As someone who has been closely following the crypto market for quite some time now, I must say that the recent price movements of Polkadot (DOT), SEI, and Bittensor (TAO) have certainly caught my attention.
The price of Bitcoin (BTC) slipped slightly and couldn’t stay above the significant threshold of $60,000. For several weeks, BTC has been battling unfavorable market conditions and a tough environment, without managing to recover its momentum. As a result, it has mainly been trading between $53,000 and $60,000. The inability of BTC to maintain the $60,000 level suggests that demand is waning at higher prices, with investors showing increased uncertainty.
Some experts predict it might be difficult to accurately forecast Bitcoin’s price trends after the Federal Reserve’s interest rate reduction. These analysts suggest that Bitcoin could potentially surge to $65,000 due to the rate cut, but they also warn of prolonged lower prices because of market uncertainties and the influence of the upcoming US elections. They even predict a possible drop in Bitcoin’s price to around $53,000.
Rate Cut Decision Leads To Uncertainty In Markets
The unease in Bitcoin (BTC) and broader cryptocurrency markets is largely due to the anticipated Federal Reserve interest rate decision on September 18 and the market’s likely response to it. Analysts predict that the rate cuts will have a positive impact on the crypto markets, suggesting investors should ready themselves for favorable situations in risk assets and digital currencies, as advised by QCP Capital.
As a researcher, I advocate for securing fixed yields over the anticipated interest rate reduction, while also readying our strategies to capitalize on optimistic market conditions. Even with some temporary uncertainties and potential losses, this approach seems favorable to me.
Yet, not everyone holds a favorable view, as some suspect that a significant reduction in interest rates might indicate more profound issues within the economy. In this regard, Jacob King, the head of the cryptocurrency newsletter WhaleWire, expressed his thoughts on the matter.
Historically, sudden, drastic reductions (sharp cuts) in economic activity have often led to recessions. This might indicate that the government is facing a situation where they’ve gone too far with their policies (overreach), causing them to react hastily and perhaps nervously.
Markets Closely Divided
According to Doctor Profit’s analysis, the cryptocurrency market appears evenly divided between a 0.25% or 0.50% reduction in interest rates by the Fed. The analyst believes that the Fed is more likely to choose the larger cut due to the urgent need for strong action given the current economic situation. If a bigger rate cut isn’t implemented, Bitcoin could drop below $50,000, potentially reaching as low as $48,900, according to Doctor Profit. The analyst also issued a caution about possible market manipulation and scams that may mislead investors. Additionally, geopolitical conflicts might add an extra layer of complexity, leading to increased market volatility and uncertainty.
Trump’s Impact On Crypto
The support for cryptocurrencies expressed by Donald Trump and his involvement in the crypto market is causing ripples within it. Trump has expressed approval for cryptocurrencies, attracted key members of the crypto community with promises related to blockchain technology and digital currencies in the GOP platform, and even accepted crypto donations for his campaign. He has also launched a new crypto-focused platform, Liberty World Capital, together with his sons, which has garnered over 150,000 members on its Telegram page. Some analysts believe that a Trump victory could drive the price of Bitcoin up to $80,000 or more, while a Biden win might cause it to drop down to $20,000.
Bitcoin (BTC) Price Analysis
Currently, Bitcoin (BTC) is hovering near $58,500 following its inability to maintain a position above the significant psychological barrier of $60,000. The bullish momentum has been hard to sustain for BTC as it attempts to break through the $60,000 level and the 200-day Simple Moving Average (SMA) to initiate a fresh surge. On September 6, BTC plunged to a daily low of $52,622 but rebounded significantly during the previous week, reaching above $55,000 by Monday (September 9). BTC managed to surpass $58,000 on Thursday after encountering substantial selling pressure on Wednesday, causing it to dip to a low of $55,599 before rebounding and closing at $57,356. The recent recovery saw BTC close at $58,176, just under the 20-day SMA.
