As a seasoned trader with over two decades of experience under my belt, I’ve seen market trends come and go, but the current state of Dogwifhat (WIF) and its peers Ripple (XRP) and Toncoin (TON) has me scratching my graying beard in confusion. WIF, a coin that was once a promising newcomer, is now stuck between a rock and a hard place, unable to break free from the shackles of its narrow trading range.
Bitcoin (BTC) is back above $60,000 after registering an increase of over 3% in the past 24 hours as optimism around a Fed rate cut grew. Other cryptocurrencies, including Ethereum (ETH), Uniswap (UNI), FET, SUI, Aptos (APT), and Bittensor (TAO), registered notable gains. However, Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and Toncoin (TON) remained in the red, registering notable drops.
Yesterday, I witnessed an impressive increase in the value of spot Bitcoin ETFs. In just one day, they added approximately $250 million worth of Bitcoin, marking the highest daily increase in over a month. This surge propelled Bitcoin’s price above $61,000 before it stabilized around $60,000. Over the past week, this uptick has boosted Bitcoin’s value by more than 7%.
Bitcoin ETFs See Inflows, ETH ETFs Continue Struggle
Based on recent figures, Bitcoin spot ETFs recorded approximately $13 million in profits on Monday, whereas Ethereum spot ETFs experienced a loss of around $9.5 million. Leading the pack among Bitcoin ETFs was BlackRock’s IBIT, which amassed more than $15 million, bringing its total net inflows since January 11 to nearly $21 billion. Fidelity’s FBTC followed closely behind, gathering over $5 million, while Fidelity Templeton’s EZBC saw an inflow of approximately $5.04 million. Additionally, Grayscale’s Bitcoin Mini Trust added about $2.82 million, and VanEck’s HODL received $4.91 million in investments.
Meanwhile, it’s worth noting that Ethereum ETFs have been facing challenges and experienced total outflows amounting to $9.51 million. The exception to this trend were BlackRock’s ETHA and Grayscale’s Ethereum Mini Trust, which saw inflows of $4.16 million and $2.29 million respectively. Most other major Ethereum ETFs remained unchanged, while Grayscale’s ETHE faced a loss of $13.83 million.
Spot Bitcoin ETFs Are Buying
On Monday, Spot Bitcoin Exchange-Traded Funds (ETFs) purchased approximately $250 million in Bitcoin, marking the largest acquisition in over a month. This steady accumulation of Bitcoin by these ETFs has fueled speculation about the factors influencing the current surge. The upcoming Federal Reserve meeting, where interest rates are anticipated to be reduced for the first time since March 2022, could be a significant contributor to this trend. As a result of this expectation, BTC-related products have reversed their weekly outflows, with inflows totaling $436 million following outflows worth $1.2 billion. The recent increase in inflows can primarily be attributed to the anticipated 50 basis points interest rate cut on September 18. Despite Bitcoin trading above $60,000 and Ethereum surpassing $2,300, the markets continue to exhibit signs of nervousness.
Japan Reconsidering Crypto Rules
Reports indicate that Japan may ease its cryptocurrency regulations due to an increasing number of businesses investigating blockchain technology. Although Prime Minister Fumio Kishida has placed emphasis on Web3, it is uncertain whether his potential successor will advocate for changes in cryptocurrency regulations. Under the leadership of Prime Minister Kishida, Japanese regulators have facilitated token listings and established a system for crypto exchanges to safeguard investors. Additionally, Japan has formulated rules for stablecoins and developed a framework for these digital assets.
As a researcher delving into the realm of blockchain technology, I’ve noticed that some prominent Japanese companies are spearheading initiatives in this area. Among them are Sony, Nippon Telegraph and Telephone, Mitsubishi UFJ Financial Group, and Toyota Motor. Recently, an exciting collaboration between Sony Block Solution Labs and Circle has been announced. This partnership aims to foster innovation and creativity using decentralized technologies within the Sonyeium blockchain ecosystem.
By connecting Circle’s financial system with Soneium, we aim to revolutionize the intersection of digital entertainment and finance.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) saw an approximately 3% surge in value due to growing anticipation that the Federal Reserve might lower interest rates. This could potentially stimulate interest in cryptocurrencies. On Tuesday night, BTC rose above $61,000, marking a substantial daily increase before settling around $60,000. Currently, it’s trading slightly under $60,500, with buyers holding the upper hand. The likelihood of a 0.5% rate decrease was estimated at 55%, with traders fully expecting a slight easing by this amount on Wednesday.
As a crypto investor, I’ve been noticing a growing link between cryptocurrencies and traditional markets. This correlation seems to be pushing up the price of Bitcoin lately.
