Crypto Price Analysis 8-28 BTC, ETH, SOL, DOGE, TAO, FET, MATIC

As a seasoned crypto trader with years of experience navigating the volatile waters of the digital asset market, I find myself intrigued by the current state of play for TAO, FET, and MATIC.

In just an hour, major digital currencies like Bitcoin (BTC) and Ethereum (ETH) experienced a substantial dip following the liquidation of long positions worth approximately $170 million. Data from CoinGlass reveals this event. Investors who had wagered on the escalating prices of these cryptocurrencies suffered losses as a result.

1. In the recent liquidations, Bitcoin (BTC) and Ethereum (ETH) investors led the way, with $65 million and $52 million in long positions being closed out for BTC and ETH respectively. Late on Tuesday, BTC fell below $60,000 and has since dropped by 6% over the past day. Similarly, ETH plunged under the significant $2,500 mark, losing over 8% in the same period. Additionally, other cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Toncoin (TON), and Polkadot (DOT) experienced substantial declines as well.

Bitcoin (BTC), Ethereum (ETH) Register Sharp Drops

On Friday, Bitcoin (BTC) surpassed $63,000 due to rumors that Federal Reserve Chair Jerome Powell was considering a reduction in interest rates next month. This boost also lifted the prices of other cryptocurrencies. However, the market’s excitement quickly faded as liquidations took place, creating a somber atmosphere. Meanwhile, traditional stock markets generally stayed steady for the day, with analysts unable to identify any particular reason for the decline.

Some experts suggest that the current fluctuations in Bitcoin’s price may have reached a balance, potentially signaling an upcoming phase of increased volatility, according to CoinGlass. Contrarily, Fairland Strategies predict a challenging September for Bitcoin, citing various indicators hinting at potential vulnerability. In its report, Fairland Strategies expresses this forecast.

During September, we’re moving into a time when risk assets tend to perform poorly. This weakness often affects the most volatile assets the most, although the impact is usually temporary. Currently, there are hints of a slowdown in upward momentum according to DeMARK Indicators, and once the daily stochastics dip below 80%, it could indicate a higher likelihood that the support level ($56,500) might be revisited.

BTC And ETH Lead Liquidations

On Tuesday, the cryptocurrency markets experienced approximately $313 million in market closures as Bitcoin (BTC) fell below $60,000. The majority of these closures, accounting for around 90%, or $282 million, affected long traders. This is a substantial increase compared to the $31 million in short liquidations. Liquidations related to Ethereum (ETH) were the most significant, totaling over $100 million, with the majority of these, approximately $93.5 million, coming from long positions. As a consequence, ETH dipped below the critical $2,500 price point and has yet to rebound. Bitcoin followed closely behind with over $94 million in liquidations, and its open interest also saw a notable decrease. Open interest signifies the total number of unresolved long and short positions within the market. A drop in open interest suggests an increase in liquidations or caution among traders.

Trends Suggest Difficult September For BTC

Looking back at Bitcoin’s (BTC) performance in September over the past 11 years, it hasn’t been particularly favorable. In fact, BTC has ended lower nine out of eleven times during this month, even during bullish periods like 2013, 2017, and 2021. But with the upcoming US election serving as a possible catalyst, there’s hope that Bitcoin could buck this trend in 2021.

It’s widely speculated that the outcome of the U.S. election could influence Bitcoin’s price. Additionally, a potential factor boosting its value is the suggestion made by the Federal Reserve about a possible interest rate reduction in September. As for the future, historically, October has been a robust month for Bitcoin, with prices increasing in nine out of the past eleven years.

Bitcoin (BTC) Price Analysis

On Tuesday evening, Bitcoin (BTC) experienced a surge of sell-offs, causing a significant decrease in its value. This was detrimental to traders who had wagered that BTC’s price would rise post the Federal Reserve’s announcement of a rate reduction in September. Nevertheless, these sell-offs have diminished the enthusiasm for BTC, resulting in a 6% drop over the past day. Consequently, the price has fallen below the significant $60,000 mark yet again, as buyers find it challenging to gain traction.

Looking at the graph, Bitcoin (BTC) was on an uptrend as the week ended, gaining 3.50% on Wednesday only to experience a minor dip of about 1% on Thursday due to the influence of the 50-day Simple Moving Average (SMA), which allowed sellers to temporarily push BTC down. However, Friday saw bulls regaining control as BTC surged by 5.97%, breaking through both the 50-day and 200-day SMAs to reach $64,032. The day’s high was even higher at $65,054, but sellers managed to pull the price back below $65,000 – a level they were anticipated to protect strongly.