On Friday, Bitcoin saw an uptick in purchasing activity, which led to a nearly 4% rise and moving above both the 20-day and 50-day Simple Moving Averages, reaching a value of $60,479. Yet, with sellers being active at higher prices, Bitcoin lost momentum over the weekend. Consequently, it dipped below $60,000 on Saturday, ending the day at $59,949 after a 0.88% drop. The price also fell beneath the 50-day SMA on Sunday, closing out the weekend with bearish sentiment following a 1.31% decline to $59,165. As the new week started, Bitcoin continued its downward trend, dropping to $58,164 after a 1.69% fall. However, attempts by sellers to push the price below $58,000 were unsuccessful as buying activity resurfaced at this support level.
The current session sees BTC up by 0.71% as buyers look to push the price back toward $60,000. The Federal Reserve’s decision on rate cuts could dictate BTC’s next price movement. Analysts believe it could be a positive catalyst for BTC and the crypto market. If the rate cut sparks a rally, BTC could climb back above $60,000 and go as high as $65,000. However, if sellers retake control and the rate cut does not substantially impact, BTC could slip below its $58,000 support level and slip as low as $55,000.
Ethereum (ETH) Price Analysis
As an analyst, I’m observing that Ethereum (ETH) is finding it challenging to maintain its position above $2,300, with a 4% drop on Sunday. The bears seem to be in control, putting selling pressure on ETH and keeping it in a descending trend. At this point, the price lacks the necessary momentum for an upward reversal. If ETH manages to hold its ground above $2,300, it may enter a consolidation phase, hovering between $2,300 and $2,400 in the short term.
ETH experienced a slight upward trend on Thursday, followed by a more substantial 3.34% rise on Friday that propelled it beyond $2,400 to reach $2,442. However, ETH encountered strong resistance at this level and started declining again over the weekend. The downtrend was further reinforced by the sloping 20-day Simple Moving Average acting as a dynamic obstacle. As a result, ETH dipped 0.91% on Saturday. Selling pressure intensified on Sunday with ETH dropping more than 4%, falling below $2,400 to reach $2,318. The downward trend continued on Monday, pushing ETH beneath $2,300 as the new week began amidst persistent bearish sentiment.
At present, Ethereum (ETH) has increased by 0.68%, moving it back above the $2,300 mark. Yet, efforts to gain momentum and reverse Ethereum’s ongoing downturn have been unsuccessful so far. For a reversal to happen, ETH needs to break through the $2,400 barrier. If it does and manages to hold this level, it could potentially push past $2,500. Nevertheless, sellers aim to undermine the support at $2,300. If this level is broken, Ethereum might fall towards $2,100 or even lower.
Solana (SOL) Price Analysis
Despite not managing to surpass the $140 mark, Solana (SOL) has maintained its position above $130 as investors work to regroup and continue the cryptocurrency’s upward trajectory. Last week, SOL displayed a bullish trend, reaching $136 by Thursday, and hovering close to its 20-day Simple Moving Average (SMA). On Friday, sellers attempted to pull SOL down to $130, causing it to dip to a daily low of $131. However, demand increased at lower price points, allowing for a swift recovery. As a result, buyers took control and propelled SOL above its 20-day SMA, reaching $139.
Over the past few days, the selling pressure has significantly increased while demand seemed to dwindle, giving sellers an upper hand over buyers. This unfortunate turn of events led Solana (SOL) to slide into the negative territory over the weekend, with a 1.41% drop on Saturday, closing at $137. The bears continued their reign on Sunday, pushing SOL below the 20-day Simple Moving Average (SMA) after a steep decline of 4.20%, leaving it at $131. Monday brought about considerable volatility as sellers aimed to drive the price under $130, while buyers tried to push it above the 20-day SMA. Unfortunately, neither party managed to achieve their goals, resulting in SOL holding steady at $131.
Dogecoin (DOGE) Price Analysis
Currently, Dogecoin (DOGE) is finding it challenging to maintain its position above $0.100 and the 20-day Simple Moving Average (SMA), as market sellers strive to pull the cost lower. Over the weekend, DOGE exhibited a bearish trend after it fell short of breaking through $0.110 on Friday. The buying momentum waned following a 3.59% increase on Friday that propelled DOGE above the 50-day SMA and settle at $0.106. Despite reaching a daily high of $0.108, DOGE failed to advance further as sellers pushed the price down again.
