As a seasoned cryptocurrency trader with years of experience under my belt, I find myself constantly intrigued by the dynamic nature of this market. Let’s dive into these three coins – Dogecoin (DOGE), Dogwifhat (WIF), and SEI.
On Wednesday, cryptocurrency values stayed relatively low, mainly due to renewed worries about a potential U.S. economic deceleration and expectations for significant data releases that might influence the Federal Reserve’s choice regarding interest rates
As a researcher, I’ve noticed that Bitcoin (BTC) and Ethereum (ETH) dropped approximately 5% in value. However, they have shown signs of recovery since then. The Institute of Supply Management (ISM) data revealed that US manufacturing activity remained sluggish in August, suggesting an enduring weakness in the sector. Simultaneously, stocks, gold, and cryptocurrencies all plunged as assets began September on a rocky note, with investors anticipating the first interest rate reduction from the Fed
US Growth Worries Resurface
The ISM data shows that U.S manufacturing growth slowed in August, with the PMI rising slightly but still remaining below the 50 mark that typically indicates expansion, accounting for around 10% of the overall U.S economy. This slowdown has also caused a drop in the price of Bitcoin (BTC)
“The mood in digital currencies is influenced by the ISM Manufacturing PMI data, which reflects economic contraction. The relationship between traditional and digital markets is growing more obvious as traders revise their expectations based on Federal Reserve interest rate decisions. While digital currencies may show volatility, high trading activity suggests a possibility for recovery and growth.”
This week, several economic reports are scheduled for release, such as job openings, unemployment claims, and the significant Nonfarm Payrolls Report, which is due out on Friday. These reports will influence whether the anticipated Federal Reserve interest rate reduction will proceed as planned or turn out to be more substantial
“The value of Bitcoin has decreased due to heightened selling activity, mirroring drops in both American and Asian stock markets. As we await crucial U.S. economic data, investors are on high alert as this information might hint at a possible reduction in interest rates by the Federal Reserve. At present, the significant support for Bitcoin is around $56,350. If the downward trend continues, it could cause the price to drop further to approximately $53,500 soon.”
Jim Cramer Explains Crypto Decline
American TV personality Jim Cramer explained the recent crypto crash, which saw BTC tumble towards $55,000, stating that sector-focused sell-offs highlight the struggles within specific industries rather than a broader economic decline. According to Cramer, the sell-off is confined to AI, data, and computing sectors.
“This is not a general sale of all assets, but rather a specific sale involving technology related to Artificial Intelligence, data centers, computing, housing, oil, and certain companies that have been earmarked for infrastructure.”
Cramer’s analysis suggests that Nvidia’s stock dropped nearly 10% due to an ongoing antitrust investigation against the world’s largest chipmaker. This has led to a decrease in AI tokens and is causing uncertainty in the market. The markets are currently waiting for the release of the August non-farm payrolls, which are scheduled for Friday. Analysts believe these numbers will be higher than the previous 114,000. If the non-farm payroll data exceeds expectations, it could signal a stronger U.S job market and support potential interest rate cuts at the upcoming FOMC meeting
Bitcoin (BTC) Impacted By Weak Recovery
The value of Bitcoin (BTC) and Ether (ETH) in the market has dropped since September 3, and this trend is expected to continue until September 4. However, some analysts predict that a potential reduction in rates could be good for risky assets. On the other hand, Bitfinex analysts believe that Bitcoin’s value might drop by up to 20% due to these rate cuts. They also suggest that if this happens, Bitcoin’s price could range from $40,000 to $50,000
The instability and volatility in the cryptocurrency market are causing concerns due to recent declines. Specifically, the total market capitalization of these cryptos dropped significantly below $2 trillion, but then rebounded slightly after a 0.76% increase
Spot Bitcoin, Ethereum ETFs In The Red
Over the last few weeks, there’s been a significant shift in opinions about Bitcoin ETFs. Data suggests that for six straight days, these ETFs have experienced consistent outflows, suggesting that the current economic climate has influenced investors’ views on Bitcoin ETFs. Initially, investors poured in substantial amounts on August 23 and 26, but things soon shifted as funds were withdrawn. From August 27 to 30, only outflows were recorded for these ETFs. After the September 2 holiday, a wave of negative sentiment swept through, with approximately $300 million being withdrawn from the largest ETFs
