As a seasoned trader with years of experience navigating the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. This week has been no exception, with Cardano (ADA) taking a tumble due to formish sentiment that seems to have swept across the markets. ADA’s current downtrend is concerning, but I’ve learned not to panic during these periods. Instead, I wait for the market to stabilize and then consider buying the dip if analysts’ optimistic predictions hold true.
The cost of Bitcoin (BTC) has dropped below $65,000 due to renewed geopolitical conflicts, particularly in the Middle East where tensions are escalating towards a potential larger dispute after Iran allegedly retaliated against Israel. This development has caused investors to become nervous, leading to a downturn in prices.
Prior to a recent decline, Bitcoin enthusiasts anticipated reaching $70,000, but aggressive sellers resisted at the higher boundaries of Bitcoin’s trading band. Analysts focused on the significance of the $69,000 mark, as they thought it was essential for bulls to transform it into a support level if the asset were to surpass $70,000 and potentially $72,000.
Bitcoin (BTC) Sees Significant Drop Amid Middle East Tensions
On Wednesday, Bitcoin fell short of recovery when it dipped below the $65,000 mark to reach $64,671. This decline occurred as geopolitical tensions escalated in the Middle East, causing investors to redirect their focus following the conclusion of the July Federal Reserve meeting. Similarly, significant drops were observed in other major cryptocurrencies like Ethereum (ETH), Solana (SOL), Cardano (ADA), Avalanche (AVAX), and others. The main cause for this selloff appears to be reports suggesting that Iran’s leadership ordered retaliatory airstrikes on Israel, increasing concerns about potential wider conflict in the Middle East.
During the morning hours, the Federal Reserve opted not to adjust benchmark interest rates and provided minimal hints suggesting an anticipated rate reduction in September is certain. Chair Jerome Powell clarified that no decisions concerning a rate cut have been finalized yet; however, it appears we are edging towards lowering rates.
If inflation continues to decrease as anticipated, economic expansion stays robust, and the job market aligns with current trends, I believe there’s a good chance that an interest rate reduction might be considered during the meeting in September.
During the day, digital assets experienced losses contrasted with growth in traditional counterparts. The yield on the 10-year US bond dropped by a tenth of a percent, and gold climbed 1.5%, reaching $2,450, close to its all-time high. WTI crude oil prices jumped by 5%. Equities also recorded substantial gains, with NVidia leading the way at an increase of 12%.
BTC Needs A Trigger
Bitcoin (BTC) requires a significant catalyst to break free from its current price band, which it has been stuck in for approximately five months. Some analysts are optimistic that once this occurs, Bitcoin could exceed $100,000 by year-end. On the other hand, some analysts predict that Bitcoin will reach $100,000 as late as 2025, attributing this to the idea that the massive US national debt of around $35 trillion will accelerate Bitcoin adoption.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is currently experiencing substantial selling activity as a result of escalating tensions in the Middle East and the Federal Reserve’s decision to maintain its interest rate at 5.25-5.50%. This decline, amounting to a 2% drop, continues BTC’s corrective phase that was anticipated by analysts who expected BTC to recover from the $65,000 support level. Unfortunately, bears managed to break through this level, pushing BTC down to $64,671. Notably, BTC has been in a negative trend since Monday, when it experienced a firm rejection at the $70,000 price point.
Initially, Bitcoin started Monday with an uptrend towards $70,000. Yet, it quickly turned bearish upon reaching that mark due to aggressive selling, causing the price to fall. This downward trend continued, resulting in a 2.12% decrease, ending the day at $66,810. The bearish trend persisted on Tuesday, causing Bitcoin to dip by 0.83%, closing at $66,252. On Wednesday, analysts predicted a recovery around $65,000, with the 20-day Simple Moving Average pointing upwards. However, the bears might overpower this level as Bitcoin dropped below $65,000 and the 20-day SMA, ending at $64,671. Currently, Bitcoin is still in the red, having been pushed down to a low of $63,578. However, it has managed to bounce back from this level and is now trading at $64,305.
Should Bitcoin regain its present value, there’s a possibility for it to recapture the $65,000 mark and potentially surge towards $70,000 again. Conversely, if the price takes a dive, this might signal that traders are cashing out at elevated prices.
Ethereum (ETH) Price Analysis
Over the past month, Ethereum (ETH) has seen a 8% drop in value, with its price sliding further. Traders are now looking towards the $3,000 level as a potential target. To start the week, ETH saw a bullish trend due to increased buying activity, pushing it beyond both the 20-day and 50-day Simple Moving Averages (SMAs), aiming for $3,500. However, ETH was unable to hold onto these gains at $3,400, causing the price to fall back below the 20-day and 50-day SMAs, ending the day at $3,319 – a mere 1.19% increase. On Tuesday, Ethereum experienced significant selling pressure, dipping to a daily low of $3,195 before buyers regained control somewhat, finishing the day at $3,280 – a decrease of 1.17%. Despite the bearish outlook, ETH managed to recover slightly.
On Wednesday, buyers made efforts to boost Ethereum (ETH) past $3,400, yet failed once more as sellers regained control and forced the price down to $3,200. At present, ETH is experiencing a nearly 2% decline and has lost its critical $3,200 level. If selling pressure persists, ETH might slide to $3,000 or its traditional support at $2,850. The question remains: what factors could propel Ethereum back to the heights of $4,000, a point it reached in March?
