The total crypto market cap lost $333 billion from its value for the last seven days and now stands at $2,025 billion. The top 10 coins were mostly in red for the same time period with Solana (SOL) being the sole gainer with a 12.2 percent of increase. Bitcoin (BTC) is currently trading at $44,627 while ether (ETH) is at $3,220.
Bitcoin closed the trading day on Sunday, September 5 at $51,804 or 3.7 percent higher compared to the last session. The coin was 6.1 up on a weekly basis and successfully confirmed the break above the $49,500 range high.
On Monday, the biggest cryptocurrency continued to move in the upward direction and hit $52,790 for the first time since May 12, 2021. Some analysts, on the other hand, started to notice an unhealthy increase in the funding rates across the altcoin market plus an extremely high open interest given the recent overextended rally. This, combined with the fact the market needed a pullback in order to strengthen the bullish structure, resulted in a heavy crash the very next day.
The entire cryptocurrency market turned red on Tuesday, September 7 with almost all coins in the Top 100 list registering double-digit losses. Bitcoin lost 11 percent and closed at $46,800, but the most important part is the fact it was trading below $43,000 at some point during intraday erasing $10,000 of its market value.
The mid-week session on Wednesday was no different and the leading digital asset dropped below the horizontal weekly support at $46,400 and once again tested the already established demand zone right above $44,000. It closed the day at the 200-day EMA on $46,000.
On Thursday, September 9, the BTC/USDT pair attempted an early break of the $47,200 level but bears quickly pushed the price back down. Still, the coin closed in green with a short candle to $46,370.
The trading day on Friday was a bad one for bulls and they suffered another 3.3 percent pullback. BTC was moving up and down the $44,000-$47,000 range hitting the potentially strong demand zone.
The weekend of September 11-12 started with a positive session on Saturday, during which the coin climbed to $45,140 and was starting to show signs of strength. Then on Sunday, it continued to move upwards and ended the week at $45,989.
What we are seeing early on Monday is a significant price pullback. BTC is trading at $44,620.
The Ethereum Project token ETH managed to break out of the $3,300 – $3,000 range on August 31 and managed to grow by 21 percent for the period leading to Sunday, September 5.
However, it went to face a solid resistance near the previous all-time high daily candle close at $3,920. Bulls were not able to ensure a stable break above this line even though they were trying for four consecutive days and on Monday formed a short red candle on the daily timeframe.
The move was followed by an unexpected flash crash on Tuesday, September 7. As mentioned above, the market was having one of its worst sessions since the May correction. The ETH/USD pair, in particular, dropped as low as $3,016 (the lower boundary of the old trading range), but hit a solid buy wall there. It successfully recovered later in the session and eventually closed right below the 21-day EMA at $3,435. It was 12.4 percent down for the day, but still 14 percent up from its daily low.
On Wednesday, the ether bears tested the middle of the range around $3,200 but their orders were quickly absorbed and ETH closed in green above the 21-day EMA.
The Ethereum token continued to hover around the mentioned exponential average during the trading session on Thursday, September 9, but lost its position above it eventually closing at $3,426.
The selling pressure increased on Friday and the coin lost another 6,4 percent while testing the $3,200 mark once again.
The first day of the weekend came with a small green candle to $3,270 as buyers started to execute their long entries. Then on Sunday the coin hit the 21-day EMA near $3,440 but was rejected there. Still, it closed the week in green.
ETH is currently trading at $3,220.
The Terra project continues to grow at a staggering pace. The Tendermint-based Layer 1 protocol which was built on Cosmos added yet another 15 percent to its valuation on a weekly basis after successfully jumping back from a 35 percent pullback suffered during the last market correction.
The coin managed to finally break out of the $27-$35 range where it was caught since August 18 and rallied all the way up to $45.1 on September 11.
The main reason behind the surge is the growing Cosmos and Terra ecosystems combined with the newly announced Project Dawn — a $150 million funding initiative “to supplement the accelerating growth of the Terra ecosystem”.
Next for LUNA is to attempt to break the $50 mark and enter the Top 10 list while the upper boundary of the old range ($35) will serve as a support.
Altcoin of the Week
Our Altcoin of the week is Algorand (ALGO). The pure proof of stake blockchain platform that aims to fill the gap between traditional finance and DeFi, was one of the best-performing assets during the last seven days.
The ALGO/USDT pair added 80 percent to its value for the period and moved up to #18 on CoinGecko’s Top 100 list. It now has a total market cap of approximately $11 billion after peaking at $2.5 on September 9.
The altcoin broke above the $1.75-$1.8 weekly resistance thanks to a series of good news.
First, it was reported that El Salvador intends to launch its own national digital currency wallet in collaboration with ALGO and using its blockchain platform. Then the Algo Foundation announced a brand-new fund called the Viridis DeFi fund to further support the DeFi projects growth in its ecosystem. The company will offer a total of 150 million of its native tokens (approximately $345 million) to selected companies looking to build on ALGO.
As of the time of writing, ALGO is trading at $2.05.
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