In simpler terms, the demand for Ethereum ETFs has been decreasing since the start of September. Specifically, investors pulled out approximately $47.4 million on September 3 and about $37.5 million on September 4. This represents a significant withdrawal of funds from these ETFs over this period
Bitcoin (BTC) Price Analysis
Currently, Bitcoin (BTC) is finding it tough to stay above $57,000 as sellers aim to take control and potentially drop the price down to $55,000. The price has faced challenges since falling below its moving averages and entering September on a negative trend, with sellers trying to push BTC beneath important support levels. Since early September, Bitcoin has exhibited increased volatility, trading within the range of $55,000 and $60,000. As the weekend approached, BTC showed significant price fluctuations, reaching a low of $57,733 on Friday before buyers managed to push it back above $59,000
Over the weekend, Bitcoin (BTC) continued its downward trend, falling to $57,399 by Sunday, marking a 2.62% decrease. However, on Monday, BTC experienced a strong recovery, rising by 3.08% and surpassing $59,000 to settle at $59,169. Despite robust demand at lower prices, buyers have been unable to maintain momentum at higher levels, causing another dip in BTC’s value on Tuesday. After failing to break above the 20-day Simple Moving Average (SMA), BTC dropped nearly 3% and settled at $57,529. On Wednesday, Bitcoin saw significant selling pressure as markets plummeted, reaching a low of $55,658. Once again, demand at lower levels allowed buyers to regain control, pushing BTC towards $60,000. The price eventually stabilized at $58,017 after an increase of 0.85%
During this session, Bitcoin (BTC) is currently valued at around 1.50%. If sellers don’t drive it back up to approximately $57,000, buyers might start selling it down to around $49,000. Further drops could take the price to $42,000 or even lower. However, if bulls manage to prevent a drop below $57,000, the price could potentially rise to $60,000. If this outlook doesn’t hold true, the BTC value may fall towards the lower end of the range
Ethereum (ETH) Price Analysis
Currently, Ethereum (ETH) appears to be following a pattern of buying during price drops and selling during increases, resulting in a fluctuation between $2,300 and $2,600. Over the last couple of months, ETH has faced difficulties and shown few indications of an upcoming recovery. At the start of August, ETH dropped below its 200-day Simple Moving Average (SMA), reaching a low of $2,131. Since then, it has moved within a broader range of $2,300 to $2,800, but more recently, it has been confined to an even narrower band after falling below its 20-day SMA at the end of August
ETH began September with a drop of 3.46%, with the price dropping to 3.46%. Thanks to strong lower-level demand, ETH rebounded on Monday, rising by almost 5% to move back above $2,500 and settle at $2,539. However, with the 20-day SMA coming into play as a dynamic level of resistance, ETH fell back on Tuesday, registering a drop of 4.49% and settling at $2,425. Sellers attempted to drive ETH below $2,300 on Wednesday as it dipped to a day low of $2,310. Once again, buyers bought the dip, pushing ETH back above $2,400. ETH eventually registered an increase of 1.07% and settled at $2,451. The current session sees sellers back in control, with ETH down 1.54% and trading around $2,413.
Looking at our technical analysis, the MACD shows a bearish trend for ETH right now, while the RSI is less than 50, suggesting a pessimistic outlook. If selling pressure continues and drives ETH below $2,300, it may fall to around $2,100 before finding support. Conversely, buyers might try to stage a counterattack, potentially pushing the price up to test the resistance at $2,550
Solana (SOL) Price Analysis
On Wednesday, Solana (SOL) experienced a rise to $130, however, buyers are finding it difficult to sustain momentum and push past $135. The cryptocurrency has seen a decline of nearly 10% over the last week as it struggles to develop strong bullish momentum towards $150. SOL has been in a downward trend since failing to reach $160, with sellers pulling it below $150 and lower. SOL initially started in September, experiencing a drop of 5.03% and slipping below $130 to settle at $128
As a researcher analyzing the Solana (SOL) market, I observed that robust lower-level demand propelled SOL to a 4.98% rise on Monday, reaching $135. However, this level proved challenging for buyers to surpass due to dwindling demand. Consequently, SOL dipped back into the negative territory on Tuesday following an unsuccessful attempt to break above $135, resulting in a 5.47% drop and settling at $127. On Wednesday, sellers aimed to pull SOL down to $120, but strong demand near its support level enabled buyers to counteract and eventually regain control, leading to an almost 5% increase and a settlement at $133. In the current session, both buyers and sellers are vying for control over SOL, resulting in a slight downtrend
