Experts analyzed the situation on the market and explained how it could change in the coming week.

The past week on the cryptocurrency market turned out to be quite turbulent for Bitcoin and the entire crypto market as a whole. BTC traded in a wide range from $57,701 to $64,481, demonstrating high volatility. By the end of the week, Bitcoin had lost all of the previous week’s gains, falling 8.32% to $58,878. Ethereum (ETH) also showed an 8.39% decline in less than a week, falling to $2,516. Investors have still not recovered from the market crash of August 5, which continues to put pressure on the mood of trading participants.

The reasons for this decline were large sales of bitcoin by whales, the transfer of 2,300 BTC (about $141.81 million) to the Kraken exchange, as well as expectations of important financial reports, in particular, the Nvidia income report and data on expenses and income in the US. In addition, the market responded to large payments to creditors of the bankrupt crypto platform Celsius in the amount of about $2.5 billion.

From a technical analysis perspective, the market is at a crossroads. A price fixation below $57,500 could lead to a collapse to $52,000. The target corresponds to the bearish engulfing candlestick setup on the weekly chart if it is fully formed at the close of trading on Sunday. On the other hand, holding the price above $58,500 followed by a recovery above $61,500 from September 4 would refute the bearish scenario and open the way to growth to $66,400. Investors were closely monitoring macroeconomic indicators and news, trying to assess the prospects for further movement of BTC. Despite the current correction, many experienced market participants viewed this decline as an opportunity to replenish their positions at a more favorable price.

Important events in September:

  • September 11 - publication of the US consumer price index for August.

  • September 18 - US Federal Reserve meeting on the key rate.

  • September 29 - release from prison of the former head of the very reputationally damaged Binance, Changpeng Zhao.