(Alexander Kuptsikevich – FxPro Financial Services Limited)
Market picture
Bitcoin lost 3.8% on Tuesday, ending it at around $23.2K, and is developing a decline to $22.9 by Wednesday morning. Ethereum has lost 5.6% in the last 24 hours, to $1680. Top altcoins are down 2.5% (BNB) to 7.2% (Solana).
Total crypto market capitalisation, according to CoinMarketCap, fell 3.9% overnight to $1.08 trillion.
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The recovery in stock indices has choked, but even earlier and more dramatically, these changes have affected Bitcoin and the whole crypto market. Should the decline develop, investors and traders should pay close attention to the 21500 area, where the previous local lows are concentrated. A dip below that and a decisive return below the 50-day average could well be the start of a new wave of decline that could take the crypto market to new lows. At least, there might be a test of the June-July lows.
News background
According to CoinShares, net capital inflows into crypto funds slowed to $3m last week, with Ethereum accounting for the most investments at $16m. Funds investing in bitcoin lost $8.5m; those allowing shorting it faced $7.5m in outflows.
Michael Novogratz, CEO of investment firm Galaxy Digital, expects bitcoin to consolidate in the $20,000-$30,000 range for a while.
Circle has blocked 75K USDC on Tornado Cash mixer wallets, which have come under sanctions from the US Treasury. According to the agency, attackers have laundered cryptocurrency worth more than $7 billion since its inception in 2019, with about $0.5 billion linked to the North Korean hackers Lazarus Group.
The Reserve Bank of Australia is working with the Digital Finance Corporate Research Centre (DFCRC) to launch a pilot project to explore options for the practical use of CBDC digital currency.
El Salvador President Nayib Bukele said the legalisation of bitcoin last year contributed to significant growth in the country’s tourism.
Iran conducted its first import transaction worth $10 million paid in cryptocurrency, bypassing the global financial system restricted by US sanctions.
Is a 75% decline still possible for the Ethereum Classic price?
(Tony M. – FXStreet)
– Ethereum Classic price continues to display strength in the market based on volume.
– ETC has failed previously despite showing similar bullish technicals.
– Invalidation of the uptrend is dependent on $13 holding as support.
Ethereum Classic price is conflicting
Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally.
Ethereum Classic price tends to consolidate under low volume propelling higher. The Relative Strength Index shows a bearish divergence between highs established in March 2022 at $48 and the recent August highs near $39. During March, the Volume Profile indicator displayed a classical uptick in volume just like it is currently displaying. Still, ultimately the bulls lost momentum and a sweep-the-lows event occurred days after.
Ethereum Classic price currently auctions at $36.81. Although short-term bullish targets reside at $48, $50 and $60, investors should be aware of the history of Ethereum Classic price as it tends to diverge from classical style price action methods. A sweep-the-lows event will remain on the cards until the RSI finds balance and reconquers oversold territory.
Thus, it is best to think of the Ethereum Classic price as a short-term liquid asset instead of a coin to faithfully hodl. Early evidence of a sweep-the-lows event targeting will be a breach of $18.90. If the bulls lose ground at this level, $13 and potentially $8 will be on the cards, resulting in up to a 75% decrease from the current Ethereum Classic price.
In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market. -FXStreet Team
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