It’s been a rocky start to the week for the cryptocurrency market, with the overall market cap dropping by 8.82% over the past 24-hours. Today’s drop marks the first full day with an overall market cap below $2 Trillion in over a month.
Often compared to Gold because of its use-case as a store-of-value, Bitcoin (BTC) and the crypto market as a whole failed to stand up as an inverse asset to the stock market today. This goes to show that although growing rapidly, cryptocurrencies are still nowhere near Gold as an option for a risk-off play.
BTC has broken below $44,500 support and disrupted its multi-week trading range, currently trading around $43,500. BTC is not yet oversold on daily price or RealMotion, which means it wouldn’t be a surprise to see a test of the psychological $40,000 support level before any kind of recovery.
Ethereum (ETH) briefly dipped below its $3,000 trading range support level and 50 Day Moving Average (DMA) this morning. Currently sitting right above the crucial $3,000 level, a daily close above $3,283 would be the level to regain to continue the positive longer-term trend.
Both BTC and ETH became slightly oversold on hourly price and momentum according to RealMotion, before seeing their prices begin to stabilize at the bottom of the 24-hour trading range. If these two market benchmarks see price and RealMotion stay flat on an hourly basis through the rest of the night, expect to see a significant bounce.
To see why this indication may serve as a potential entry signal and an opportunity to ‘Buy the Dip’ you can read about using RealMotion to recognize intraday breakouts here:
CryptoPulse Weekly Report: 9/4/2021
Keep an eye out for our CryptoPulse Quant trading model in the coming weeks, which will allow you to follow the MarketGauge Risk-Managed Process for how we maximize profits in the cryptocurrency market!
Coins to Watch: Bitcoin (BTC) and Ethereum (ETH) as benchmarks for marketwide recovery.
Today’s Winners: OMG Network (OMG) +6%
Today’s Losers: Cryptocurrency Market appears to have suffered from the speculation surrounding the China Evergrande fiasco. While Gold (GLD) gained as a hedge against the stock market, cryptocurrencies did not have the same effect today.