The cryptocurrency markets are in an interesting position as cries for altcoin season start to increase across the crypto sphere. As Bitcoin starts to show signs of weakness, many altcoin holders are starting to wonder if its time for the elusive “altcoin season” to begin. Over the past few days, we have seen many major cryptocurrencies increase by over 8% against BTC including ETH and EOS.

At the same time, Bitcoin has started to show a small sign of weakness at it heads toward the $10,000 level once again. The cryptocurrency still remains in a long consolidation pattern with strong support at the lower boundary dictating whether Bitcoin will turn bearish over the following few months.





The total market capitalization has started the month of September on the strong footing after being able to climb from the low of $247 billion in August to where it currently sits at $263 billion. If altcoins can continue to climb against BTC we could see this total market cap remain stable - even if Bitcoin continues to fall beneath $10,000.

Bitcoin - A Game Of Triangles - Again!

What Has Been Going On?

Bitcoin continues to trade within the consolidation pattern that has been in play since June this year. The descending triangle continues to remain in-tact as Bitcoin continues to trade within the confines of the pattern towards the apex. Typically, triangles will break before they reach the apex which is why many traders are expecting a breakout pretty soon. The direction in which the breakout will be is still yet unknown. Bitcoin could easily be supported at the lower boundary of the triangle at $9,400 which would allow a rebound higher and a breakout toward the upside. On the other hand, Bitcoin could easily just smash beneath the base of the triangle which would result in a breakdown toward the $6,100 level.

The RSI is currently trading directly along with the 50 level which shows major indecision within the market. If the RSI drops beneath 50, we can certainly expect Bitcoin to continue to head lower toward the lower boundary of the pattern.

Where Can We Go From Here?

If the sellers continue to increase the pressure and push lower, we can expect immediate support to be located at $10,052 and $10,000. Beneath this, support is then located at $9,768 (which is also bolstered by the 100 day EMA), $9,679, $9,500, and then at the lower boundary of the triangle at $9,400.

If the selling momentum proves to push Bitcoin beneath the pattern, we can expect immediate support below to be located at $9,200, $9,000, $8,733, $8,700 (200-days EMA), $8,500 and $8,234 (.886 Fibonacci Retracement)

What If The Bulls Regain Control?

Alternatively, if the bulls do regain control at $10,000 we can expect higher resistance to be located at $10,200, $10,400, $$10,582 and then the upper boundary of the descending triangle. Above the triangle, resistance can be found at $10,800, $11,000, $11,200, $11,500, $11,821 and $12,000.

Ethereum - Time To Recover Against BTC?







What Has Been Going On?

Against the USD, Ethereum has remained pretty stable over the past week after remaining around the $180 level. Ethereum remains ranked as the second-largest cryptocurrency with a total market cap valuation of $19.42 billion. The cryptocurrency has been suffering heavily after dropping by over 30% throughout the past 3 months but it is starting to show signs that it may be ready to recover. This is largely due to the fact that Ethereum is showing strong signs that is ready to recover against BTC after increasing by over 8% over the past few days. We still need to wait for ETH to break above 0.002 BTC to confirm that this is not just a relief rally.

Currently, Ethereum is facing resistance at $180 and the momentum is still in the favor of the sellers are the RSI remains beneath the 50 level. However, the $168 support level looks fairly strong moving forward - if Ethereum breaks beneath this we could consider that the market is bearish once again.

Where Can We Go From Here?

If the bulls do continue to push ETH/BTC higher and Bitcoin can remain fairly stable within the current consolidation pattern, we could see Ethereum heading well above the $200 level. If they can break above the current resistance, we can expect higher resistance to be located at $195 and $200. Above $200, there is a lot of congestion at the $210 - $213 area which is provided by the 100-days EMA and 200-days EMA converging on this location. If ETH can break above this area of congestion, resistance is then expected at the bearish .382 and .5 Fibonacci Retracement levels (drawn in red) priced at $225 and $242.

If the buyers can continue to climb above $250, resistance is then to be expected at $259, $284, $294 and, $300. For a strong bullish push to begin, we would need to see the RSI breaking above the 50 level to show that the bulls are in charge of the market momentum. The RSI has not been in the bullish favor since early July and this will be one of the first indicators to prove that Etheruem is ready to start recovering.

One interesting piece of data I have managed to run across is the Exchange Flow Balance Metric that Santiment provides.



We can see that the Exchange Flow Balance has recently slipped into the negative value which shows more coins are moving away from exchanges than entering. This could potentially mean that traders are starting to show signs that they are ready to stop selling their coins and start HODLing again if they start to feel like ETH is ready to recover against BTC. This will be an important metric I will be watching over the next few weeks and I will keep you updated on how this develops!

Overall, ETH seems to be in an interesting position because if ETH/BTC can climb above 0.002 BTC, we could see a resurgence in the market. This will certainly spill over into the other altcoin markets and could be a strong catalyst to spark altseason!

Ripple - Fairly Stable At $0.25



What Has Been Going On?

XRP has struggled this month after dropping by 15% over the past 30 days. XRP is currently still ranked in the third position with a total market cap valuation of $11.17 billion.

During August we saw XRP breaking beneath the year-long support at the $0.30 level. Many traders were expecting $0.30 to hold strong but XRP collapsed below and continued to trade further lower until finding support at the downside 1.414 Fibonacci Extension level (drawn in pink) priced at $0.2524. After reaching this level of support we can see XRP has attempted to rebound higher but has not been able to continue higher above the $0.26 resistance level.

The RSI is well beneath the 50 level which shows that the sellers are still in complete control over the momentum. However, if altseason does kick-off, we would expect this to reverse pretty quickly!

Where Can We Go From Here?

If the sellers do start to push the market lower, we can expect immediate support to be located at the $0.2524 support level. Beneath this, support can then be expected at the short term downside 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $0.2474 and $0.2388. If the selling continues further beneath this, support can then be found at $0.23 and $0.2265.

Alternatively, if the buyers can start to push XRP above the $0.26 resistance level, higher resistance will then be found at $0.28, $0.285, $0.29 and then at $0.30. The resistance at $0.30 will prove difficult to overcome as it had previously provided so much support. If the bulls can climb above $0.30, resistance is then expected at $0.31 (also contains 100-days EMA), $0.32 and $0.24 (200-days EMA).





Litecoin - Already starting To move



What Has Been Going On?

Out of all of the coins on this list, Litecoin is the one that has started to move. LTC has increased by 4% over the past 7 days as it has managed to climb back above the $70 level today. The cryptocurrency has seen an 18% price drop over the past month but is already moving to regain some of these losses.

The RSI has now re-approached the 50 level which shows that the selling momentum has faded and that the market is now in a state of indecision moving forward.

Where Can We Go From Here?

If the bulls can continue to push higher and the RSI breaks above the 50 level, we can expect Litecoin to continue to make its way toward the $100 level. It will first encounter resistance at $82 and $85. This area of resistance is provided by both the 100-days and 200-days EMA converging at this location. Above this, resistance is then located at $93.77, $100, and $103.

If the buyers can continue to power above $103, resistance is then located at $112, $120 and $125.

Alternatively, if the sellers regroup and start to push the market lower, we can expect immediate support to be located at $67 and $65. A break beneath $65 would shift the trend into a bearish one and we can then expect support to be located at $60, $58, $55 and $48.

So there you have it! Altseason REALLY could be upon us but we need to be patient and see if the major altcoins can continue to make some small gains against BTC. If ETH can break above 0.002 BTC, we could be seeing a strong resurgence within the industry.

Adios!