Will Focus Shift to the Top Two Cryptos – Bitcoin and Ethereum?

The crypto market is clearly leaving hints and clues that the sellers are still in the game. The volatile market has brought the prices down to the recent support levels despite the buyers attempting to make a move to the upside earlier yesterday.

In the previous week, the prices dipping instantly already gave us a clue that the bulls are facing issues to head higher. But the interpretation of the buyers losing momentum is different in the current case. Unlike previous drawdowns, the recent flash crash comes in the form of a retracement after an overextended run to the north.

For any healthy market (trend), it is vital for the price to temporarily reverse its trend in terms of profit-taking so that the bulls can continue with their next set of higher high sequences. And the crash that came in last week is comprehended as a retracement and not a reversal, in essence.

Crypto Price Roundup

The ranging crypto market is back in action. As the mainstream was in anticipation for the price to continue its uptrend trajectory with minor pullbacks, the entire market flipped. Most markets, with a few exceptions, are either recovering gradually or consolidating sideways.

The price of BTC crypto that had breached the $50k mark plummeted its way down to levels around $45k, area support on the larger timeframe.

After the crash to the downside, the Bitcoin market did consolidate between $47,000 and $45,000. But in terms of momentum, the bears seem to be getting stronger every push to the south while the bulls are failing to react compellingly from their demand zones.

Coming to the king of altcoins – Ether (ETH), the prices action is more or less the same as that of Bitcoin. Like the rest of the cryptos, ETH faced a downturn from $4000. The ETH market lost 25% of its value, taking the price all the way down to $3000. Of course, the recovery from the lows came quick, as the market recovered $500 in the same candle that dropped significantly. In fact, the market ended up taking resistance at $3,550. But, on the lower side, the price left lower lows, with no potential support during the consolidation. In essence, the market has turned into a downward channel.

Finally, Cardano token looks to be the only one of the three cryptos to face the least damage. After setting an ATH to $3.1, the price dropped by a dollar in the recent flash crash. However, the support at $2 led the price shoot to $2.5 in no time. Later, the support got shifted higher to $2.3 as the buyers stepped up.

Slight Hope Arises for Bitcoin

The Bitcoin market made its move north in the beginning of August, where the long-held resistance was broken with compelling momentum as well as immense volume. The rally that began in August continued without any break of wedge until $52,000. As the market tried to trade higher, the instant plummets left the Support & Resistance 2 (S&R2) breached. And the breakthrough happening with intense power is certainly a cause of concern for the investors.

However, the S&R1 held firm as the price shot up in a flash after touching it. The buyers at the S&R1 were able to take the price no higher than the nearest support at $47,000. Since the prices dropped from this support, it can be concluded that the level has turned into potential resistance. As a matter of fact, the newly formed resistance level had the ability to push the price south every step of the way.

Currently, the prices are back down to the S&R1, where the buyers have shown their presence yet again. Given that the seller does not attempt a lower high, the market can certainly head to the S&R 2 with sufficient momentum on the buyer’s side.

Ethereum Holds Firmly at Demand Zones

The Ethereum cryptocurrency price chart is more or less similar to that of BTC. After the longest consolidation this year, the market successfully breached above $2,600 with great intensity. The market headed north for three weeks without any bearish candle along the way.

But reaching the $3,356, the bulls began to lose pace. As a result, the price went into a mini range, with equal highs and higher lows.

Currently, the market is trading at the same level amid the crash from the $4k mark. And the market clearly holding at the demand zone indicates that the bulls are still in control of the ETH market. But one cannot deny the fact that the sellers came in quite strong. Thus, investors must be aware of these bears despite the market being at a discounted price.

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