As a seasoned cryptocurrency investor with years of experience under my belt, I have seen numerous market fluctuations and trends. From the analysis provided, it appears that Form (FRM) has shown resilience, managing to hold above its 20-day Simple Moving Average (SMA), despite not being able to break through it as resistance. DOT, on the other hand, experienced a slight dip but managed to bounce back, indicating a strong underlying support.
On Thursday, Bitcoin (BTC) briefly surged past $58,000 due to the unveiling of US inflation data and speculations about Federal Reserve interest rate adjustments. The US consumer prices experienced a minor rise in August, however, the persistent core inflation was indicated by an increase of 0.28% in the Core Consumer Price Index, contrary to the expected 0.2% rise. This resulted in a higher probability of a 25 basis points rate cut, rising from 66% to 85%, while the possibility of a 50 basis points rate cut decreased from 34% to 15%.
After experiencing a dip post the Trump-Harris debate, Bitcoin and related cryptocurrency stocks rebounded. Polls indicated that Harris was perceived as the winner of the debate against former President Trump, suggesting that voters found her performance more favorable. Nevertheless, the future of Bitcoin remains uncertain since neither candidate discussed crypto or regulatory matters during the debate.
Bitcoin (BTC), Crypto Stocks Recover
On September 11, crypto stocks took a dip after the debate between Kamala Harris and Donald Trump, as opinion polls showed Harris performing better. However, these stocks ended up closing only marginally lower, having quickly rebounded. For instance, Coinbase shares surged by 5.3% following an initial drop to $150, reaching its pre-debate price of $157 again. MicroStrategy also experienced a significant decrease, dropping to $122 before recovering and finishing at $129. Similarly, BTC mining companies Marathon Digital and Riot Platforms initially declined by 0.94% and 2.07%, respectively.
Uncertainty Around Bitcoin
Bitcoin (BTC) is facing a period of uncertainty following the recent presidential debate, as no clear stance on economic policy or cryptocurrency regulations was taken. This has left analysts and stakeholders disillusioned, as they had hoped for more discussion on the subject. Tim Kravchunovsky, CEO of Chirp, suggests that the crypto industry should take matters into its own hands, given the lack of focus on crypto by presidential candidates, regardless of the political outcome.
In summary, during the debate, neither candidate discussed cryptocurrency, which some people in the crypto community consider an oversight since they were hoping for more clarity on this topic post-debate. According to QCP Capital’s analysis, investors have expressed concerns due to the absence of strong economic policies from both candidates. Additionally, analysts at QCP Capital suggest that market volatility could rise because of the lack of a clear and consistent economic message.
Leverage In BTC Markets Sees Jump
In simple terms, there’s been a rise in borrowing for Bitcoin investments, suggesting investors are ready to accept higher risk. This could lead to greater market turbulence. The leverage ratio, which compares the total value of open futures contracts to the number of Bitcoins held on exchanges, has hit a high not seen since October 2023, at 0.2060. This rise follows a long period where the ratio stayed below 0.20, suggesting traders have been borrowing funds to boost their future investment positions.
After the fall of FTX, the projected ratio reached its maximum point. Using leverage enables traders to manage substantial investments without significantly depleting their capital, amplifying both gains and losses. This feature can be beneficial and risky for investors as it exposes them to potential margin calls and compulsory sales when the market goes against their selected position. In other words, leverage is like a two-sided tool that can either boost profits or lead to troublesome situations due to margin shortages and forced liquidations.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has struggled to maintain its momentum beyond the $58,000 mark after briefly surpassing it on Thursday and again at the start of today’s trading. However, despite a dip below $53,000 last Friday, Bitcoin has generally shown optimistic trends this week. This week’s positive price action saw BTC climb above $55,000 and challenge the resistance at $58,000. The push towards $58,000 started over the weekend with a slight increase on Saturday and a 1.25% rise on Sunday, ending the day at $54,978. A significant jump of nearly 4% on Monday allowed Bitcoin to surpass $55,000 and settle at $57,079. Despite several attempts by buyers to break through the $58,000 resistance level, they have so far been unsuccessful.
On Tuesday, Bitcoin briefly reached an intraday peak of $58,080, marking another effort to surmount resistance, but the advance crumbled, leaving the cryptocurrency at a closing price of $57,662, representing a minimal 1.02% gain. Sellers aimed to pull Bitcoin below $55,000 on Wednesday, causing it to plummet to a low of $55,592, but robust underlying demand helped it recover somewhat. By the end of Wednesday, BTC had dropped by 0.53% to $57,356. However, Bitcoin rebounded on Thursday following the release of CPI numbers and the Trump-Harris debate, inching up 1.43% to settle at $58,178. At present, during this session, Bitcoin is down by nearly 0.50%, as sellers try to push the price beneath $58,000 again.