The weekend saw buyers and sellers struggle to take control, with BTC only managing a marginal increase on Saturday. Sunday saw buyers attempt another push towards $65,000 while sellers tried to drive the price below the 200-day SMA. However, neither could establish control, and BTC remained at $64,085. The current week began with BTC dipping below the 200-day SMA after a 1.85% drop as sellers tightened their grip on the market. As a result, BTC dropped to $62,903. Bearish sentiment intensified on Tuesday as markets crashed, with BTC dropping by 5.40% to slip below the 50 and 20-day SMAs and the $60,000 price level to $59,506. The current session sees BTC remain in the red, down by 0.50%, as sellers look to drive the price lower.

As a crypto investor, I’ve noticed that Tuesday’s reversal has given sellers the upper hand in the market, making it unlikely we’ll see any significant moves above $64,000 at this time. Given September’s historical challenges for BTC, a further drop could occur if sellers maintain their control. In an effort to regroup and reclaim the crucial $60,000 level, buyers will try to push back against the moving averages and work their way towards $64,000 again. However, if sellers continue to hold sway, we might see BTC dip down to the $58,000 support level.

Ethereum (ETH) Price Analysis

Overnight, the crypto market took a steep dive, causing Ethereum (ETH) to plunge below the vital $2,500 threshold, dampening expectations for reaching the $2,850 resistance point. The broader crypto market has seen a decline of nearly 8% since the start of the week, with key cryptocurrencies enduring their third straight day in the red. Ethereum alone recorded approximately $100 million in liquidations, resulting in a near 9% drop over the past 24 hours, undoing the progress made on Friday.

ETH had jumped by 5.36% after pushing above the 20-day SMA as buyers successfully broke above the $2,700 price level despite strong selling pressure. Sellers attempted to regain control on Saturday, pushing ETH down from its day high of $2,820. However, buyers prevented a drop below $2,700, with ETH instead registering a marginal increase to end the day at $2,769. Sellers took control of the market on Sunday, pushing ETH down by 0.75% to $2,749.

On Monday, there was an increase in pessimistic feelings towards Ethereum (ETH) as it dropped below the $2,700 mark by 2.42%, reaching $2,682. A steep decline on Tuesday night drove ETH even lower, falling beneath its 20-day Simple Moving Average (SMA) and the significant support level of $2,500, with a plunge of over 8% to $2,458. Sellers managed to push ETH down to an intraday low of $2,397, but buyers stepped in to lift it back up to $2,458. At present, the session is showing a slight decrease for ETH as sellers aim to further lower the price and buyers try to regain the $2,500 level. Since the market crash on August 5, Ethereum has had difficulty rebounding and now finds itself at a critical point.

Should sellers maintain dominance and continue to drive down Ethereum, there’s a possibility it might dip towards the $2,200 support point. For the market to recover and stop any further fall, buyers need to reassert control over the $2,500 mark.

Solana (SOL) Price Analysis

Solana (SOL) followed the market trend during the week, recording losses and falling below $150 and its moving averages. However, things turned around for SOL towards the end of the week, as it surged over 7% on Friday, moving above the 20-day and 200-day simple moving averages (SMAs) and reclaiming the important $150 price level to close at $153. The positive momentum continued for SOL on Saturday, with it rising by nearly 5% to go over $160 and settling at $160.78. However, sellers regained control on Sunday, pushing SOL back below $160 to close the day at $159.10.

Buyers attempted a recovery on Monday, as SOL rose to a day high of $162. Despite starting strongly, SOL lost steam at higher levels as sellers took control and pushed the price down by 1.18% to $157.22. The price remained bearish on Tuesday, dropping below $150 and the moving averages after a 6.55% drop and settling at $146.92. The current session sees SOL remain in the red, down by 1.35% and trading around the $144 mark. So, where does SOL go from here? Sellers will look to drive the price below $140. Should this happen, it would indicate that sellers have established control in the market. On their part, buyers will look to defend the lower levels and reclaim $150 to resume the push to $160.

Dogecoin (DOGE) Price Analysis

Dogecoin (DOGE) experienced a downturn along with other markets last week, erasing the gains it had made earlier. This decline was fueled by bears who pushed the price below the significant support level of $0.100. After reaching $0.112 on Friday following a 6.52% surge, DOGE’s momentum faltered. The price was turned away at the 50-day Simple Moving Average (SMA), resulting in a slight drop on Saturday. On Sunday, DOGE continued to exhibit bearish tendencies, falling by 2.41%, ending the day at $0.109. As the new week started, bearish feelings grew stronger, causing DOGE to plummet nearly 4% to reach $0.105.

