As a seasoned crypto analyst with years of experience under my belt, I must say that the current market trends are quite intriguing. Polkadot (DOT) finally breaking above the $4.50 level is a significant milestone, and if it manages to hold this position, we could potentially see it aiming for the $5 mark. However, as always in the world of cryptocurrencies, it’s crucial to remember that even the mightiest of coins can tumble like a drunken sailor on a stormy night.
On Monday, Bitcoin (BTC) soared beyond $64,000, reaching a peak of $64,400 before pulling back. Over the past week, it has climbed more than 8%, extending its upward trend after the Federal Reserve announced a 50 bps rate cut. Meanwhile, gold prices reached a new record high, and the Japanese yen continued to depreciate on a relatively tranquil day for Japan’s financial markets.
Ethereum (ETH) currently holds its ground above the $2,600 mark, though there’s a possibility that sellers might try to drive it under this threshold. Over the last day, ETH has seen a nearly 2% decrease in value. In contrast, Solana (SOL) shows only minor losses and is trading near $146. Although SOL has been slow over the past 24 hours, it has experienced a significant surge of almost 11% over the last week.
Crypto Investment Products Extend Positive Streak
Crypto investment products have continued to draw heightened investor interest, with funds registering their second week of inflows. According to a report by CoinShares, global digital assets posted a total of $321 million worth of inflows over the past week. However, this figure was slightly lower than the $436 million recorded last week. CoinShares stated that inflows into US-based funds made up a significant chunk of the total inflows recorded, with Switzerland following closely with $63 million, its second-largest inflows this year. However, Germany, Sweden, and Canada did not register inflows; instead, they registered outflows worth $9.5 million, $7.8 million, and $2.3 million.
Based on CoinShares’ report, an uptick in investments and interest in cryptocurrencies was spurred by the Federal Reserve adopting a more accommodating stance and reducing interest rates by 50 basis points. This move encouraged investments in riskier assets like cryptocurrencies, leading to crypto funds experiencing a 9% surge in managed assets, totaling approximately $9.5 billion. Bitcoin-focused funds saw the most significant gains, attracting nearly $300 million. Additionally, there was an influx of $5.1 million into short-Bitcoin investment products as investors aimed to capitalize on recent price fluctuations.
Despite ongoing underperformance, Ethereum-based funds have experienced five straight weeks of withdrawals, totaling $29 million in outflows last week. As reported by CoinShares, Grayscale’s Ethereum Trust (ETHE) and other newly issued ETFs have seen continuous outflows. Conversely, Solana investment products have consistently attracted investments, with a weekly inflow of $3.2 million during the last week.
AI Tokens Lead Altcoin Surge
On Monday, cryptocurrencies related to artificial intelligence saw a surge, with TAO, LPT, NEAR, and RNDR standing out as top performers. Notably, NEAR and Render (RNDR) experienced growth of around 18% to 20%, while Decentralized machine learning protocol Bittensor (TAO) skyrocketed by an astounding 87% over the last week. LPT gained significant ground after Barry Silbert, CEO of Digital Currency Group, highlighted it as a “hidden gem” in AI-focused cryptocurrencies.
On Monday, Celestia (TIA) experienced a 12% increase in value due to the announcement that its associated organization, Celestia Foundation, was planning to raise $100 million through an investment round headed by Bain Capital Crypto. Additionally, the surge in AI token prices was reinforced when Kamala Harris, the Democratic presidential candidate, expressed her support for technology-friendly policies at a fundraiser, promising to foster advancements in technologies such as AI and digital assets.
Could BTC Hit Record High In Q4?
2019 witnessed Bitcoin (BTC) experiencing a price decline due to interest rate reductions. But for this year, things might take a different turn given the decrease in inflation. Markus Thielen, founder of 10x Research, anticipates BTC reaching unprecedented peaks by the end of the year, based on various factors that could trigger a surge. He mentioned the FTX estate distributing billions of dollars in assets to creditors over the coming months, with some of these funds possibly reinvested in crypto assets as potential reasons for this bullish outlook.
