After analyzing the current market trends, it seems that we are witnessing a bearish trend across several major cryptocurrencies. My personal investment portfolio has taken a hit due to this downturn, but I’ve learned over the years that these market fluctuations are an integral part of investing in such a volatile sector.
On Thursday, the cryptocurrency market followed suit with the stock market’s decline as investors prepared for Friday’s significant jobs report release. Consequently, most major U.S. stock indexes saw losses, slipping into negative territory. Bitcoin (BTC) fell by almost 4% during the past day, whereas gold experienced a 1% rise to surpass the $2,500 threshold once more.
Virtually all cryptocurrencies are experiencing a downturn, with bears maintaining control over the market. Bitcoin (BTC) is currently dropping by 1.39%, while Ethereum (ETH) has dipped below $2,400, decreasing by about 1.50% within the last day. Similarly, Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB) have also seen declines, with SOL down by 2.45%, DOGE dropping by 1.55%, and SHIB almost a 1% decrease.
Markets Brace For Job Report
As a researcher keeping a close eye on the economic landscape, I’ve noticed persistent worries about an impending US recession. This week, Bitcoin (BTC), Ethereum (ETH), Dow Jones, Nasdaq, and the NYSE have all seen declines as investors eagerly await this Friday’s jobs report, which could provide insights into the broader economic picture. Yet, amidst this market downturn and mounting anxieties, some investors are optimistically hoping for a gentle economic recovery – a so-called ‘soft landing.’ Emmanuel Cau, the head of European equity strategy at Barclays, expressed this sentiment recently.
Despite some uncertainties with the incoming data, it’s not causing a complete breakdown, and the ongoing global recession-prevention measures may help extend the economic cycle into 2025. In essence, this seems to be a generally favorable situation for stocks, but a significant portion of potential gains might already be reflected in current prices, and there are several potential challenges that need to be navigated.
On Thursday, BTC experienced a decrease of approximately 3% due to apprehension, while the broader crypto market saw a decline of 1.53%, causing its total market capitalization to fall beneath the $2 trillion threshold. Similarly, ETH witnessed a significant drop on the same day as it persisted in facing challenges and dipped below the $2,400 level.
Is ETH Underperforming Or Undervalued?
In simpler terms, Ethereum (ETH) has been underperforming various assets – both within the crypto market and beyond it. Assets like Bitcoin, Solana, tech giants such as Meta, Nvidia, Apple, gold, and others have experienced significant growth. According to Ecoinometrics data, among large capitalization assets, Ethereum is at the bottom of the pack with a 9% return. On the flip side, Nvidia, Meta, Bitcoin, Apple, Gold, Google, Amazon, Nasdaq, and Microsoft have seen increases of 142%, 48%, 38%, 22%, 19%, 18%, 18%, and 12% respectively.
“Things don’t look too promising in the near future, as there’s a higher risk of further declines. Smaller interest rate reductions might not significantly improve market fluidity. Uncertainty in the US economy could negatively impact the broader market. It would be wise to proceed with caution rather than taking aggressive steps.”
According to CryptoQuant analysts, several factors might be causing ETH‘s less-than-optimal performance. Firstly, the number of transactions on the Ethereum mainnet has decreased, resulting in a drop in transaction fees. Secondly, the total supply of ETH has expanded, which could mean that it may no longer maintain its deflationary nature. This shift is believed to be linked to Ethereum’s Dencun upgrade, bringing about new structural changes within the network architecture.
One analyst has argued that ETH has a slight chance of hitting a new all-time high at the end of 2024, even as it struggles to keep up with other major tech stocks. Despite this, some believe a price jump is around the corner.
Currently, Ethereum appears to be facing challenges due to the absence of a compelling story that could significantly boost its value, in contrast to many other assets.
It turns out that Ethereum ETFs haven’t been as profitable as anticipated. Despite garnering a lot of interest from Wall Street, they faced stiff competition, resulting in more lucrative technology stocks providing much higher yields.
Michael Saylor Makes Bold Statement
Michael Saylor, CEO of MicroStrategy, has made a daring recommendation about Bitcoin, advising traders and investors to seize the opportunity presented by this digital currency. His comments come at a time when Bitcoin and the broader crypto market are experiencing subdued price action. Over the last six months, Bitcoin’s value has remained relatively stable, with many investors showing little interest in the asset. The past three months have seen increasing bearish pressure on Bitcoin, culminating in one of its sharpest declines in recent history.
Under Saylor’s leadership, MicroStrategy has maintained its strategic buying spree of Bitcoin. As of July, the corporation owns more than 226,500 Bitcoins, placing it among the top corporate owners of this digital asset.
India’s FIU Considering Approving More Offshore Exchanges
As an analyst, I must share that the WazirX controversy has indeed shaken up India’s crypto landscape. Yet, there’s some positive news on the horizon for our crypto community. Reports suggest that India’s Financial Intelligence Unit (FIU) is contemplating four overseas exchanges for potential approval to restart operations within our borders. This decision follows the FIU’s recent lifting of bans on Binance and KuCoin. A trusted source has indicated this development.
