As a seasoned trader with over two decades of experience under my belt, I’ve seen markets ebb and flow like the tides. Watching the current state of SOL, ADA, BCH, DOGE, and MKR is akin to observing a rollercoaster ride in slow motion.
As a researcher studying the Bitcoin market, I observe that its mood swings persistently, with the unpredictable price fluctuations from this month showing no signs of abating. Interestingly, Bitcoin plummeted to a six-month low before staging a swift recovery.
Currently, the positive outlook for BTC is facing challenges. Some financial experts predict that Bitcoin’s value might decline to around $52,000 due to deteriorating U.S. economic data and shifts in the Bitcoin options market, which could exacerbate its price instability.
As a crypto investor, I’m observing that at this moment, Bitcoin is hovering slightly above the $59,000 mark. Over the last day, it’s displayed a growth of approximately 1.25%.
A Battle Between Bulls And Bears
In a turbulent crypto market, particularly for Bitcoin (BTC) and other major digital currencies, it’s a battlefield between optimists (bulls) and pessimists (bears). Yet, numerous aspects could influence price fluctuations, including unexpected events. One significant factor to watch is the US economic data, specifically the Consumer Price Index (CPI), due for release on August 14. This data point will be closely monitored by analysts amidst debates and uncertainties about the Federal Reserve’s approach towards global market instability. It’s worth noting that the CPI announcement follows the Producer Price Index release a day prior, with key employment statistics to be released at the end of the week.
In unfortunate timing for traders, recent data on Consumer Price Index (CPI) and Producer Price Index (PPI) could potentially stir up the ongoing US inflation debate, increasing the pressure on the Federal Reserve to possibly lower interest rates in September. The Kobeissi letter suggests this week is set to be a busy one with several key events. Given the predicted further drop in CPI, it seems likely that the Fed will take this into account and consider implementing a rate cut. According to Charlie Billelo, chief market strategist at Creative Planning, oil prices could influence the Fed’s accommodative stance.
As a consumer who has experienced fluctuating gas prices over the years, I can tell you that a 10% decline in the national average price of gas from $3.82 per gallon to $3.45 per gallon is definitely something to be celebrated. This drop in gas prices could potentially have a significant impact on my household budget, allowing me to allocate more funds towards other necessary expenses or even save for future plans.
Economic Downturn A Risk For BTC
Bitcoin (BTC) traders are pondering whether cryptocurrency might revisit its $49,000 low, considering the decreasing enthusiasm for leveraged BTC long positions and the potential for a stock market correction worldwide. JPMorgan analysts have also boosted the likelihood of an economic downturn in the U.S., attributing it to poor labor market conditions and the Fed’s tight monetary policy. Federal Governor Michelle Bowman mentioned on August 10 that inflation risk remains high, and the job market continues to be weak, diminishing the possibility of a September interest rate reduction.
Bitcoin (BTC) Price Analysis
As a crypto investor, I find myself watching the price of Bitcoin (BTC) closely as it hovers just below the $60,000 mark, struggling to rebound to this level so far, despite a small recovery on Monday. Bulls have tried to push the price above $60,000, but with heightened volatility, traders remain tense and on high alert. The Crypto Fear and Greed Index, which plunged to 17/100 on August 6, recovered slightly on August 9, but has since slid back into the fear zone, standing at 25/100 on August 12. Currently, it’s at 31/100, suggesting that a bearish sentiment still dominates the market. The question on everyone’s mind is whether BTC can recapture the $60,000 price level. At this point, the outlook remains uncertain. Spot Bitcoin ETFs have seen significantly reduced inflows in recent days, indicating investor uncertainty. Moreover, according to LookOnChain, institutions have stopped stablecoin purchases, adding to the negative sentiment surrounding the market.
