Market picture

Pressure on the crypto market returned on Tuesday and intensified on Wednesday morning, with capitalisation falling 4.8% to $1.98 trillion. This is below the psychological support line that attracted buyers for most of August and is the lowest level since August 8th. The nature of the decline early in the day suggests another wave of stop orders during a period of reduced liquidity, so it is too early to say that the $2 trillion support has been breached.

On Tuesday, bitcoin sellers took the initiative first on the approach to $60K and then at $59K, supported by the growing sell-off in traditional markets. Bitcoin fell to $55.5K at the peak of the decline before stabilising at $56.4K. Current levels acted as support during the May and July declines, but the trend of lower local lows sets up a reversal at $54K at the earliest.

Like other altcoins, Ethereum's local high was on August 24th, two days before Bitcoin reversed and interrupted a corrective rebound. Technically, a retest of the August 5th lows around $2100 is now more likely.