With a certain degree of pressure on various cryptocurrencies, current market trends seem to indicate the dominance of the US dollar index. BTC, priced at $26,358, experienced a downward slip on September 24th, hinting at the bearish grip over the market, with attempts to lower the prices further. There is, however, a strong resistance from the bulls to defend the price and attain a positive monthly close for Bitcoin in September. Despite holding historical weight as a favorable month for buyers, it would be challenging to uphold the momentum if macroeconomic headwinds linger.
The principal risk to the cryptocurrency recovery appears to emanate from the enduring US dollar strength which has soared for ten consecutive weeks. Further, the formation of the golden cross in the US dollar index suggests plausible upside in the near term. So the prevailing uncertainty among the crypto enthusiasts revolves around whether the robust dollar will maintain its gains or experience a short-term correction.
Among Ethereum, ETH at $1,593 seems to be sluggishly slipping toward the pivotal level at $1,531, suggesting a brittle buying support from the bulls. The downward sloping moving averages hint at an advantage to the sellers, yet signs of forming a bullish divergence in the RSI suggest a possible reduction in selling pressure.
Another player in the arena, Cardano ADA, dropped to a critical support level on Sep. 25, indicating the pressure from the bears. However, there’s a glimmering advantage for the bulls: the RSI is forming a bullish divergence. For a decrease in the risk of a breakdown, the bulls must quickly thrust the ADA/USDT pair above the downtrend line.
The sparkling contenders – XRP, DOGE, TON, and SOL – also illustrate a similar pattern of grappling between the bulls and bears with variable support and resistance levels.
However, an air of skepticism concerning the future of the cryptocurrency market persists as it continuously mirrors the underlying macroeconomic factors, especially the US dollar index’s strength, and global economic health.
Controversy has also surrounded the Mixin Network, a Hong-Kong based decentralized cross-chain transfer protocol, after it suffered a significant security breach. Despite the founder, Xiaodong Feng, outlining a compensation plan, he restricted it to reimbursing up to 50% of the user’s assets for now. The incident not only stoked concerns about the security of funds in cryptocurrencies but also reflected on the vulnerability of these platforms to hackers.
The rapid evolution of the cryptocurrency industry, marked by significant technological advancements, new entrants and the regulatory landscape makes it essential for investors to stay abreast of market trends, and understand the associated risks and opportunities. As always, the wise stands clear – constant vigilance – whether you are a bullish enthusiast or a bearish sceptic.
Source: Cointelegraph
