As a seasoned trader with over two decades of experience under my belt, I find it fascinating to observe the dynamic movements of these digital assets. Let’s delve into our analysis, shall we?
On Tuesday, Bitcoin (BTC) momentarily soared past $61,000 but swiftly dropped due to strong selling activity, causing the price to drop back towards $60,000. The persistent selling pressure has pushed BTC below $60,000, and the cryptocurrency is now being traded around $59,500 in current market conditions.
On Tuesday, there was a significant upward trend in the cryptocurrency market as all major digital currencies experienced growth. But recently, the market has become turbulent, causing most coins to lose value currently. The upcoming minutes from the Federal Reserve meeting and the Jackson Hole symposium are significantly impacting the current crypto landscape, leading traders to adopt a cautious stance.
Crypto Markets Await Federal Reserve Comments
The minutes from the Federal Reserve’s meeting in July will be published on Wednesday. On Thursday, the Jackson Hole symposium will take place, and traders are eagerly awaiting this annual economic event for potential insights into future interest rates. The Federal Reserve Chair, Jerome Powell, is set to speak at this gathering. Market predictions suggest a rate cut in September, although the possibility of a 0.5% reduction has decreased to 28.5%, as per CME’s FedWatch.
At the gathering in Jackson Hole, Wyoming, I find myself braced for remarks from Federal Reserve Chair Jerome Powell suggesting interest rate reductions, as both Wall Street and the crypto market seem to share this expectation. Yet, investors are still mulling over last week’s unexpectedly robust US retail sales figures for July and decreasing initial unemployment claims. These encouraging statistics have helped alleviate worries about the resilience of the US economy, providing a much-needed boost to global stocks. Nevertheless, there’s speculation that Powell may opt to maintain silence on the exact timing of the rate cut.
Impact On Crypto
As someone who has been closely following the crypto market for several years now, I must say that this week has been a rollercoaster ride so far. I remember when Bitcoin was trading at just a few thousand dollars and Ethereum was barely a blip on the radar. Now, seeing these same cryptocurrencies reach new heights only to plummet again due to selling pressure is both exhilarating and nerve-wracking.
As an analyst, I’ve observed some intriguing exceptions in the cryptocurrency market. Specifically, Ripple (XRP) has seen a 4% increase, Tron (TRX) has surged by an impressive 22%, Cardano (ADA) is up nearly 6%, and Polkadot (DOT) has almost doubled with a 2% rise.
Institutional Ownership Of Bitcoin ETFs Up
During the last quarter, ownership of Bitcoin ETFs by institutions rose to 24%, a substantial increase from the 21.4% seen in the previous quarter, even as BTC prices fell and market conditions remained tough. Data and filings suggest this trend. Notable institutional investors in these spot Bitcoin ETFs include Goldman Sachs, with $412 million invested in ETF shares, and Morgan Stanley, holding $188 million in ETF shares. On August 19 alone, spot Bitcoin ETFs experienced inflows of over $61 million, despite Bitwise’s BITB and Invesco Galaxy’s BTCO experiencing substantial outflows.
Bitcoin (BTC) Price Analysis
On Tuesday, Bitcoin (BTC) briefly surged past $61,000, driven by increased network activity and heightened derivatives market action. Additionally, the upcoming speech from Federal Reserve Chair Jerome Powell contributed to a price increase. Nevertheless, it failed to maintain this level and dipped back under $60,000 during the same day. Despite an overall positive start to the week, Bitcoin has shown mixed performance. It experienced a 1.20% growth on Saturday, but fell into negative territory on Sunday when buyers were unable to keep up momentum due to the 20-day Simple Moving Average serving as a dynamic resistance level. As a result, Bitcoin dropped approximately 2% on Sunday, slipping below $59,000 and settling at $58,492.