To alleviate the heavy bearish influence, the Share on Open (SOL) needs to surpass levels $135 and $140. Going beyond these thresholds would suggest bears are losing their grip, giving buyers an opportunity to take control. If a push above $135 does not materialize, it would imply sellers hold the upper hand. However, analysts have forecasted a significant rally for SOL, considering the recent unfavorable trend in its funding rate. Brian Quinlan, lead analyst at Santiment, noted that the turning negative funding rate indicates extreme bearish sentiment and opens up the possibility for a strong rebound
As a researcher, I’m closely monitoring the Binance funding rate for SOL, given its sentiment-based nature. My hope is that traders are aggressively shorting this asset, as liquidations from these positions could potentially spark the commencement of its next bullish trend. Notably, there appears to be an emerging pattern of increased short positions at present
Dogecoin (DOGE) Price Analysis
Regardless of multiple efforts made this week, the value of Dogecoin (DOGE) remained below the $0.100 mark, as sellers persistently held their positions to potentially push prices even lower than $0.090. On August 27, DOGE fell below its 20-day Simple Moving Average, and although buyers made attempts to regain this level on August 30, the intense selling pressure prevented them from doing so. By September 1, Dogecoin had dropped again below $0.100, losing nearly 6% of its value and settling at $0.095 before recovering slightly to $0.098 by Monday
On Tuesday, DOGE failed to reach $0.100 and instead dipped by 1.62%, ending the day at $0.97. Sellers aimed to take DOGE down to $0.090 on Wednesday, pushing it as low as $0.092, but robust demand from lower levels helped DOGE bounce back, increasing by 0.82% to $0.098. Currently, the session finds DOGE slightly decreasing as both buyers and sellers vie for control. Sellers are planning to push DOGE below $0.090, but buyers are likely to respond forcefully to defend this level. If DOGE manages to recover from this level, it suggests demand is growing at lower prices. It could potentially drop to $0.080 if sellers succeed in breaking through this level
Dogwifhat (WIF) Price Analysis
The meme coin Dogwifhat (WIF) experienced a strong rebound after plummeting to its support level on Sunday, following a decline of over 8%. This dip was then followed by a robust recovery, with an increase of 10.34% on Monday and settling at $1.54. Traders took advantage of the dip, leading to this increase
On Wednesday, the sellers tried to dominate and push WIF below its $1.40 support threshold. However, WIF bounced back from its support level due to growing demand and soared past the 20-day Simple Moving Average (SMA), showing a nearly 10% rise. The price then peaked at $1.64 after breaking through the resistance. In the current trading session, the sellers are in charge, causing WIF to dip more than 3%, as they try to push it back towards $1.55
SEI Price Analysis
Following its rejection at the $0.35 mark on August 25, SEI appears to be making an effort to reverse a negative trend. Since then, it has fallen below both the 20 and 50-day moving averages and reached $0.26 on September 1 after a decline of approximately 6.41%. However, there was a slight recovery on Monday with a nearly 7% rise, pushing the price to $0.28. Attempts by buyers to move above the 20-day moving average on Tuesday were unsuccessful, allowing sellers to regain control and cause SEI to drop by 7.51% to $0.26 once more
SEI experienced a significant drop in price on Wednesday, bottoming out at $0.25. However, it subsequently recovered and registered an increase of nearly 4%, settling at $0.27. The security exhibits substantial volatility during the current session as buyers aim to push prices above the 20-day Simple Moving Average (SMA), while sellers seek to pull the price below $0.25
Akash Network (AKT) Price Analysis
As a researcher focusing on AI-centric cryptocurrencies, I’ve observed a significant drop in Akash Network (AKT) this week. The decline followed the announcement of the DOJ probe on Nvidia, causing AKT to plunge over 11% from its intra-day high of $2.40, losing a crucial support level. Starting from late August, AKT slid below the 20-day Simple Moving Average (SMA) and had dropped to $2.37 by early September
AKT started this week on an optimistic tone, recording a 4.38% rise to reach $2.48. However, the momentum of buyers seemed to dwindle as the 20-day Simple Moving Average (SMA) came into play, and selling pressure escalated following Nvidia’s drastic decline. Consequently, AKT dipped by nearly 9%, falling to $2.26 on Tuesday. The price touched a low of $2.13 on Wednesday as bearish sentiment prevailed. Nevertheless, buyers could potentially drive the price back up and register a minor uptick. Buyers endeavored to push the price upward during the ongoing session, with AKT hitting an intra-day high of $2.43. However, demand waned closer to the 20-day SMA, and sellers took charge. Currently, AKT is down by almost 1.40% and trading at $2.24
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2024-09-05 13:14