despite experiencing a 4% price drop – is looking stronger, with Market Dominance creeping upward (currently at ~42%.)
Bitcoin looks a tad stronger than a few days ago, priced at $43001 (at press time,) up from a low of $39,580 a few days ago. Technicals indicate that the godfather crypto asset may not be out of the woods yet, however, price action appears to be testing the $41,800 resistance level.
This marks the third visit to the aforementioned price level, by $BTC in the past few weeks. With a Hanging Man, bottom formed three days ago, having its lows go unchallenged by recent negative price activity. It is possible that a bottom was established and bitcoin is poised for a price climb.
The MACD Indicator shows a narrowing negative histogram and growing momentum. The fast line dissecting, and breaking above the slow-moving average would probably offer more confidence in an impending upward move, however.
Though the market’s Stochastic RSI Indicator, appears to be moving out of the oversold condition, its ascent doesn’t offer much confidence in sustained upward action. The Ichimoku Cloud, currently, also paints a dark picture for times ahead.
Should bullish price action kick-off, a break above the $47,3k resistance level would possibly send the $BTC price above $51,000 to new highs; moderately estimated to be at the $68k – $77k price level. Failing which, a drop to, or below $40k may still be in the cards. One may want to wait for a clearer picture, before assuming any position.
Ethereum, on the other hand – priced at $2992the at the time of writing – seems to still be in the throes downward-fascinating Wedge consolidation pattern, and may see a week or two of ranging price action before the market makes a decision. A return to sub $2 price levels may be in the cards for Vitalik Buterin’s ETH before this market regains bullish sentiment.
Indicators still show an imperfect picture, though there’s a chance that bullish price action may soon resume – barring any further pickups. A clear challenge of the $3,63k resistance level may offer more bullish sentiment.