In the graph provided, Bitcoin (BTC) experienced a dip to $49,351 last Monday, but bounced back swiftly amidst increased market turbulence. Investors reached an intraday peak of $57,833 before sellers intervened, pushing it down to $55,144. Remarkably, BTC surged by 12% on Thursday as the market grew optimistic, reaching $61,763. However, this growth was halted at the 200-day Simple Moving Average (SMA), which served as a significant resistance point. Consequently, the price trend shifted to bearish on Friday, falling to $60,932. Despite this, buyers ensured that BTC remained above the $60,000 mark.
As a researcher observing the Bitcoin market, I noticed an intriguing pattern over the past few days. Last Sunday saw a significant drop in BTC‘s value by nearly 4%, reaching $58,775. The market’s volatility was starkly evident on Monday, with BTC touching an intra-day high of $60,749 and a low of $57,724. Despite this turbulence, BTC recorded a 1.08% increase and closed at $59,410 for the day. However, surpassing the $60,000 price level seemed challenging under current conditions, with BTC experiencing minor losses during the ongoing session. If BTC manages to hold its ground above $59,000, there could be an attempt to break through the $60,000 barrier. A robust breakout above both the $60,000 and $62,000 price levels might suggest a reversal and signal the end of the current downtrend.
Despite the firm bearish trend in Bitcoin (BTC), it’s encountering stiff resistance at around $60,000 and $62,000. If BTC falls below its current position, there’s a possibility it might slide under $57,000. A drop below this level could speed up the downward trend towards $50,000, potentially testing its previous support at $49,000.
Ethereum (ETH) Price Analysis
Currently, Ethereum (ETH) is struggling to break through the $2,700-$2,800 price range, as sellers aggressively protect the upper levels. However, a support level has formed around $2,500, keeping ETH from falling below this point thanks to the bulls’ efforts. After a significant dip that took ETH down to $2,131 on August 5, it bounced back strongly and surpassed $2,500 on Thursday following a nearly 15% increase, reaching $2,684. Yet, the momentum of this recovery waned as markets began to trend negatively on Friday. As such, ETH dropped by more than 3% to $2,601. The weekend saw mixed results for ETH, with a slight rise on Saturday followed by a 2.09% drop, ending the weekend at $2,556.
On Monday’s market rebound, Ethereum (ETH) experienced a 6.52% surge, reaching over $2,700 and settling at $2,723. Yet, as sellers hold the upper hand, ETH has slid back into negative territory during the current trading session, dropping nearly 3% to $2,648. For Ethereum to potentially break above the $2,700-$2,800 range, buyers need to ensure it remains above $2,500. Sellers are poised to aggressively defend this level. If buyers manage to surpass them, a possible move towards $3,000 could occur. Conversely, if ETH falls from the $2,800 level, it may slide back down to $2,500. Should sellers successfully breach the $2,500 support level, a potential drop towards $2,200 might ensue.
Solana (SOL) Price Analysis
Solana (SOL) aims to regain the $150 price point amidst increasing bearish sentiments. On Thursday, an impressive surge of nearly 13% propelled SOL past the $160 mark, reaching a high of $163. Yet, the coin turned bearish on Friday, with significant selling pressure causing it to slide by over 4% to $156. The downtrend persisted on Saturday as well, resulting in a further drop of 1.48%, leaving SOL at $154.11, barely above its 50-day moving average.
On Sunday, the value of SOL dipped below $150 due to growing pessimism, causing a 8.12% drop to $141.59. However, on Monday, there was a 4.79% rise to $146.38 as buyers tried to push the price above $150. Yet, strong selling pressure kept SOL from rising, as depicted in the chart. At present, the session is seeing a slight decrease as both buyers and sellers vie for control. Notably, bulls have yet to surpass the moving averages, suggesting that sellers currently hold the upper hand.
If the sellers dominate, they might pull SOL towards the $130 support. If this level is broken, SOL might fall to $110. But buyers are likely to defend these levels as a break could signal increased selling pressure that could push SOL below $100. Now, if the buyers regain control, SOL will aim to recover the $150 and $155 price points. Breaking above both of these could lead to an attempt to surpass $160.
