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The cryptocurrency market was half a step away from launching a full-fledged bullish trend. The main coins were climbing or already consolidated above the final resistance points, but due to a number of factors there was a powerful slump of more than $300 billion. The main cryptocurrency made the biggest loss. It leveled all the recent week's achievements and on September 10 was again near $46,00. It is extremely difficult to track the exact dynamics of BTC movement in the near future, but certain options exist.
First of all, it is worth considering the probable causes of the stock market crash to predict bitcoin's further movement. Prerequisites for a likely bubble existed in the altcoin market, and analysts from JPMorgan admitted it. Moreover, there was a peculiar correlation of all deflationary assets. The consolidation of the dollar by 0.2% against major reserve currencies contributed to this fact. These two major factors triggered a sales spiral in the market, which continued to knock investors out and further caused panic among the retail audience. The fall was also exacerbated by a large percentage of algorithms that either joined the fall or took profits, putting pressure on coin prices.
As a result, bitcoin plunged 16% and hit a local low, after which it managed to rebound to the support zone at $46,000. The most likely scenario for further bitcoin movement is local sideways, further consolidation, accumulation and resumption of upward movement. The period of sideways movement may last from one to several weeks. This is due to the fact that retailers left the market en masse during the crash, leaving behind a strong pressure on the price. At the same time, the whales took the fall of the price calmly, but they will need some time to buy back the available volumes. This is also evidenced by the technical indicators of the coin on the daily chart. The RSI index is moving along the 40 mark, the stochastic has managed to move sideways and the MACD is showing some weakening, which will be leveled out by the gradual buying of the offered volumes.
Besides, the future of bitcoin may be influenced by the next US Federal Reserve meeting. The regulator is not planning to raise the key rate, but may provide some theses. The cryptocurrency market was half a step away from launching a full-fledged bullish trend. The major coins were climbing or already settled above the final resistance points, but due to a series of factors there was a powerful slump of more than $300 million. The main cryptocurrency made the biggest loss. It leveled all the recent week's achievements and on September 10 was again near $46,00. It is extremely difficult to trace the exact dynamics of BTC movement in the near future, but certain variants exist.
The danger of this variant lies in the retail audience's reaction. Social activity and appeals to buy bitcoins at the bottom continue to gain popularity, which may cause big problems for retailers. If the trend continues and trading volumes start rising, the whales may locally change strategy and try to play the downside. This would set the market back a few more weeks. Moreover, the next Federal Reserve meeting may affect the future of bitcoin. The regulator is not planning to raise the key rate, but may provide some theses about the tightening of monetary policy. This news is likely to have a positive effect on the cryptocurrency market. Inflation continues to rise, and it will be highly profitable for BTC. These two factors can give an advantage to bitcoin quotes, as well they may result in a loss.
If we assess the situation in detail, the coin in the near future may test two important resistance zones. The first one is located at $46,500, which is the intraday resistance threshold. With its bullish breakdown, the asset will move further to $48,000. At the weekend, the market pressure will weaken and the bulls have a chance to reach $50,000. This level is still considered the key zone, after which the bullish trend will intensify. By leaving the $50,000-$52,000 range, bitcoin will continue moving towards $58,000, where the next important stop will be the all-time high.
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