On Monday, Bitcoin (BTC) experienced a 1.73% rise to reach $59,501 due to strong underlying demand. Despite this, it failed to surpass its 20-day Simple Moving Average (SMA). The following day, BTC managed to break both the 20-day SMA and the $60,000 threshold, thanks to a price spike caused by heightened network and derivatives market activity. This surge pushed Bitcoin to an intraday high of $61,402. However, the upward momentum waned as the price was resisted at the 50-day SMA, giving sellers the upper hand. Consequently, BTC fell back below its 20-day SMA but held above $59,000, ending the day at $59,068. Currently, Bitcoin is up by nearly 1% and trading at $59,650.
Could we anticipate Bitcoin surpassing the $60,000 mark again? This possibility hinges on the minutes from the Federal Reserve’s July meeting and Jerome Powell’s speech at the Jackson Hole symposium. If his speech positively impacts the market, Bitcoin might regain its position above $60,000 and confront resistance near its 50-day Simple Moving Average (SMA). Overcoming this resistance could lead to a test of $62,000. Conversely, if selling pressure grows, Bitcoin may become bearish and dip towards $58,000. Sellers are expected to hold the line at these levels.
Ethereum (ETH) Price Analysis
Even though Ethereum (ETH) briefly reached $2,697 on Tuesday before sellers took over, this suggests high selling pressure near the $2,700 mark. As we observe from the daily chart, neither buyers nor sellers have managed to gain control and drive price action. Since dropping below $2,700 on August 12, Ethereum has been struggling to regain momentum, with buyers failing to make a significant push towards higher prices. However, they have successfully kept ETH above the $2,500 level, suggesting strong support at this point. In the last few days, ETH has shown little volatility; it rose by 9.93% to reach $2,594 on Friday and had a slight additional increase on Saturday, settling above $2,600 at $2,614.
On Sunday, a push towards $2,700 didn’t occur as sellers managed to pull the price down from its peak of $2,684. Sellers tried to drive Ethereum lower on Monday, but buyers stepped in and took control, pushing ETH up to $2,639 after a 1% increase. Buyers made a powerful attempt to break above $2,700 on Tuesday as ETH reached an intraday high of $2,697. However, with sellers aggressively defending this level and the 20-day Simple Moving Average also playing a role, optimism faded, causing ETH to drop by 2.44% to $2,574. Currently, Ethereum is nearly 1% up and trading at $2,599.
Currently, Ethereum is moving within a tight band, bouncing between the $2,500 floor and the $2,700 ceiling. For any significant price increase, Ethereum needs to surpass its 20-day Simple Moving Average (SMA) and the $2,700 mark. Additionally, buyers should safeguard the $2,500 support point, as a drop below could potentially push ETH down to $2,200.
Solana (SOL) Price Analysis
On Tuesday, Solana (SOL) struggled to reach $150, despite strong efforts from buyers, due to a significant amount of selling activity at that price point and the 200-day Simple Moving Average (SMA) acting as a formidable resistance level. SOL’s upward momentum faltered since August 8, when its value peaked at $163. The buying pressure weakened, causing the price to dip below both the 50 and 200-day SMAs, settling at $141. Attempts to push SOL back up to $150 were unsuccessful due to the influence of the 200-day SMA, and instead, the value dropped to $139 by Friday as selling pressure increased further.
Despite the support, purchasers managed to enter the market, causing Solana (SOL) to regain $140 after a 2.04% rise that took it to $141. On Sunday, buyers aimed for $150 but failed. Consequently, SOL dropped from its high of $147 to $142, a minimal increase of 0.37%. On Monday, buyers maintained control, pushing SOL up by 1.35%. Again on Tuesday, buyers made another attempt to surpass $150 as SOL reached $148.91. However, sellers counteracted and pushed the price below the 20-day moving average to $142. Currently, both buyers and sellers are vying for control with the price standing at $142.