Based on Hyblock Capital’s observations, there appears to be a substantial amount of high-level liquidity around the prices of $58,000 and $58,500. Since market liquidity is generally low, volatility might increase as Bitcoin approaches these price points.
Areas with high impact on Bitcoin’s price around $58,500 could lead to higher market fluctuations and present profitable chances for traders. The overall trading volume in these zones is limited, signaling a bullish trend, while the global buying and selling ratio continues to be positive, implying strong underlying interest from both buyers and sellers.
If the Relative Strength Index (RSI) surpasses 50%, it signals a potential short-term increase in BTC‘s value. As long as buyers manage to maintain it above the 20-day Simple Moving Average (SMA) and the $58,000 mark, Bitcoin could rise towards or even exceed $60,000. However, if BTC fails to break these levels, a slide down to approximately $55,000 becomes the probable scenario. If the $55,000 level is breached, we might see a further drop to around $52,000 or even $50,000.
Ethereum (ETH) Price Analysis
At present, Ethereum (ETH) is finding stability between approximately $2,300 and $2,400, teetering at a significant point where it could potentially surge past $2,400 or slide back down to $2,200. Despite a robust rebound following its drop to $2,150, ETH has had difficulty regaining the $2,400 level. A recovery over the weekend allowed ETH to recover and surpass $2,200, closing the Sunday session at $2,298. The new week started with buyers maintaining control, as ETH experienced a rise of 2.71%, moving above $2,300 and settling at $2,360. Sellers made attempts to pull ETH back below $2,300 on Tuesday, but the demand at lower levels overpowered the selling pressure, leading to an increase of 1.24% and a close at $2,389.
On Wednesday, the $2,400 barrier came into effect, giving sellers the upper hand. As a result, ETH fell to a low of $2,281, but investors seized the opportunity to buy at a discount, propelling the price back up to $2,342 and slightly beyond. On Thursday, another attempt was made to surpass $2,400, but only minimal growth was recorded, with the price settling at $2,363. Currently, sellers are once again dominating the market, as ETH has experienced a slight decline and is trading at $2,345. Given that ETH is currently consolidating within a tight range, it will face a significant challenge in breaking through resistance levels.
So far, Ethereum (ETH) has found it tough to surpass $2,400. Sellers have been quite active in defending this level. However, if the buyers manage to build up momentum and push ETH above $2,400, the next challenge would be at $2,500. Overcoming this hurdle could pave the way for a potential rise towards $2,700. Conversely, if sellers regain control, Ethereum might slip below $2,300 and potentially drop as low as $2,100.
Solana (SOL) Price Analysis
On Thursday, Solana (SOL) didn’t manage to surpass $140, instead continuing its consolidation beneath the 20-day Simple Moving Average. However, it’s important to note that this cryptocurrency made a strong comeback this week after dropping to $120 last Friday. By Sunday, it had climbed to $130 and continued its upward trend on Monday, increasing by almost 4% despite encountering intense selling pressure, settling at $135. The price experienced significant volatility on Tuesday as both buyers and sellers vied for control. Buyers aimed to push SOL above $140, while sellers sought to drive it below $130. Despite these efforts, SOL only recorded a minimal increase of 0.44%.
On Wednesday, sellers assumed dominance, causing SOL to plummet to a daily low of $128. But as the price dipped, investor demand grew, pushing SOL back over $130 and ending the day at $132, representing a drop of approximately 2.50%. On Thursday, SOL followed the broader market’s recovery, surging nearly 3% to close at $136. In the current trading session, SOL has dipped by 1.45%, hovering around $1.35. If sellers succeed in pushing SOL below $130, buyers are anticipated to step in and maintain the price above this level, preventing a fall to $130. If, however, $130 is broken, SOL might slide down to $120.
If buyers manage to take charge, they’ll likely try to drive SOL over its 20-day Simple Moving Average (SMA) and the $140 mark. Breaking through this point might propel SOL towards the $150 level.
Dogwifhat (WIF) Price Analysis
Despite a significant 6.32% rise on Monday that momentarily took Dogwifhat (WIF) above its 20-day Simple Moving Average (SMA) and over $1.60, the cryptocurrency was unable to maintain this momentum and surpass its 50-day SMA due to substantial selling pressure. Consequently, WIF dipped by 1.23% on Tuesday, dropping from $1.66 to $1.64. The downward trend continued on Tuesday with increased selling pressure, causing WIF to plummet nearly 7%, falling back below the 20-day SMA and $1.60, settling at $1.54.