Due to increasing selling activity, DOGE experienced a downturn over the weekend, decreasing by 0.94% on Saturday and 2.55% on Sunday, causing it to fall below its 50-day moving average and settle at $0.103. The new week started with DOGE continuing its downward trend, dropping an additional 3.30%, falling beneath the 20-day moving average and reaching $0.099. However, in the current trading session, DOGE has risen by 1%, regaining its position above the 20-day moving average and reclaiming the $0.100 level. If DOGE fails to maintain this level and drops back below the 20-day moving average, it suggests that buyers are losing steam while sellers are gaining control. Conversely, if buyers can regain momentum, they will aim to surpass the 50-day moving average and move towards $0.110.
Polkadot (DOT) Price Analysis
On Monday (September 9), Polkadot (DOT) experienced a decline following its inability to surpass the 50-day Simple Moving Average (SMA) on Sunday, which caused it to dip into the red. However, DOT had previously shown a notable recovery from a low of $3.82, reaching $4.29 by Monday. Despite this slight drop on Tuesday and a 1.41% decrease on Wednesday, setting its price at $4.19, demand for DOT picked up on Thursday, causing it to rise nearly 3%, surpass the 20-day SMA, and settle at $4.30. The buyers continued to control the market on Friday, resulting in a further increase of 3.02% for DOT, moving its price to $4.43.
On Saturday, DOT saw a slight upward movement but struggled due to increased selling pressure caused by resistance at $4.50 and the influence of a downward-trending 50-day Simple Moving Average (SMA). By Sunday, DOT slipped into negative territory after an unsuccessful effort to surpass the 50-day SMA, decreasing by 0.90% to $4.40. The selling pressure escalated on Monday as DOT plummeted by 4.55%, reaching $4.20. In the current session, DOT has dipped nearly 1% and is trading under the 20-day SMA at $4.17. If sellers maintain control, DOT could slide down to its significant support level of $4. However, if buyers regain dominance, they will aim to push DOT back above the 20-day SMA and continue their journey towards $4.50.
SEI Price Analysis
On Monday, SEI experienced a steep decline as it failed to maintain its position above $0.30, leading to a significant drop at the start of the week. However, on Thursday, SEI managed to surpass both its 20 and 50-day moving averages following a strong rally that boosted its price by nearly 7%, reaching $0.30. The days following this move were marked by intense volatility as sellers tried to drive the price lower and buyers aimed to push it higher. This resulted in only a minor increase for SEI on Friday after a tumultuous trading session. On Saturday, sellers took control, causing SEI to drop by over 2% to $0.29. Sunday saw another volatile day as SEI made an effort to regain $0.30, peaking at $0.31 during the session. However, sellers managed to push the price back down, and SEI ended the day with a marginal increase, settling at $0.30.
This week started off negatively for SEI, dropping nearly 10% to reach $0.27, with sellers dominating the initial trading. Yet, in the present trading session, SEI has increased by close to 1%, now valued at $0.27.
Bittensor (TAO) Price Analysis
Last week saw a significant rise in Bittensor (TAO). On Monday alone, it soared nearly 13%, breaking through its 20 and 50-day moving averages as well as key resistance levels. By Friday, TAO had moved past $300, peaking at $320 before settling at this level, marking a 9.23% increase. Despite encountering significant selling pressure throughout the week, TAO managed to gain over 2% by the weekend’s start. However, the tide turned on Sunday as sellers gained momentum, causing TAO to plummet almost 8%, ending the weekend at $302 and painting a bearish picture.
On Monday, the downward trend for TAO persisted as selling pressure outweighed any attempts by buyers to recover. Consequently, TAO fell by approximately 4.62%, dipping below $300 and ending at $288. However, in the current trading session, TAO has climbed more than 4% and is now above $300, as investors aim to drive prices back toward $350.
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2024-09-17 13:23