Cardano (ADA) Price Analysis
On Thursday, Cardano (ADA) experienced a significant surge, reaching $0.35 following an 8.32% increase. However, the price showed signs of bearishness after peaking at this level, suggesting heavy selling during rallies. The bears drove the price down to an intraday low of $0.337 on Friday, but buyers managed to lift it back up to $0.349. This marked a minimal decrease in comparison to Thursday’s close. On Saturday, ADA experienced another minor decline, and sellers took control when the price failed to break through the resistance at $0.35 once again, causing the price to drop by 5.20% to $0.328. However, on Monday, ADA saw a recovery, rising by 3.66% to $0.340.
Despite currently experiencing a loss of around 1% during the ongoing session, sellers aim to lower ADA‘s value towards approximately $0.30. If ADA falls below this level, it might further decrease to $0.25. However, if buyers manage to regain control and push ADA above $0.35, it suggests that sellers are losing power, potentially causing ADA to rise to around $0.40.
Bitcoin Cash (BCH) Price Analysis
Bitcoin Cash (BCH) has shown remarkable resilience amid various potential price-deterrent factors. Despite a challenging period during the recent market slump, this alternative coin has seen nearly a 9% increase in value. Remarkably, it has bounced back well, even with Mt. Gox payments associated with BCH not causing significant negative effects on its value. Over the past few days, BCH has been traded between $300 and $370, encountering robust resistance at higher levels. On Thursday, BCH demonstrated a strong comeback, surging over 13% to reach $353. Buyers managed to drive the price up to an intraday high of $371, but sellers eventually pushed it back down.
As an analyst, I observed a fluctuating trend for BCH over the weekend. On Friday, the price dipped by 1.47% before experiencing a 2.01% surge on Saturday, reaching $354. However, Sunday saw a bearish turn, with BCH falling approximately 7% to settle at $329, just below the $350 mark. A swift recovery occurred on Monday, allowing BCH to recover its losses and reach $355, a 7.69% increase.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) hasn’t managed to significantly break past $0.100 due to strong resistance at $0.110, causing a significant sell-off. A 12% increase on Thursday was quickly followed by selling pressure at higher levels, leading to a bearish trend and DOGE dropping nearly 4% on Friday. There was a slight recovery on Saturday, but the price soon fell again, declining by about 4.17% to $0.101. Despite the selling pressure, buyers have managed to keep Dogecoin’s value above $0.100.
On Monday, Dogecoin experienced a notable rebound, increasing by approximately 6.44% to reach $0.107. Yet, attempts to surpass $0.110 were unsuccessful for the buyers. Currently, Dogecoin is nearly 3% lower, trading at around $0.104. If buyers manage to push Dogecoin above $0.110, we might expect the price to potentially rise towards $0.120. Conversely, a reversal and a fall below $0.100 would imply that sellers are dominating the market.
Maker (MKR) Price Analysis
In simpler terms, the cryptocurrency Maker (MKR) is finding it tough to reach $2,000 again as sellers are trying to push the price down towards $1,800 and below. Previously, MKR experienced heavy bearish pressure that caused its price to plummet from around $2,700 to a low of $1,757 on Wednesday. However, on Thursday, MKR saw a 14% surge and managed to surpass $2,000, reaching $2,052. But due to high selling pressure, the price fell back to $2,006 on Friday. The downward trend continued over the weekend with a drop of 1.59% on Saturday and 4.45% on Sunday, leaving MKR at $1,886.
As a seasoned trader with over a decade of experience, I have seen my fair share of market volatility and trends. Based on my analysis, the past week started off promising for MKR as it made a significant recovery, climbing nearly 7% to surpass $2,000 and settling at $2,017. However, during the current session, sellers have regained control, causing the price to dip by more than 1%, putting MKR at $1,995.
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2024-08-13 13:09