Correction or pause before a new upward trend?

Fundamental data

Following the slight correction in US equities also crypto markets started to break lower. Led by Bitcoin, also most altcoins broke out of their recent uptrend, starting to show signs of a potential bigger correction in markets. If the Nasdaq index in the US will push lower, also the crypto market should be expected to weaken further. Vice versa, if US indices push higher, the recent correction might be used by many to get access to markets with cheaper prices.

On another note, new studies show that the price of Bitcoin has been four to five times riskier in terms of volatility than the S&P 500 index. This indicates the chance that the market rises or falls, compared to the stock index. Yet, the number is falling. Recent measures of realized volatility have been falling and some market observes compare the moves to Gold. Prices of the shining metal have been extremely volatile about 40 years before it has been seen as a stable

Technical analysis:

– BTC: Bitcoin is trading at USD 109,511. As the market shows, prices have been falling recently but managed to stay on top of the USD 108,000 technical support zone. If Bitcoin now falls below that level, the correction might extend some momentum and proceed towards the 50- moving average trend, which currently sits at USD 97,720.

BTCUSD, weekly chart

While a correction to that level does not necessarily cause the uptrend to break, the volatile move might have a bigger impact on altcoins, which might extend their current slide in prices.

A break above the USD 115,000 level might indicate that the positive trend will resume fresh momentum.

– ETH: Ethereum is currently trading at USD 3,993. Despite having tested a new all- time- high last month the correction in this token looks strong. It will be important to see, if the market can remain on top of the big support level, which sits at USD 3,900.

ETHUSD, monthly chart

The monthly chart above shows, that the strong push to the upside after the break of the 50- moving average released positive sentiment. Only a break of the given support level would cause the momentum to fade. Still, a break of the USD 4,800 price level is needed now to cause the upside being resumed.

– XRP: XRP is currently trading at USD 2.7785. What previously looked extremely positive is now potentially offering more downside momentum. The market started extremely strong this year after Trump taking over Oval Office but had recently lost some momentum.

XRPUSD, monthly chart

The candlestick pattern on the monthly chart above shows, that the price has been fading rather indicating weaker momentum. Especially the last trading days in September might now show, that the highs at around the USD 3.1700 will not be regained again. The market might rather push lower towards the USD 2.3000 area, where support could be found.

– SOL: Solana is currently trading at USD 200.63. Last week caused the sentiment in the market to change with prices falling back sharply. Should the USD 200.00 level hold, more upside might now be seen. Yet, in order to resume sharp momentum, a push beyond the recent highs is needed.

SOLUSD, weekly chart

Vice versa, the price currently rather looks like it will move lower, in particular if the Nasdaq continues to decline. Then the token might retest the next support at USD 172.85, where the 50- moving average comes into play.