Weekly crypto market analysis with Geco.one 27.09.2021
The BTC price dropped between September 7 and 21 this year by over $ 13,200, over 25 per cent. For several days, however, it has remained in the range from $ 40,600 to $ 44,900.
Despite some stabilization after the previous dynamic declines, the current formation quite strongly resembles a kind of a rebound market form, which increases the risk that it is a correction, after which the quotations of the oldest virtual currency will return to the downward path.
If that happened, the BTC price could eventually drop to the level of 38,000 / 36,500 USD. It’s where another crucial support zone is located.
We could also expect potential declines in the Ethereum quotations. The price of this cryptocurrency fell between September 3 and 21 this year by almost 34%, breaking the line of the upward trend and the horizontal support of $ 3,160.
Thanks to the increases observed in recent days, the market returned to the area of the recently defeated support (now resistance) of $ 3,160. However, it is worth noting that this level coincides with the measurement of 50% Fibonacci correction from the earlier downward impulse, which may determine the emergence of a more significant supply response in its vicinity.
If this happens and the zone is permanently rejected, the ETH price could drop to $ 2,625 or even to the vicinity of $ 2,350.
Looking at the Bitcoin Cash (BCH) quotation, we will notice that the price of this cryptocurrency recently broke through the bottom of the parallel downturn channel formation and then entered the horizontal trend phase between $ 485 and $ 520.
It is noteworthy that the upper limit of this formation coincides with the measurement of 50% Fibonacci correction from an earlier downward impulse. Moreover, taking into account that the consolidations are usually corrective formations, it can be concluded that the risk of breaking the current formation downwards statistically increases, which in turn could open the way for further declines of the BCH even to around $ 395.
Looking at the Litecoin quotations, we notice that, in line with our last week’s projection, the cryptocurrency’s rate has recently broken below the technical support of $ 164 and has dropped to around $ 146.
For several days it has been moving in a horizontal trend between the levels mentioned above, which increases the likelihood of further declines. If the market slides below $ 146, then the LTC price could drop even towards $ 105. It’s where the next important support on this chart is.