As a seasoned cryptocurrency investor with years of experience under my belt, I have seen market swings like these more times than I care to remember. The weekend was a rollercoaster ride for UNI, with buyers and sellers squaring off in a dance of volatility that left the token sliding below $7.50 by Sunday evening.
For two consecutive days, the values of cryptocurrencies have been decreasing. Notable currencies like Bitcoin (BTC) and Ethereum (ETH) are currently experiencing losses. Bitcoin dipped to $60,031 but has since recovered, now trading near $61,300. Ethereum, on the other hand, has maintained a bearish trend and has fallen below $2,400 after dropping nearly 4% over the past day.
Today, notable cryptocurrencies such as Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Toncoin (TON), and Polkadot (DOT) all began the day in the negative territory. This trend has contributed to a decrease in the total crypto market capitalization, which currently stands at approximately $2.14 trillion, representing a 1.19% drop.
Bitcoin (BTC) In The Red As West Asia Tensions Mount
Bitcoin (BTC) has dropped nearly 5% due to heightened caution in markets caused by escalating tensions in the Middle East. Today’s trading session saw BTC dip to $60,030, marking a bearish start for October for the world’s leading cryptocurrency. However, analyst Sean McNulty, director of trading at Arbelos Markets, suggests that this dip is merely a temporary response to geopolitical conditions. He also notes that BTC remains optimistic in the long term, as he anticipates further interest rate cuts by the Federal Reserve.
“The seasonal trend of October being the best month for Bitcoin is alive and well.”
However, markets remain extremely cautious for the moment, given the global situation.
Middle East Tensions Hitting BTC Harder Than Traditional Markets
QCP Capital, in a recent market analysis, stated that the impact of current geopolitical tensions is hitting Bitcoin (BTC) and other cryptocurrencies much harder than traditional markets. Despite the escalating Middle East situation, traditional markets like the S&P 500 index closed only 1% lower, while the West Texas Intermediate (WTI) crude oil prices registered an increase of 2%. QCP analysts noted that the crypto markets experienced greater volatility in the same period, with BTC registering a substantial 4% drop. The decline halted only because it found support at the $60,000 mark.
If the situation escalates to a regional war, BTC could drop to $55,000 or even lower.
It appears we’ve seen a bit of resistance around the $60K mark, but if things continue to progress, we might dip down to approximately $55K.
Additionally, QCP delved into China’s present economic condition, drawing parallels to Japan’s deflationary phase during the 1990s. Notably, they highlighted several analogous policy responses, such as interest rate reductions and quantitative easing policies implemented by the People’s Bank of China.
Moreover, there seems to be strong selling activity from some prominent investors in Bitcoin (BTC). As reported by Whale Alert, a whale transferred 3,333 BTC, equivalent to around $213 million, to Coinbase. This move might indicate the whale’s intention to sell the coins and realize profits. Such large transactions can cause short-term market instability and occur at a time when traders anticipate further gains in October.
SEC Appeals Court Ruling
The Securities and Exchange Commission (SEC) in the United States has decided to challenge a court decision that limited its control over regulating the cryptocurrency market. The SEC plans to take this matter to the 2nd US Circuit Court of Appeals in Manhattan, where they hope to have the July 2023 ruling reviewed. This ruling stated that the XRP token sold by Ripple Labs did not meet the legal criteria for being classified as a security. As a result, the sales of the XRP token, valued at approximately $757 million, are currently exempt from investor protection laws enforced by the SEC.
If the appeals court upholds the original judgment, it might limit the Securities and Exchange Commission (SEC) in regulating markets like Coinbase and other defendants offering innovative, non-traditional financial goods to market makers. Simultaneously, Gurbir S. Grewal, the head of SEC’s enforcement division, has announced his departure from the agency next week. While serving, Grewal spearheaded numerous significant enforcement actions in the cryptocurrency sector, focusing on non-compliant platforms and entities as well as insider trading.
Bitcoin (BTC) Price Analysis
During the current trading period, Bitcoin (BTC) aims to climb higher following its stabilization at $60,000. Amidst a week marked by significant bearishness in the markets due to heightened tension in the Middle East, Bitcoin, the leading cryptocurrency, has seen a rush towards safe-haven assets. This bearish trend contrasts expectations for a robust start to what is typically a strong month for the asset. Chris Kline, COO and co-founder of Bitcoin IRA, commented on this situation.