The Securities and Exchange Commission (SEC) has given the green light for BlackRock to list options for their Bitcoin ETF, paving the way for additional financial products related to this ETF and potentially increasing liquidity in Bitcoin. As per K33 Research, Bitcoin is at a critical juncture. Historically, previous bull markets have lasted more than 1050 days, with the majority of significant gains occurring during the final 365 days. So far, the current peak-to-trough has lasted 672 days, placing us in an area where prices might start to escalate.
Bitcoin (BTC) Price Analysis
Currently, Bitcoin (BTC) is hovering slightly below the $63,500 threshold, as market sentiment remains bullish post the Federal Reserve’s announcement of a 50 basis point rate reduction. On Monday, BTC peaked at $64,712, with investors trying to surpass the 200-day Simple Moving Average (SMA) and $65,000. At present, buyers are struggling to exceed the 200-day SMA, as sellers seem to hold the advantage in this price range.
As a crypto investor, I find myself standing at a pivotal moment with Bitcoin. If it manages to break through the resistance level of $70,000 and closes above it, I’m optimistic that a significant upward trend could start unfolding. However, if Bitcoin fails to surpass this critical threshold, there’s a possibility it might dip down towards $60,000 instead.
It’s not just the Federal Reserve’s interest rate reduction causing Bitcoin’s surge in value lately. Last week, the Bank of Japan opted to maintain its rates unchanged, indicating no imminent intention or plan to increase them. This decision from the Bank of Japan followed closely on the heels of the Fed’s rate cut, preventing the yen from strengthening any further. As per Goldman Sachs, the Federal Reserve’s rate reduction has helped alleviate fears about an upcoming economic recession.
Over the next three months, our FX team predicts a minor increase in the value of the U.S. dollar, but they anticipate it to weaken again when looking at the six-month and one-year outlook.
Last week’s price trend for Bitcoin (BTC) indicated a highly optimistic outlook, surpassing multiple significant resistance points and moving averages. On Tuesday, it surged past the 50-day Simple Moving Average (SMA) and hit the $60,000 mark before closing at $60,318. The upward momentum continued on Wednesday, even when faced with strong selling pressure, pushing the price to reach $61,772. By Friday, it peaked at a daily high of $64,000, as investors aimed to surpass the 200-day SMA. However, they were unable to do so, and BTC ended the day at $63,229.
Over the weekend, there was a power struggle between buyers and sellers, with Bitcoin (BTC) experiencing considerable selling force but still managing a small rise on Saturday and Sunday. Despite plunging to a low of $62,427 on Sunday, it remained stable. As we entered this week, buyers attempted to drive BTC above the 200-day Simple Moving Average (SMA) and the $65,000 mark. On Monday, BTC reached a high of $64,712, but as selling pressure increased, buying momentum waned, causing BTC to drop back below $64,000 and eventually close at $63,348 after a decline of 0.37%. Currently, the day is seeing Bitcoin fluctuating slightly, with neither buyers nor sellers gaining control.
Looking at the Bitcoin price graph, there is resistance being encountered around $64,000 and $65,000. Buyers aim to push Bitcoin beyond these levels, but for now, sellers are maintaining their position. If buyers manage to keep Bitcoin above $60,000, the chances of it breaking through $65,000 become stronger. In this case, Bitcoin might climb as high as $70,000.
Ethereum (ETH) Price Analysis
After experiencing a recovery, Ethereum (ETH) has managed to surpass the $2,400, $2,500, and $2,600 thresholds. Prior to last week, ETH had been finding it challenging to break above the 20-day Simple Moving Average (SMA) and $2,400, but on Thursday, it spiked nearly 4%, surpassing both the 20-day SMA and $2,400 to close at $2,465. The upward trend continued on Friday as ETH rose by 3.90%, pushing beyond $2,500, with the 50-day SMA settling at $2,561. However, selling pressure mounted over the weekend, causing ETH to dip to a low of $2,530 on Saturday. It swiftly bounced back and recorded an increase of 2.04%, reclaiming the $2,600 mark and settling at $2,614.
