Crypto Market Review, September 8

Despite the rally the cryptocurrency market saw yesterday, the sentiment of traders and investors remains close to extreme fear as the correction in the market does not seem to be over. Certain cryptocurrencies, such as Cardano, still manage to show a positive dynamic despite the chaos around them.

Cardano’s breakthrough remains successful

On September 4, ADA finally broke through the local resistance level on the ADA/BTC pair, marking a potential reversal against the first cryptocurrency. The breakthrough of the ascending triangle was a mandatory condition for continuing ADA’s growth in the market.

In addition to breaking through the pattern’s resistance level, Cardano has also moved past the 200- and 50-day moving averages that usually act as a strong barrier for any assets in a downtrend.

If ADA maintains the same growth rate for a few more days, the market will most likely see the appearance of an important bullish signal – the crossing of the 200- and 50-day moving averages, one of the strongest reversal signals for any kind of asset.

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Considering the lack of growth factors for Bitcoin and the waning dominance of the digital gold, Cardano may actually rally further against Bitcoin without the general recovery of the cryptocurrency market.

Among USD pairs, ADA does not show a similar price performance as against Bitcoin. Over the past 100 days, the price of Ethereum’s rival has stagnated, adding only around 4% to its value since the beginning of this summer.

The low volatility of Cardano can also be considered a consolidation ahead of the reversal, considering that ADA bottomed from a technical point of view without any lower lows or lower highs appearing on the chart in the last three months.

Reversal may be near

According to the extreme increase in hedging volume in the financial markets, most investors and traders are bracing for another fall in the markets, similar to what we saw back in 2008.

The rising open interest on put options is a leading indicator for the market that usually leads to a reversal. Despite the exponential increase in the total market capitalization of the financial markets, the $8.1 billion increase in volume is still significant and should be treated seriously.

Bitcoin, on the other hand, is still trading around 2022 lows with only a 6% recovery since the beginning of the summer, when the first cryptocurrency fell below the 2017 ATH, which was previously considered impossible after institutions pushed the price of BTC to almost 70,000 dollars. .

Over the next few weeks, the cryptocurrency market is bracing for an increase in volatility thanks to the FOMC meeting and the CPI data release. Both factors will most likely cause a storm in the industry even without the help of the Ethereum Merge that will happen around September 13th.

At press time, Bitcoin is trading at $19,180, showing a price increase of 0.5% in the last 24 hours.