The increasing turmoil in the Middle East has led oil prices to rise significantly and boosted the value of the U.S. Dollar, potentially dimming the outlook for Bitcoin and other risky investments. Unlike Bitcoin’s impressive performance in September, October could present a volatile ride, with factors such as the delayed impact of the spring halving event and the upcoming contentious American election influencing its trajectory.
Over the weekend, Bitcoin’s price reached its highest point on Friday at $66,517, but due to sellers being active at that level, it struggled to maintain momentum. The cryptocurrency only saw a minor increase on Saturday after experiencing high volatility, and by Sunday, it had dipped 0.35% and ended the day in the red. The selling pressure intensified on Monday as Bitcoin fell below its 200-day Simple Moving Average (SMA) and $65,000, losing 3.46% and settling at $63,365. Tensions in the Middle East further dampened market sentiment on Tuesday, causing Bitcoin to drop nearly 4% to $60,874, having earlier touched a daily low of $60,205.
On Wednesday, Bitcoin (BTC) experienced significant fluctuations following a dip to $60,030. The cryptocurrency managed to recover due to strong support at $60,000, reaching a high of $62,455 for the day. However, its upward momentum faltered against the strong resistance at the 20-day Simple Moving Average (SMA). Consequently, BTC dropped by 0.33% and settled at $60,670. In the current trading session, BTC has bounced back after finding support at $60,000, rising by 1.18%, and is now hovering around the $61,400 mark.
In spite of the current situation, large Bitcoin holders (whales) are rapidly amassing more of the asset than ever before. At the same time, there has been a consistent outflow from spot Bitcoin Exchange Traded Funds (ETFs), with around $92 million leaving on Wednesday alone. Optimistic buyers aim to see Bitcoin rebound above its 20-day Simple Moving Average and hope for a surge towards $65,000. On the contrary, pessimistic sellers are trying to push Bitcoin below $60,000. If this level is surpassed, there’s a possibility that Bitcoin could plummet down to $55,000.
Ethereum (ETH) Price Analysis
Over the past week, I’ve witnessed a steep decline in the value of my Ethereum (ETH) investment. It dipped below crucial support levels and both the 20 and 50-day Simple Moving Averages (SMAs). The bearish trend intensified over the weekend, with ETH dropping by 0.73% on Saturday and a further 0.67% on Sunday, leaving me with a balance of around $2,659. As the new week began, the bearish sentiment didn’t subside; ETH fell by 2.11% on Monday to reach $2,603. Investors tried to reclaim some ground on Tuesday, but unfortunately, the overall market conditions were not in our favor. Consequently, my Ethereum dropped almost 6%, slipping below $2,500 and the 20 and 50-day SMAs, ending the day at approximately $2,448.
On Wednesday, buyers made an effort to surpass $2,500 as ETH reached its peak for the day at $2,499. Yet, the strong force of sellers prevented a breakthrough, causing ETH to fall below the significant $2,400 mark. Eventually, ETH closed at $2,365 following a 3.40% drop. Currently, buyers are attempting to raise the price back towards $2,400. In the near future, it’s crucial for ETH to recover $2,400 to avoid further declines. If it fails to do so, the price might dip to $2,200 or lower. However, if ETH can break above $2,400, its next goal will be $2,500. A successful push beyond these levels and the 20 and 50-day moving averages would suggest that buyers remain active and are not yet overpowered by recent selling pressure.
Despite rising turbulence, falling prices, and Bitcoin ETFs experiencing substantial withdrawals, Ethereum ETFs have demonstrated strength, attracting investments totaling $14.45 million.
Solana (SOL) Price Analysis
Solana (SOL) is aiming to bounce back from its recent downturn as markets gradually stabilize following three consecutive days of substantial drops. SOL aims to regain momentum and retake the $150 mark. Despite a bullish trend the week prior, momentum started dwindling over the weekend. With solid resistance at $160, SOL dipped on Saturday, sliding to $156 after a minor decrease. However, SOL did rebound on Sunday, failing to break through $160 but still managing to close the week at $158 after a 1.10% rise.
On Monday, Solana (SOL) began the week on a bearish trend, plummeting almost 4% and falling below its 200-day Simple Moving Average (SMA), ending the day at $152. The negative market climate continued into Tuesday, causing SOL to plunge nearly 5%, dropping beneath $150 and settling at $145. A recovery attempt was made by buyers on Wednesday as SOL reached a daily peak of $148, but the bulls lost their momentum, allowing sellers to regain control. As a result, SOL dipped by 3.44%, falling below its 50-day SMA and settling at $140. Currently, the bearish sentiment persists as SOL has fallen below the $140 level and is trading around $138. If sellers maintain control, SOL may drop to $130. Conversely, buyers will look for an opportunity to recover and push SOL back above $140.