Furthermore, MicroStrategy’s statement about intending to sell convertible notes for more Bitcoin has boosted confidence in the world’s top cryptocurrency. As Bitcoin trades above crucial thresholds, investors are anticipating new record highs, potentially reaching $65,000. Analysts from Bitfinex suggest that a modest reduction of 25 basis points might encourage market optimism, while a larger reduction of 50 basis points could cause uncertainty.
Over the weekend, Bitcoin saw a dip following its nearly 4% rise, pushing it past key levels such as the 20-day Simple Moving Average (SMA), the 50-day SMA, and the $60,000 mark to reach $60,479. However, with sellers becoming active at this level, buying momentum slowed down over the weekend. As a result, Bitcoin fell back below $60,000 on Saturday, ending the day just above the 50-day SMA at $59,949. The selling pressure intensified on Sunday as Bitcoin dropped further below the 50-day SMA after a decrease of 1.31%, closing at $59,165. The downward trend continued on Monday with a decline of 1.69%, causing Bitcoin to drop to $58,164.
Bitcoin experienced a significant boost in demand on Tuesday due to several market factors. These included exchange-traded funds purchasing approximately $250 million worth of Bitcoin and positive expectations surrounding the interest rate cut. This influx of buyers caused Bitcoin to increase by almost 4%, surpassing the 50-day Simple Moving Average (SMA) and the $60,000 level, reaching $60,321. Attempts were made to push the price above $61,000, as shown in the chart, but these efforts were unsuccessful. As of now, Bitcoin is slightly up during the current session, with buyers aiming to solidify their position above $60,000 in expectation of the interest rate cut. If the market reacts favorably to the rate cut, Bitcoin could potentially surge beyond the 200-day SMA to reach $65,000. Conversely, a more substantial rate cut might create uncertainty in the market, causing Bitcoin to dip back below $60,000 to levels around $58,000 or even $55,000. In the event of negative sentiment, Bitcoin could potentially plummet to $50,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) surpassed $2,300 following a nearly 1.5% growth, marking a significant recovery alongside Bitcoin. However, ETH is struggling against a persistent barrier at $2,400, which has so far thwarted any attempt to break through this level. The upward trend of the 20-day Simple Moving Average suggests a negative outlook for Ethereum. Nevertheless, the support at $2,300 has held firm despite multiple tests in September. Examining the price chart, ETH managed to push above $2,400 on Friday, peaking at $2,442 after a 3.34% rise.
Initially, due to increased seller activity and the influence of the 20-day Simple Moving Average, Ether (ETH) dropped by 0.91% on Saturday to $2,420. The selling pressure intensified on Sunday, causing ETH to fall below $2,400, leading to a more substantial decline of 4.21% to $2,318. As the new week began, Ether continued its downward trend, dropping another 0.95% to dip below $2,300 and settle at $2,296. However, the selling pressure started to dissipate as demand picked up on Tuesday, causing ETH to rise by approximately 2% to $2,343. Attempts were made by buyers to push Ether above $2,400, but they were unsuccessful, reaching a high of $2,393 before falling back. Currently, the session sees Ether showing a slight decrease as both buyers and sellers vie for control.
For Ethereum (ETH) to shift its current sentiment positively, it needs to surpass the $2,400 mark, but so far, it has failed in its attempts. In order to prevent a further decline, investors need to maintain their positions at around $2,300. If this level is broken, ETH may fall as low as $2,100.
Solana (SOL) Price Analysis
From my perspective as an analyst, I’ve noticed that Solana (SOL) has been finding it challenging to maintain its position above the $130 mark. The 20-day Simple Moving Average (SMA) seems to be serving as a formidable barrier of resistance, hindering any potential advance towards $140. This week, SOL has experienced substantial volatility, with buyers stepping in to safeguard the support level around $130, while sellers have been trying to push it below this threshold.
Over the weekend, I observed that the sellers gained dominance, leading to a 1.41% dip in SOL on Saturday and a significant 4.20% drop on Sunday, causing it to slide beneath the 20-day Simple Moving Average (SMA) and settle at $131. As SOL approached its support level, there was an intense struggle between buyers and sellers for control, resulting in heightened volatility on Monday. In this battle, the buyers managed to prevent a fall below $130 but only achieved a minor uptick. On Tuesday, the buyers tried to regroup and push towards $140, however, the sellers intervened yet again, pulling the price back under the 20-day SMA, resulting in another minor increase for SOL.
