The market mover of the week was Tuesday’s US inflation data, namely the US consumer price index (CPI) for August.
The figure caused a sudden sell-off on all markets with the losses on shares which stood at between 3% and 5% on Tuesday evening.
This resulted in a very wide bar also on cryptocurrencies and in particular on Bitcoin which fell from $ 22,300 maximum to $ 19,880 minimum, closing at 22,200, price at which it is still currently.
The week for Bitcoin, however, ends positively given the lows made last week in the $ 18,500 area (green horizontal line on the graph), the last bastion before a real collapse, the resistance stands at $ 21,680 where the supertrend is stationary.
As for Ethereum, the merge scheduled for September 15th -which is today- is approaching. We will comment it extensively next week – one of the most important events of recent years in the blockchain sector and we will see the transition of Ethereum from the Proof-of-work network ( POW) to Proof-of-stake (POS) as a consensus algorithm.
There is great anticipation on the social channels and we will see how the market reacts.
Ethereum stands at $ 1,637, with a support in the $ 1,545 area and a resistance in the $ 1,750 area given by the supertrend.
Clearly, the fear remains on the markets especially in anticipation of the Federal Reserve meeting: the market expects a rise between 0.75% and 1%. Given the losses of the shares after Tuesday’s figure of 1.6 trillion dollars (4 times the capitalization of Bitcoin), it is expected that the reaction is less impulsive and less decisive in order to hope for a calm on the markets and cryptocurrencies.