Weekly Cryptocurrency Market Brief

After its recent climb to the upside, Bitcoin experienced a significant correction on Tuesday, September 7, 2021. Having seemingly settled above the $50-51k support zone and reaching as high as $52.9k, it fell heavily, reaching a low of $43k before settling in the $45-47.5k region.

There is work for the bulls to do to reclaim previous levels, as holding the $50-51k region as support would be key for a continuation of the bullish trend, as Bitcoin would have broken past the 61.8% (golden ratio) Fibonacci retracement level from its fall in May 2021, with its next target being the 78.6% Fibonacci level, which is sitting at around $58,000. Altcoins, of which many have been making spectacular gains in the current run, were also adversely affected in the midweek market correction.

Polygon (MATIC) corrected after having made massive gains over the past month, rallying from the lows of $0.62 on July 20 2021, and hitting $1.88 per token on September 5 2021. This marks a 200% gain in the past 45 days. Currently trading in the $1.3-1.4 region, MATIC would aim to break the resistance at $1.7 and continue its bullish trend to the upside, targeting the all-time highs reached on May 19, 2021, at over $2.9 per token.

Ethereum Classic (ETC) had also made significant gains over the past few weeks, prior to its midweek correction. Trading at around $37.5 on July 20 2021, the price experienced an impressive surge, hitting as high as $78 on August 15 2021, and since consolidating in the $55-76 zone. A break of the $80 resistance would pave the way for a move towards the all-time high of $185 per coin, reached on May 6, 2021, following a meteoric rise for the ETC price back then.

Theta (THETA) had increased by 140% over the past month and a half, moving from the lows of $3.5 per coin on July 20 2021, and reaching highs of $9.5 on September 6 2021, before its heavy correction to the $6 level the very next day. THETA needs to break past the $8.5 resistance level again before needing to surge past the $9.5-10 region, in order to continue its bullish movement towards the previous highs reached in May and June, as well as the all-time high reached on April 16 2021, at about $15.9 per coin.

(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.

ABX has received in-principle approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)

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