To regain previous prices seen before August 5, buyers need to push prices beyond $150. Yet, given that sellers are active, they should also be vigilant in maintaining the $140 support zone. A drop below this level could potentially pull Sol’s price down to $130 or possibly lower.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) maintained its positive momentum at the beginning of the week, with the well-known meme coin continuing its climb. The price of DOGE might experience additional growth after it was revealed that DOGE miners have amassed approximately 140 million DOGE over the last twenty days. Over the past few weeks, Dogecoin has been in a phase of consolidation. Although sellers have tried to push DOGE below $0.100, the coin’s support has remained strong, with buyers preventing it from falling below its crucial level of support.
Dogecoin (DOGE) has made a strong comeback, recovering from its intraday low of $0.098 on Thursday. By Saturday, it had risen above $0.100 to settle at $0.102. On Sunday, sellers tried to push DOGE below $0.100, but they failed despite reducing the price by 2.05%. However, buyers regained control on Monday, causing a 1.60% increase in DOGE to $0.101. The momentum continued on Tuesday, allowing DOGE to surpass its 20-day Simple Moving Average (SMA) and settle at $0.101. Currently, the session shows DOGE trading at $0.104 with a growth of 0.68%.
Ripple (XRP) Price Analysis
To start the week, Ripple (XRP) showed significant progress, struggling earlier to gain traction and surpass its 20-day Simple Moving Average (SMA). Since August 13th, the altcoin experienced minimal price fluctuations with neither side managing a substantial impact. The 20-day SMA served as a resistance level, thwarting an advance towards $0.60, while $0.55 held as a support level for buyers. This situation began to shift on Sunday when buyers made a concerted effort to reach $0.60, but lost steam as XRP neared higher price points, giving sellers the upper hand once more. Consequently, XRP fell by 0.49%, settling at $0.56.
As someone who has been closely following the cryptocurrency market for over a decade now, I have seen my fair share of ups and downs. This week started off with a surge in XRP, pushing it past its 20-day Simple Moving Average (SMA) by 6.32%. The buyers seemed to be firmly in control, but as I’ve learned from experience, nothing is ever certain in the world of cryptocurrencies.
Uniswap (UNI) Price Analysis
After struggling to surpass its 20-day Simple Moving Average (SMA) on Friday, Uniswap (UNI) managed to break past that mark yesterday. Following a significant rise of approximately 4.92% on Friday, which took UNI’s price up to $6.51, it failed to maintain this momentum and couldn’t push above the 20-day SMA. Instead, it dipped over the weekend, falling by 1.48% on Saturday and a further 3.76% on Sunday, bringing its closing price down to $6.17. Sellers were trying to pull UNI below the $6 support level, but buyers stepped in with strong demand at lower levels, pushing UNI back up to $6.20 by Monday.
On Tuesday, there was an effort among buyers to push the price of UNI above its 20-day Simple Moving Average (SMA), which peaked at $6.47 intra-day. Yet, sellers managed to drive the price below this moving average down to $6.26.
In this ongoing trading period, the price of UNI is climbing more than 2% as traders aim to surpass the $6.50 mark again. If UNI successfully breaks and ends its day above $6.50, traders might try to push it towards $7. Yet, sellers are likely to challenge both these levels.
Celestia (TIA) Price Analysis
Since exceeding its Simple Moving Averages (SMAs) on August 13 and reaching $6.20, Celestia (TIA) has turned bearish. It subsequently fell below the moving averages, losing the $6 level to reach $5.15. By Sunday, TIA had dropped to a low of $4.99 due to growing bearish sentiment as it breached critical support levels. Despite some attempts by buyers to keep TIA above $5, weak demand has only allowed for a minimal increase on Monday. However, sellers have also lost momentum and may push TIA slightly down since it’s holding onto the $5 support level. Currently, buyers are trying to push TIA towards the 20-day SMA, but its gains so far have been modest.
For a strong bullish trend to develop, TIA needs to consistently surpass its 20-day Simple Moving Average (SMA). But, if it fails to maintain its $5 support, there’s potential for the price to slide downwards towards $4.
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2024-08-21 15:05