On Tuesday night, a significant fall occurred, causing DOGE to plummet due to breaking the $0.100 support level, reaching $0.098 following a nearly 6% decrease. At present, DOGE is experiencing a slight uptick as investors try to recover the $0.100 support level. If successful, DOGE might initially surge toward $0.105, where its 20-day Simple Moving Average could serve as resistance. Overcoming this barrier will prompt further efforts from buyers to recoup $0.110. On the other hand, if the overall sentiment remains negative, DOGE may dip down to $0.095 or even as low as $0.090.

Bittensor (TAO) Price Analysis

The interest in AI-related assets has been climbing steadily, driven by investors eagerly awaiting Nvidia’s earnings announcement due this week. One such asset is TAO, which had shown a positive trend until the weekend. Remarkably, on Thursday and Friday, TAO saw impressive gains of 7.89% and 8.08%, respectively, pushing its price near $350. However, sellers were active at this level, causing TAO to dip slightly on Saturday, dropping by about 2% to $338. Yet, it swiftly bounced back, registering a 3.13% increase on Sunday amidst intense selling pressure and volatile market conditions as sellers tried to push the price down.

This week’s trading started with TAO at a decrease, down 3.34% to $337. On Tuesday, buyers made an effort to lift TAO above $350, reaching a peak of $364. However, as the broader crypto market declined, TAO followed suit, dropping by 7.23% to $313. It dipped to a low of $303 but rebounded from its moving averages to settle at $313. Currently, both buyers and sellers are competing for control. Sellers tried to push TAO below its moving averages and $300, but with significant buying interest at lower levels, TAO has recovered to its current price of $312. If the buyers maintain their position, there’s potential for the price to rise back towards $350.

FET Price Analysis

Over the past seven days, I’ve observed a remarkable 40% jump in the value of FET, propelling it beyond the $1 mark and peaking at $1.35 on Sunday. However, this upward trend seems to have slowed down this week, with sellers taking control since Monday, causing the price to drop progressively. Meanwhile, potential buyers are finding it challenging to assert themselves in the current market session. Interestingly, FET has shown a bullish inclination since August 19, recording an impressive 18.73% increase on Friday, which pushed it above the 50-day Simple Moving Average (SMA) and settled it at $1.20. The bullish sentiment continued over the weekend, with FET registering a 4.98% rise on Saturday and an even more substantial increase of 7.74% on Sunday, settling at $1.36 by the end of the day.

On Sunday, FET experienced significant volatility as sellers tried to drive the price down to $1.10, a move that buyers successfully countered. Despite concluding the weekend with a strong upward trend, FET dipped into the negative territory on Monday, decreasing by 2.12% to $1.33. On Tuesday, buyers made an effort to recuperate, pushing FET to its daily high of $1.47, but their momentum waned, allowing sellers to pull the price back down. As a result, FET dropped by 3.59% to $1.28, with sellers maintaining control. In the current trading session, both buyers and sellers are competing for dominance. FET plummeted to its daily low of $1.18 but has since rebounded due to modest demand and is now being traded at $1.28.

Should sellers maintain dominance in the current market trend, they might endeavor to push FET’s value up towards $1.10. Conversely, it is anticipated that buyers will try to hold this level firm, and the price may bounce back from the 50-day Simple Moving Average (SMA). If the buyers regain control, there might be another attempt for FET to reach $1.50.

Polygon (MATIC) Price Analysis

Over the past day, Polygon (MATIC) has fallen by nearly 12%, diving under important support points and sliding beneath both its 20-day and 50-day moving averages. MATIC had been quite active in the bullish direction during the previous week, breaking through the $0.55 resistance level on Saturday, reaching $0.57 following a 6.12% growth spurt. However, the buying momentum began to fade as selling pressure escalated at higher levels, leading to an 8% drop in MATIC’s price on Sunday, pushing it back below $0.55 and settling at $0.52.

On Monday, MATIC continued its downtrend, marking the beginning of the week with a bearish stance following a 4.19% decrease and ending at $0.50. As the crypto market experienced a significant dip late on Tuesday, MATIC plummeted by more than 7% on Wednesday, falling below the 50-day Simple Moving Average (SMA) and an essential support level to close at $0.46. Currently, the price is dropping further by 3.43%, now below the 20-day SMA. If the bearish trend persists, there’s a possibility that sellers may push the price down to $0.40, a support level that buyers are anticipated to protect. A potential rebound from this point could initiate a recovery rally, potentially pushing MATIC back up to $0.50.

2024-08-28 13:28