“Additional requests have come from four overseas cryptocurrency exchanges hoping to enter India’s market. We anticipate that at least two of these may be given approval to resume operations by the financial year 2025 following a comprehensive inspection focusing on transaction transparency, reporting of suspicious transactions, and other related matters.”
As per authorities, the Financial Intelligence Unit (FIU) in India emphasizes adherence to anti-money laundering rules prior to giving its approval for additional cryptocurrency exchanges.
“We won’t permit any cryptocurrency exchange to function in India until a thorough verification process is completed. Our approach towards compliance is rigorous.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) price correction has been going on for the past six months, with the world’s largest cryptocurrency down over 7% during the past week. Over six months, the asset has declined by around 23%. While this is not too big a decline if we look at BTC’s price history, analysts are worried and growing increasingly bearish as the downtrend lingers on. Some analysts are hoping September is the local bottom for the asset, adding that if it isn’t, things could be bleak for the next few months. CryptoQuant head of research Julio Moreno stated that BTC was down simply because there was no demand growth.
As a crypto investor, I’m noticing that all valuation indicators are pointing towards a bearish trend. However, historically, the fourth quarter has been favorable for the crypto market. Yet, the outcome in this case could still be influenced by the broader economic conditions and the state of the Bitcoin market itself.
Furthermore, it appears that large investors (whales) in Bitcoin and other major cryptocurrencies have shown less activity recently, suggesting a cautious market atmosphere. However, some whales are still buying, implying this isn’t necessarily a bearish trend in its entirety. Examining the Bitcoin price chart, we notice that BTC has dropped over the past week and is currently in the red during this session as well. Interestingly, BTC opened the week with a 3% increase on Monday, reaching $59,169. It attempted to surpass $60,000 and the 20-day Simple Moving Average (SMA) on Tuesday but fell short. Consequently, sellers outnumbered buyers, causing BTC to drop by 2.77% to $57,529.
On Wednesday, Bitcoin dipped to its lowest point of the day at $55,658 as sellers attempted to push it below $55,000. However, due to solid underlying demand, Bitcoin rebounded, turning the selling pressure into a 0.85% increase that ended with a close at $58,017. Unfortunately, buyers were unable to maintain their momentum, and Bitcoin fell again on Thursday, dropping by more than 3% to $56,190. At present, Bitcoin is down by 1.45%, trading near the $55,400 level. The $55,000 mark provides support for Bitcoin. If this level is broken, it could lead to a drop towards $50,000. Traders are anticipated to protect both levels, and if the price recovers, we might witness a rebound toward the 20-day Simple Moving Average.
Ethereum (ETH) Price Analysis
In simpler terms, over the past day, the price of Ethereum (ETH) has dropped by more than 3%, falling below $2,400. This bearish trend could potentially weaken the $2,300 support level, as sellers aim to push the price further down. Some investors worry that even if the bull market restarts, ETH might not perform as well as expected. The reasons for its lackluster performance are believed to be a combination of unfavorable market conditions, decreased demand, low transaction fees, unattractive staking rewards, and a lack of enthusiasm for Ethereum ETFs available on the spot market.
This week, Ethereum (ETH) has been moving lower, with the $2,300 support point becoming increasingly significant. The week began with a 4.55% increase, pushing ETH up to $2,539. However, the price was unable to hold at this level and dropped by 4.49% to $2,425 on Tuesday. Sellers aimed to drive ETH below $2,300 on Wednesday as it dipped to a low of $2,310. Despite this, active buyers managed to defend the $2,300 level and Ethereum recovered slightly, gaining 1.07% to close at $2,451. The upward trend was short-lived as selling pressure returned on Thursday, causing ETH to fall by 3.34% to $2,369. In the current session, sellers are attempting to break through the $2,300 support and buyers are finding it difficult to counteract the selling pressure.
If Ethereum (ETH) manages to surpass the $2,300 mark, it might slide down towards $2,100, suggesting a stronger control by bearish forces in the market. But if ETH recovers from its strongholds, bulls will try to regain the $2,500 level. A break above this level could potentially show that sellers are weakening at lower price points.
Solana (SOL) Price Analysis
right now, Solana (SOL) is having trouble regaining $135 as its value fluctuates between approximately $120 and $135. This week has been marked by substantial price swings, with investors purchasing dips and selling during rallies, neither side gaining control. After being turned away at $160, Solana became bearish on September 1, with buyers only managing to slow its descent when it dropped to $128. The beginning of this week saw a nearly 5% increase in SOL, pushing it up to $135. However, an attempt by buyers to push above this level on Tuesday was unsuccessful, causing Solana to drop once more, falling by 5.47% and slipping below $130 to rest at $127.