Toncoin (TON) Price Analysis
Toncoin (TON) has exhibited a bearish trend since the weekend, following its recovery peak on Friday when it reached a daily high of $5.81 and attempted to push towards $6. However, buyers’ momentum waned as the 200-day Simple Moving Average served as a formidable resistance level. By Saturday, TON had moved into bearish territory, dipping by 1.47% on that day and an additional 1% on Sunday, closing the weekend at $5.84. The current trading week started with sellers maintaining control, causing TON to drop by more than 2%, falling below the 50-day SMA and settling at $5.71.
On Tuesday, there was increased selling activity causing TON to decrease by 6.10%, falling below its 50-day Simple Moving Average, and its support level dropping from $5.50 to $5.36. The downward trend continued on Wednesday as the price fell by 1.06% to $5.30. Although buyers made an effort to recover, they were unable to do so, with sellers pushing TON back down after it reached a daily high of $5.50. Currently, TON is still in the red, having dropped almost 2%, and trading around $5.20. If buyers maintain control, TON may drop further to $5, a level that might attract new buyers and potentially allow for a price recovery.
Uniswap (UNI) Price Analysis
Over the weekend, Uniswap (UNI) experienced a halt in its rise towards $8 due to increased volatility, causing it to drop on Saturday. This was followed by a more significant decline on Sunday as bears continued their dominance, resulting in UNI dropping 1.98% and settling at $7.46. The ongoing volatility in the new week saw UNI attempt a recovery, reaching a high of $7.74, but sellers quickly pushed it back down to $7.39.
Once more, UNI tried to break through $8 on Tuesday, but with the market trending negatively, sellers successfully drove UNI lower yet again. This time, it dipped by approximately 7%, falling below the 20-day Simple Moving Average (SMA) to $6.90. This decline also marked the first time UNI fell below $7 since early September. Volatility and a bearish mood continued on Wednesday, causing UNI to drop another 3.28% to $6.67. The current session has seen increased selling pressure as markets continue to fall, with UNI now dipping beneath the $6.50 support level. At present, it’s down nearly 4% to $6.42. Given that sellers remain in control, UNI might drop to $6 or even lower towards the $5.50 support level.
Aptos (APT) Price Analysis
Despite the general market downturn, APT has bucked the trend by experiencing significant growth in recent trading sessions. Yet, it’s important to note that APT is experiencing considerable volatility, as evident in its price chart. On Friday, APT hit a peak of $8.58, but as the 200-day Simple Moving Average (SMA) served as a resistant level, it dipped into negative territory over the weekend, declining approximately 5% on Saturday. A slight uptick on Sunday kept APT from ending the weekend in the red. However, sellers reentered the market on Monday, causing APT to fall by more than 5%, settling at $5.67.
On Tuesday, the value of APT, an altcoin, experienced exceptional fluctuation due to unfavorable market circumstances affecting its price, reaching a peak of $8.37 and a trough of $7.24 before closing at $7.56 with a 1.45% decrease. However, the 20-day Simple Moving Average (SMA) served as a supportive level, causing APT to recover slightly, resulting in an increase of over 3% on Wednesday and ending the day at $7.79. As we speak, APT is up by 3.09%, aiming to surpass the 200-day SMA and the $8.50 price mark.
Optimism (OP) Price Analysis
Optimism (OP) has had an incredibly bearish week, with the altcoin giving up almost all the gains made last week. After surging to $1.90, OP’s momentum stalled as it dropped by 1.02% on Saturday and settled at $1.88. The price recovered on Sunday, registering an increase of 1% to end the weekend on a positive note at $1.90. However, sellers took control as the week began, and OP tanked by almost 8%, dropping to $1.75. Buyers attempted a recovery on Tuesday as OP reached a day high of $1.87. However, with the crypto markets turning bearish, OP fell back, eventually settling at $1.66 after a drop of just over 5%.
On Wednesday, OP fell below its 20-day Simple Moving Average (SMA), decreasing by about 5% and ending at $1.58. Presently, the price is dipping further by 2.27%, currently standing at $1.55. The key support levels for OP are at $1.50, and its 50-day SMA also serves as a significant level of support. For any prospect of reversal, buyers need to keep OP above these critical points. If buyers regain control, OP might attempt to rise again over the 20-day SMA.
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2024-10-03 16:08