17 September 2021: Although the market has seemingly slowed over the past week, there have been some dramatic winners and losers once again with the likes of Solana, Algorand, and FTX all taking a punch whille Avalanche (AVAX) and Cosmos (ATOM) have seen decent gains. This article will, as always, give some insight on Bitcoin, provide some charts on rallying and dropping coins, and give an update on market sentiment as we move into another weekend here in September.
Keep an Eye on Bitcoin
All eyes should be watching Bitcoin for a breakout or further correction over the next few days. Currently, Bitcoin is actually sitting 2% up since our update last week. However, it looks primed to take another stab at the 50 day moving average and retest support at $45,000. Right now, this looks like the possibility for a second retest and then restart of the previous rally upwards.
Take a look at the Bitcoin chart below:
Since the first week of August, Bitcoin has essentially been trending between the two large horizontal bars visible on the chart. This range has a low of $45,000 and a high of $49,750. So long as this range stays valid, the probability of this being a consolidation period for Bitcoin is relatively high. Therefore, from a risk analysis standpoint, adding to your Bitcoin holdings within this range is desirable. If a candle closes below the $45,000 mark, that would be a signal for lower prices coming on Bitcoin and possibly the broader market.
It is always important to get a full picture of the recent price action for Bitcoin and the obvious picture here still points to a dramatic bullish picture. Bitcoin on a long term outlook has been in a very strong uptrend since November of 2020 or arguably even earlier. With El Salvador's adoption of Bitcoin now official, there is really no reason for Bitcoin to have a large negative turnaround outside of possible external economic factors. It is a great idea to keep up to date with what the Federal Reserve is doing in the United States along with check ins on the strength of outside markets - namely the SP500 and DOW.
UPDATE for 18 September 2021: As of this morning (Saturday here in the States), the Bitcoin chart now looks much cleaner than we showed yesterday. Bitcoin has had a very encouraging bounce back off the 50 day MA and looks poised for a healthy next leg up. Right now the price is sitting right around $48,500 and, with some momentum into next week, could finally break through the $50,000 mark for the final time this bull run. Check out today's chart below:
Based on the setup we are seeing here on Bitcoin, the probability of a coming leg up is increasing. This overnight change in direction should be a boost of confidence for holders and may serve as a signal to add to bags. Of course, anyting can happen, especially here in the cryptocurrency space. Monday this week should be a very strong signal of short to medium term health across multiple financial markets, including crypto.
The Other Guys - Altcoin Insight
The two feature coins this week are going to be Solana & Algorand as they have both had sizable pullbacks after their respective rallies. It is apparent that Solana did experience some heavy network difficulties over the past week which absolutely contributed to a reduction in price. Considering this, a correction from the major rally that touched over $200 per $SOL at one point was needed anyway. While the probability of Solana having more downside is likely, this is still a great opportunity to find an entry point into a very popular cryptocurrency. Solana will undoubtedly have higher gains coming in 2021 and should still be well up on everyone's radar.
Check out the $SOL chart below:
Algorand has unsurprisingly also come back down to Earth which was why we did reccommend that holders book some profits after the monster run up. Algorand has since come down back under $2. We feel that Algorand still has more downside, however it should also be noted that so long as market dynamics remain healthy, Algorand under the $2 mark is a steal for a long term hold.
Here is a look at Algorand's chart over the past year:
Both Solana and Algorand are down over 20% the past 7 days. While more upside is a likely probability for both of these coins, we reccommend that interested investors or current holders keep a close eye on both of these projects this coming week for an entry point to hold for the medium to long term. How long these two projects remain in a downtrend or consolidation may depend on how Bitcoin & Ethereum perform over the next week
Shoutouts to Underappreciated Performers
Avalanche (AVAX), though a slightly underappreciated project within the cryptocurrency space, had a very profitable breakout over the past week. $AVAX has brough holders a nice 60%+ gain over the last 7 days. In addition to Avalanche, other well-performing projects include the likes of Terra (LUNA), Polkadot (DOT), and Cosmos (ATOM). All three of these projects have net double digit gains over the past week.
Polkadot has quietly been a very steady project to hold onto in the past several weeks. With more development talks heating up for the platform, Polkadot is a very interesting project to keep an eye on. The same goes for Cosmos as the network continues to improve and develop. Both of these platforms will be the main topics in some coming RekTimes articles, so be on the lookout for those.
As far as alts go, don't forget about the likes of Ethereum & Cardano. Keep an eye on Algorand, Solana, and other rallying coins as they cool off, and don't overlook more steady assets like Polkadot.
Market Sentiment Finally Reaches Neutral
A quick update on market sentiment entering the weekend, after a fearful last week the market has now entered a period of neutrality. A possible indicator of market consolidation, neutral means just that - a balanced market. This is a great time to be conducting research, crafting investment plans, and balancing your portfolios as the market heads into the fall season and towards 2022.
Summary
The past week showed nothing to drop any confidence on the continual bull market. With Bitcoin and Ethereum finally cooling off, this is a fantastic time to adjust portfolio balances, add to the necessary bags, and prepare for the remaining final 15 weeks of 2021. For ideas on coins we are bullish on, check out September's Top 10 list. Included our the obvious Bitcoin & Ethereum, along with alts such as Ampleforth, Chainlink, and The Graph.
This weekend leading into Monday should help give a more concrete short term outlook on Bitcoin and the broader market. Keep an eye on Bitcoin's price chart, altcoins, and stocks once Monday comes around. Everyone have a great week and we will see you all back here next weekend for another update.
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