Yesterday, I witnessed a dip in my SOL investment as it reached a daily low of $122. Yet, strong underlying demand sparked a swift recovery, propelling SOL to an almost 5% rise, reaching $133. Unfortunately, it failed to surpass the $135 mark and slid back into negative territory on Thursday, dropping by 3.16% to $129. Currently, my SOL is trading around the $128 mark in this session. For a potential move towards $150, SOL needs to reclaim both the $130 and $135 price levels. However, given that sellers are currently dominating, the bulls must first protect the $120 level and prevent any further reduction in the SOL price.
Toncoin (TON) Price Analysis
Toncoin (TON) has been plummeting since the arrest of Telegram founder Pavel Durov was announced. This week, the cryptocurrency dropped a crucial support level as the 200-day Simple Moving Average (SMA) and 20-day SMA formed a ‘death cross’ on Wednesday, suggesting an intensifying bearish trend. TON’s value dipped below $5, and its market capitalization also experienced a significant decrease. All indicators suggest that TON might continue falling in the near future, with a bearish Moving Average Convergence Divergence (MACD) and a Relative Strength Index (RSI) less than 50.
On Monday, TON saw a slight growth, aiming to bounce back from its $5 support level. Yet, it dropped dramatically on Tuesday, plummeting below $5 and ending the day at $4.92. The downward trend persisted on Wednesday, reaching a low of $4.51 before slightly recovering to $4.73. Attempts were made by buyers on Thursday to regain $5 as TON peaked at $5.05 for the day. However, the bullish momentum faded above $5, allowing sellers to push the price down to $4.81. In the current session, TON has risen by 1.18%, with buyers planning another attempt to reclaim the $5 mark.
Tron (TRX) Price Analysis
As a researcher studying the cryptocurrency market, I’ve observed that Tron (TRX) has experienced a substantial drop this week. Despite attempts to surpass the resistance at $0.160, it failed and subsequently turned bearish, dipping to $0.156 on Sunday. The downward trend continued on Monday, with the price falling by approximately 1% to $0.154. A more significant decline of around 2.41% on Tuesday pushed TRX below its 20-day Simple Moving Average (SMA) and settled it at $0.150. Buyers made an attempt to recover on Wednesday, but sellers overpowered them, pushing TRX down further to $0.149. A slight recovery on Thursday saw TRX reclaim the $0.150 level, but it has since returned to negative territory during this session, with sellers aiming to push the price towards $0.140. If TRX fails to regain the $0.150 mark, we might see bears exert more control and drive the price lower. The Moving Average Convergence Divergence (MACD) suggests a bearish sentiment around the asset at present.
Shiba Inu (SHIB) Price Analysis
Over the weekend, Shiba Inu (SHIB) dropped below its 20-day Simple Moving Average and has been having trouble remaining above $0.0000130. The $0.0000140 level is proving to be a significant hurdle for SHIB, causing its value to fluctuate between these two points throughout the week. After an initial uptick at the start of the week following a steep decline on Sunday, SHIB rose by almost 4% and settled at $0.0000136. However, due to heavy selling pressure near the 20-day SMA, SHIB slipped back into negative territory on Tuesday after an unsuccessful attempt to surpass the moving average, resulting in a decrease of 4.32% to $0.0000130.
On Wednesday, sellers tried to drop the price of SHIB below $0.0000130, but it dipped to a daily low of $0.0000124 instead. This was due to strong lower-level buying interest stepping in and countering the selling pressure, causing SHIB to rise by nearly 4%, ending the day at $0.0000136. However, the momentum from buyers slowed on Thursday, resulting in a decrease of more than 3% to $0.0000131. In the current session, sellers are attempting to push SHIB back below $0.0000130 again.
Polkadot (DOT) Price Analysis
As an analyst, I’ve observed that Polkadot (DOT) has dipped beneath the significant $4 mark, as the negative sentiment surrounding the asset grows stronger. Despite previous efforts to maintain a position above this level, the hope for recovery and a return to the $4.50 mark seemed promising. Regrettably, the recent decline in DOT could potentially push it down towards $3.62. If this happens, it would represent the second time that DOT has fallen back to its multi-year support since August 5.
This week, DOT started its consolidation phase from Monday, witnessing a 3.44% surge that took the price up to $4.21. Building on this momentum, buyers aimed to progress further, taking DOT to a daily high of $4.28 on Monday. However, sellers took charge the next day, causing a 3.33% dip to $4.07. On Wednesday, sellers made an attempt to drive DOT below $4, but their efforts were thwarted as the price dropped to a daily low of $3.88 due to strong demand at lower levels. As a consequence, DOT bounced back, registering a 0.98% increase and pushing above $4 once more, ending the day at $4.11. The price saw another minor setback on Thursday as buying momentum waned, resulting in a 2.19% decrease to $4.02.
In the present situation, DOT is losing nearly 1%, dropping below the $4 mark. Yet, sellers may find it challenging to drive DOT lower due to robust buying interest at this price point. As we observed on Wednesday, this price range has been previously tested. It’s anticipated that buyers will counteract the selling pressure and regain control over the price, pushing it back above $4. However, a surge toward $4.50 would need a substantial trigger, as demand begins to wane at higher levels.
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2024-09-06 15:13