In this ongoing trading session, Solana (SOL) is slightly decreasing as sellers aim to regain dominance and potentially drive SOL below $130. However, buyers are determined to maintain SOL above $130 to prevent a fall towards $120 or even lower. Conversely, if buyers can overpower the 20-day Simple Moving Average (SMA), it could suggest that the bearish trend is weakening. Under such circumstances, SOL might challenge the resistance at $140.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has seen another drop following the waning optimism about breaking past the $4.50 mark after a promising uptick last week. Last week, DOT showed some positive momentum and even surpassed its 20-day Simple Moving Average (SMA) on Friday, following a 3.02% rise to $4.43. However, encountering stiff resistance at $4.50 and the 50-day SMA acting as another hurdle, DOT experienced a slight increase of 0.23% on Saturday. The upward trend was short-lived, though, as DOT dipped back into negative territory on Sunday following an unsuccessful attempt to surpass the 20-day SMA, with sellers gaining control and pushing DOT down by 0.90% to $4.40.
On Monday, DOT fell significantly by 4.55%, ending the day at $4.20. Yet another attempt to recover was made on Tuesday, but the buyers failed to succeed as they pushed DOT below the 20-day Simple Moving Average (SMA) to $4.16. Currently, DOT is down by more than 1.20% in this session, with sellers still dominating the market and pushing prices lower. If sellers maintain control, DOT might slide further down to $4 – a level that has shown strong resistance. However, we may witness an uptick from this point, but the magnitude of the recovery will depend on whether DOT can rise above its 20-day SMA once more.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) is currently trading within a range of $1.40 to $1.60, with neither buyers nor sellers having significant control over price fluctuations at this time. Demand for WIF has been increasing at lower prices, yet it’s facing selling activity during rallies. The price chart indicates that WIF is experiencing high volatility even within the limited price range in which it’s trading. On Friday, WIF managed to surpass its 20-day Simple Moving Average (SMA) and $1.60 but soon retreated due to increasing selling pressure. After a gain of 5.02% on Friday, WIF declined by 4.29% on Saturday and 4.24% on Sunday, falling back below the 20-day SMA and concluding the weekend at $1.50.
On Monday, sellers tried to force WIF down, but buyers stepped in to resist the decline, resulting in a slight rise instead. A surge of nearly 2% was observed on Tuesday as WIF made an attempt to break past its 20-day Simple Moving Average (SMA). Unfortunately, this effort didn’t succeed, and WIF found itself trading in negative territory during the current session. Sellers aim to push WIF towards its support level of $1.40, a point which buyers are expected to hold firm. If the market sentiment improves and WIF manages to surpass the 20-day SMA, it might challenge the resistance at $.160 again.
Ripple (XRP) Price Analysis
After briefly touching $0.60, Ripple’s price has dipped close to its support at around $0.56. Over the past day, it has decreased by nearly 2%, but if we look back at the last week, it still appears positive. On Friday, XRP surpassed its 50-day Simple Moving Average (SMA), and continued its upward trend on Saturday, rising approximately 4% before settling just shy of $0.60. However, with significant resistance at this level, Ripple fell significantly on Sunday, dropping by about 4.04% to reach $0.57. This dip was halted by the 500-day SMA serving as a supportive barrier.
On Monday, XRP managed to combat the selling pressure and surge by 2.60%, reaching $0.58. But sellers became dominant on Tuesday, causing a minor decrease in XRP’s value. At present, the price is falling by 1.52%. If this trend continues, we might observe XRP dipping below the 50-day Simple Moving Average (SMA) to $0.55. Conversely, if it recovers and buyers gain strength, there could be another attempt to breach the resistance at $0.60 again.
Toncoin (TON) Price Analysis
Toncoin (TON) has been battling to break through the resistance at approximately $5.60, encountering strong selling activity from traders. On Friday, TON was unable to maintain its advance past the $6 mark due to weakening buyer momentum as demand waned in higher price regions. Consequently, TON closed at $5.81, representing a 5.81% increase. However, as selling pressure escalated, TON experienced declines over the weekend, decreasing by 2.38% on Saturday and 2.24% on Sunday to close at $5.55. The new trading week saw sellers remaining in control, pushing TON down to a daily low of $5.39 before rebounding slightly to end the day at $5.47.
On Tuesday, TON made an effort to surpass $5.60 but only reached a peak of $5.59 before falling back. It ended up closing at $5.50 after a 0.56% rise. In the current trading session, TON is experiencing minimal changes as both buyers and sellers vie for control over its price. If it manages to break above $5.60, we might see another upward trend towards $6. But if sellers maintain dominance, TON could slide down to $5.30, near the 20-day Simple Moving Average (SMA), or even lower to its support level of $5.
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2024-09-18 13:13