The buyers tried to combat the selling force, but they only managed a 1.22% rise, failing to go over $1.60. As such, WIF ended up at $1.56 for this session. Currently, WIF is falling by almost 2%, with sellers aiming to push the price below $1.50. If they succeed, WIF might drop to its support level of $1.40. However, if it rebounds from this point, it could rise again above $1.50. WIF encounters significant resistance at $1.60. If the buyers can surpass this level, their next important targets would be $1.70 and $1.75.
Polkadot (DOT) Price Analysis
On Thursday, Polkadot (DOT) surpassed a crucial milestone that might propel its price towards $4.50. Specifically, on Thursday, DOT managed to move past its 20-day Simple Moving Average (SMA), a level it had found challenging in previous trading sessions. Since August 24, when it failed to sustain above $5, DOT has been following a bearish trend. However, it dipped to a low of $3.82 on Friday, highlighting a significant support level it has maintained for years. Over the weekend, DOT started recovering, with a 3.28% increase on Saturday and a further 1.96% rise on Sunday, pushing its price back above $4 and settling at $4.17. On Monday, DOT gained nearly 3%, moving to $4.29. Yet, it was unable to surpass the 20-day SMA, which served as a barrier.
On Tuesday, DOT experienced a slide into the negative territory due to escalating selling activity, dropping by 0.93% to $4.25. Sellers aimed to force DOT below $4 for the second time, pushing it down to $4.07 at its lowest point. Yet, demand emerged, causing DOT to rise to $4.19 before ultimately closing with a decrease of 1.41%. Trading activity became more active on Thursday, resulting in DOT increasing nearly 3%, surpassing the 20-day Simple Moving Average (SMA) and settling at $4.31. At present, DOT is showing a slight increase as buyers try to maintain its position above the 20-day SMA. If DOT manages to remain above this level, it could potentially advance further and challenge the resistance at $4.50. Overcoming this barrier could propel DOT towards the target of $5.
Bittensor (TAO) Price Analysis
AI tokens like Bittensor (TAO) experienced a favorable week, as prices significantly increased. The upward trend for TAO started during the weekend when it recorded gains of approximately 1.6% and 4.7% on Saturday and Sunday respectively, finishing at $246. The bullish momentum grew even stronger on Monday, with TAO jumping over 12%, reaching $276. Buyers also attempted to push TAO above its 20-day moving average, reaching a daily high of $285, but were halted by strong upper-level resistance. TAO encountered this resistance on Tuesday and managed to reach $287 after a nearly 4% increase, briefly surpassing the 20-day moving average.
Yesterday, I observed a notable decline in TAO due to heightened selling activity among sellers. This resulted in TAO plunging to a daily low of $273 before rebounding and ending the day at $284. However, on Thursday, buyers re-entered the market, causing TAO to surge by 3.23%, surpassing both its 20-day and 50-day Simple Moving Averages (SMAs) as well as the resistance at $290, closing at $293. Currently, in this session, TAO is almost 1% down, with sellers attempting to push it back below the $290 mark. If buyers manage to keep TAO above $290, a potential rise to $300 and beyond might occur. On the contrary, if TAO falls below $290 and its moving averages, there’s a possibility of it sliding down to $250 or even $240.
Injective (INJ) Price Analysis
During the current trading session, Injective (INJ) has halted its upward momentum, with buyers unable to propel it beyond $20. Despite an impressive week thus far, marked by a nearly 13% rise over seven days, INJ experienced a decline during the ongoing session. The climb toward $20 commenced on Sunday, resulting in a 1.43% increase that closed the weekend at $16.24. The week’s opening saw INJ surge by 6.37%, allowing it to break above $17 and settle at $17.28. Buoyed by this momentum, buyers continued their push on Tuesday, causing INJ to rise by 5.31% and reach $18.20.
On Wednesday, the 20-day Simple Moving Average served as a challenging barrier for sellers, who tried to dominate the market. This led INJ to reach a daily low of $17.63. But, buyers soon regained control, causing INJ to surge past its 20-day SMA, ending at $18.74 after a rise of approximately 3%. On Thursday, INJ continued its bullish trend, surpassing the 50-day SMA and closing at $19.36. However, sellers have been active near the $20 mark, causing INJ to slide into negative territory during the current trading session. Presently, INJ is experiencing a decline of over 2%, as sellers aim to push it below the 50-day SMA.
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2024-09-13 13:11