Welcome to another crypto market outlook for the 8th of September!
From BTC dipping below $55,000 to ETH closing the week bullish despite the dip, and the Fear & Greed Index signaling "Extreme Fear," we will cover it all in this article.
Today, we will cover the following topics:
- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks
Market Heatmap and Fear and Greed Index
Despite the significant dip in BTC this week, ETH still managed to close the week bullish with a gain of around +2.3%.
The market sentiment is mixed, as shown by the heatmap, with almost all altcoins hovering around monthly support or demand zones.
Given the fact that BTC and the entire market are still dipping, the Fear & Greed Index is still signaling fear, with the meter reaching its peak at "Extreme Fear" yesterday. This could be a signal to start considering long positions.
US500, DXY and Gold analysis
As anticipated in our market outlook last week, the US500 rejected the supply zone marked in red and has been dropping significantly.
However, from a long-term perspective, this is merely a bearish correction within the rising wedge pattern highlighted in orange.
That’s how clean classic price action can be. US500’s momentum shifted after breaking below the previous low at 5,545.
The next support is now the lower weekly trendline, which intersects with the 5,300 round number.
DXY continued to decline this week within the descending channel, as shown in orange, and we are still anticipating a bearish move toward the $100 round number and the lower bound of the red channel.
On the 4H chart, the bears will remain in full control unless the previous high at $102, marked in orange, is broken to the upside.
The closer DXY gets to the $100 mark, the higher the likelihood of bulls stepping in.
With everything happening worldwide, Gold is on the verge of either breaking above $2,500 or facing a rejection.
As a leading indicator of global stability, it’s important to keep a close watch on it.
Here are the possible scenarios:
Bullish: For the next bullish wave to begin, a break above the upper bound of the range at $2,533 is required.
Bearish: For Gold to take a pause and push lower for a few days, a break below the structure at $2,470 is needed.
USDT.D, Bitcoin and Ethereum analysis
According to previous market outlooks, we expected USDT.D to retest the upper bound of the channel.
That retest has finally occurred, indicating that the market may be overextended enough to start pushing down. However, we'll need to see if this will result in a short-term or long-term move correction.
Since USDT.D is hovering around a significant resistance level, the bears might step in at any time, especially if the recent low at 6.04% is broken to the downside.
As expected in our latest market overview, another dip occurred following the break below the $58,000 mark.
The next support is around the $50,000 - $52,000 zone. As long as this level holds, we will be looking for medium-term buy setups on lower timeframes.
BTC is currently trading within the falling channel highlighted in red, so we are expecting further bearish movement within the $50,000 support zone.
For the shift in momentum that we are all waiting for to happen, we need a break above the falling channel.
After failing to hold above the $2,500 support, ETH dipped by over 14% in just three days.
However, this week, ETH rejected the $2,000 - $2,100 support zone, so we can now expect some potential bullish action soon.
Here are the expected scenarios:
In the short term, ETH remains bearish as long as it continues trading within the falling channel.
A long-term bullish movement toward $3,000 would begin only if the $2,450 resistance level is broken to the upside.
Quotes / Advices
I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.
~ Tom Basso
Closing Remarks
In summary, BTC has seen a significant dip, while ETH showed resilience with a +2.3% gain, despite the overall downtrend.
US500 is in a bearish correction, DXY is testing the $100 mark, and Gold is at a pivotal level near $2,500.
USDT.D remains bullish in the medium term but is facing resistance, while BTC and ETH continue to trade within falling channels.