As a researcher, I’ve noticed that the crypto market has been experiencing a lull lately, and Ethereum (ETH) seems to be grappling with its own set of challenges. The initial excitement surrounding Spot Ethereum Exchange-Traded Funds (ETFs) appears to have subsided, as these investment tools have seen substantial outflows, which has negatively impacted the overall sentiment. Moreover, the Total Value Locked (TVL) in the Ethereum network remains relatively static, currently hovering around 17.8 million ETH, a figure that hasn’t significantly changed over the past two months. If Ethereum is to regain its $4,000 mark, it needs to pique the interest of institutional investors. An increase in such investment would likely be mirrored by an uptick in spot ETH ETF inflows or at least a slowdown in outflows.
Solana (SOL) Price Analysis
Over the past four days, Solana (SOL) has been on a downward slide, falling below the significant $170 mark. After showing promising bullish tendencies at the start of the week, SOL failed to maintain its momentum and has now wiped out all gains made in the preceding week due to losses throughout this week. In the last 24 hours alone, the cryptocurrency has plummeted by approximately 8%. Let’s examine its price chart.
On Sunday, SOL closed at $185 and started Monday on a strong upward trend, aiming for $200. However, SOL peaked at $194 but couldn’t break through due to heavy selling activity. Consequently, it dipped significantly and ended the day at $182.65, losing 1.30%. The bearish trend persisted on Tuesday, with SOL decreasing almost 2% to $179.25. Attempts for a rebound were made on Wednesday, pushing SOL up to $184, but the momentum wasn’t maintained. As a result, it plummeted by 4.18% and closed at $171. The current trading session has seen SOL drop by nearly 2%, losing the $170 level, with the current price standing at $168.66.
In simpler terms, if Solana (SOL) bounces back from its present value, traders might try to regain the price point of around $170. But should selling activity persist, there’s a chance that Solana’s price could dip down to approximately $150.
Cardano (ADA) Price Analysis
Since reaching $0.451 on July 22, Cardano (ADA) has been on a steady decline due to increasing pessimism. By July 25, this negative sentiment had pushed ADA below the $0.40 mark, down to $0.395. However, on Friday, there was a significant rebound, with ADA rising by nearly 6%, peaking at $0.418. Unfortunately, over the weekend, bearish trends resumed, causing ADA to dip again, closing at $0.403 on Monday. This downward trend continued on Tuesday and Wednesday, with ADA falling below the $0.40 support level once more, reaching a low of $0.387 on Wednesday. As of now, ADA is experiencing a 0.77% decrease, firmly in bearish conditions.
Should the present trends continue, the value of ADA may continue falling. If selling pressure remains high, ADA could dip down to around $0.35 or even as low as $0.30 – a potential yearly minimum for this asset. Nevertheless, analysts remain positive and advise traders to seize the opportunity presented by the current dip, predicting a robust recovery for the asset from its current levels.
Ripple (XRP) Price Analysis
Over the course of this week, Ripple (XRP) has bucked the broader market trend, experiencing a notable surge even amidst persistent bearish sentiments. Following several days of relatively stable prices that hovered around $0.60, XRP ended the weekend with a 1.01% increase. After experiencing considerable volatility on Monday, XRP saw a steep rise on Tuesday, climbing by 4.27% and finishing at $0.62.
Initially, XRP started Wednesday strong, climbing over $0.65 due to buying activity. Yet, as sellers emerged at higher prices, XRP retreated, ending the day at approximately $0.623 following a 0.72% decrease. The ongoing trading session shows XRP declining by about 2.37%, with sellers currently dominating the market. Despite the continuous selling pressure, XRP managed to stay above $0.60 after briefly touching a low of $0.596 during the day.
Toncoin (TON) Price Analysis
During the week, Toncoin (TON) experienced a slight surge, climbing above $6.60 due to strong buying activity. By the end of the weekend, TON was trading at $6.63. Buyers continued to exert pressure on Monday, pushing the price up towards $7, but sellers managed to maintain that level, causing TON to dip and close the day back at $6.63. However, TON bounced back on Tuesday with a 1.82% rise, reaching $6.75. A minimal increase on Wednesday propelled TON further up to $6.77. In the current trading session, sellers have tried to pull down TON towards $6.50, but buyers have held their ground against the selling pressure, resulting in a slight recovery. Currently, Toncoin is trading at $6.81 with a 0.57% increase.
If the trend for TON remains positive, it might strive to reach approximately $7 and surpass its 20-day Simple Moving Average (SMA). This situation could pave the way for a potential rise towards $7.50. Conversely, if the market sentiment becomes negative, TON may slide down to around $6.50.
PEPE Price Analysis
As a seasoned cryptocurrency investor with over a decade of experience in the market, I have witnessed countless ups and downs, bubbles, and crashes. The latest development with PEPE has caught my attention due to its rapid rise and subsequent plunge this week. Having learned from past experiences, I can’t help but see some similarities between this meme token and other cryptocurrencies that have seen meteoric rises followed by dramatic falls.
If sellers manage to surpass this point, the PEPE token might experience a substantial decrease, potentially dropping down to approximately $0.0000080 (its 200-day Simple Moving Average). Conversely, if the price recovers, it could initiate a recovery phase that might propel the price back up towards $0.000015.
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2024-08-01 14:04