Investors are cautious because the crypto correction emerges

based on the historical underperformance that traditionally experienced the US stock markets in September, the ninth month of the year was not a good month. From maximum to low, the value recorded a decline of more than 5 %in September; Meanwhile, the broad market capitalization of crypto recorded a decline of around 25 %.

reached its maximum on September 7 with over 52,000 US dollars and has since reached two gradually lower highs on the daily and daily time frame. This price campaign brought the number one cryptocurrency under the sliding 200-day average and briefly below the sliding 20-week average (currently at around $ 40,800 and steadily falling).

BTC/USD weekly courses.

If there is no breakthrough over 52,000 in the last week of September (which would represent a local higher high), retailers who hope for a final test and keeping this historically decisive average must probably wait a little longer.

This is because the bulls appeared at the beginning of last week to defend the level of $ 40,000, which led to a weekly candle with a long lower wick and a final course of at least USD 3,000 over the current gliding average.

While the defense of $ 40,000 is undoubtedly Bullisch, it will leave the door open for a further retreat test of the sliding 20-week average in the coming weeks.

Technically, the picture looks a bit Bearish. The longer time frames all indicate that Bitcoin may have reached its maximum in April of this year, with the increase in September to 52,000 as the next weekly low in a series of them on their way down.

The following one or two weeks will probably also lead to the gliding 20-week average crosses the 50-week average in a downward direction. Most recently, this was the case in February 2020.

The latest headlines have also given the price a significantly bearish tendency. China's crypto-compensation picks up speed and the US regulators send mixed signals. Both seem to be striving to intensify their review of the entire crypto room, however, offer little definitive indications of what the regulatory landscape could look like in the next twelve to eighteen months.

without Bitcoin

If we exclude the oversized effect of Bitcoin onto the market, we get a slightly different, albeit pessimistic image. When looking at the weekly chart of the entire crypto market capitalization without Bitcoin, we observe a double-top formation instead of the all-time high from April and the lowest high in September, as described above.

This is due to the oversized influence of ether on this second width of crypto measure if Bitcoin is removed from the picture. The market capitalization of crypto, without Bitcoin, seems to be almost identical to the chart, which in May reached an all-time weekly high at $ 3888 and was rejected by this level at the end of August. If this turns out to be a double-top formation, we can expect the second largest cryptocurrency in the world to withdraw and test from here from $ 1,900 again.

ETH/USD weekly prea

Except Bitcoin and Ether

In fact, the only slightly interest bullish charts in the room can currently be found in the smaller "old coins", many of which have reached new record heights in the past few weeks, although both Bitcoin and ether have failed to do so.

Ada/USD weekly chart.

currently the third largest cryptocurrency after market capitalization was a remarkable example of this. In May it reached an all-time high a week at around $ 2.33 and broke over this level at the end of August and reached a new record week of almost $ 3. This is a good sign.

Ada, Cardano's state currency, certainly asserted itself better than many of his competitors during the recent decline in market. It is not representative of the entire old coin room. If you look at the market capitalization of crypto without Bitcoin and ether, we see a double-top formation similar to those observed on the ether and the overall market capitalization without Bitcoin.

The third chart below is a little more buller than the first or second. In August he reached a slightly higher high above the weekly high from May, but without the previously convincing interest bully momentum that investors would look into a blue sky.

Feeling and last thoughts

Despite all of this, the mood in the room remains optimistic, with a general acceptance of the view that the cryptoma market is currently in the capitulation phase of a correction in the middle of the cycle and that for many crypto-assets new highs are imminent if we get closer by the end of the year.

The chartists among us remain on the highest alert, since the mood usually becomes the last bear when the long-term trends change the direction. This is the main reason that so many investors keep the bag in a market long after reaching the tip. Caution is advised, and the final course from last Sunday should not be regarded as a definitive test and holding the sliding 20-week average.

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