On Sunday, ETH dipped back into the negative territory, touching a daily low of $2,525 due to selling pressure. Yet, it managed to hold above the $2,500 mark, with buyers stepping in to purchase at lower prices. However, they were unable to counteract the selling momentum completely, causing ETH to decline by 1.19% and close at $2,583. The new week started with buyers attempting to push ETH towards $2,700. It reached a high of $2,704 before being pushed back below $2,700 by sellers. Despite the heavy selling pressure, ETH still experienced a growth of 2.48%, ending the day at $2,647. Currently, in this session, ETH is slightly up, with both buyers and sellers vying for control without either gaining a decisive advantage.
Ethereum (ETH) encounters two significant thresholds that might influence its price movement. If purchasers manage to elevate it beyond $2,700, the subsequent key hurdle is at $2,850. Overcoming both these levels suggests a change in sentiment and opens up the possibility of it surpassing $3,000. Conversely, if sellers dominate and drive ETH below $2,500, the bears remain in control. A decline below $2,500 might cause ETH to slide to $2,400 before finding equilibrium again.
Solana (SOL) Price Analysis
Currently, Solana (SOL) is finding it tough to surpass the $150 mark, as buyers have been unsuccessful in overcoming the resistance at this point. Last week, SOL experienced a boost, rising by 6.36% on Thursday, which enabled it to exceed its 50-day Simple Moving Average and close at $142. On Friday, buyers made an effort to push SOL above $150, with the price peaking at $152 during the day. However, as demand decreased at higher levels, sellers might drive SOL back below $150, ending the day at $146 after a gain of 2.67%.
Over the weekend, SOL saw a mixed performance. It rose by 1.90% on Saturday to reach $149.50, but failed to surpass $150. On Sunday, however, sellers took over, causing SOL to decline by 3.20%, ending the weekend bearishly at $144. Despite a low of $141 due to selling pressure, investors stepped in to buy the dip, allowing SOL to recover slightly. The beginning of this week has been marked by high volatility as both buyers and sellers vie for control over SOL. As a result, SOL has experienced significant fluctuations. At present, SOL is up by almost 1.90%, with buyers aiming to push it above $150 again.
Should the price surpass $150, key resistance points lie at $155 and $160. If SOL manages to break through these barriers, we might witness an uptrend towards $180. Yet, it’s important to note that sellers are likely to try and hold these levels. In the event sellers regain control, it would signal selling on any short-term price increases. Under such conditions, SOL could potentially slide down to $140.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) is looking to push above $2 after starting the current week strongly. As we can see in the price chart, WIF registered a jump of almost 10% on Thursday to surge past the 50-day SMA and settle at $1.77. Buyers attempted a move past $2 on Friday as WIF rose to a day high of $1.90. However, with demand drying up, sellers could push WIF back below $180. WIF eventually settled at $1.78, registering only a marginal increase. The weekend saw bearish sentiment return as WIF dropped to a day low of $1.66. However, investors bought the dip and pushed the price back above $1.70. WIF eventually settled at $1.77 after a marginal increase.
On Sunday, the demand to sell WIF rose significantly, pushing its price down nearly 5% to $1.69. Sellers managed to pull WIF down to a low of $1.62 during the day, but strong resistance at $1.60 helped it recover and close at $1.69. As we enter this week, buyers have returned, causing WIF to rise by 2.95% to $1.74 on Monday. Currently, in today’s trading session, WIF is up almost 8% as the markets rebound. Investors are now looking to push WIF above the $2 mark. However, sellers may try to hold this level and potentially drive WIF back towards its support of $1.60.
Polkadot (DOT) Price Analysis
During the current trading session, Polkadot (DOT) surpassed the $4.50 mark for the first time, as enthusiasm grows following several weeks of setbacks. On multiple occasions, DOT nearly broke through the $4.50 barrier but was unable to do so. This altcoin has been persistently trying to breach the $4.50 threshold since the end of last week, reaching a peak of $4.49 on Friday. However, the buying momentum weakened in the face of robust opposition, causing DOT to drop below its 50-day Simple Moving Average (SMA) and settle at $4.34.
On Saturday, DOT experienced a 2.76% rise, surpassing its 50-day Simple Moving Average and closing at $4.46. Yet, it failed to climb further and dipped again on Sunday, decreasing by 3.36%, concluding the weekend in a downtrend at $4.31.
This week started with DOT reaching a low of $4.24, but it soon bounced back due to increased buying activity. This led to an increase of 3.48%, pushing DOT above the 50-day Simple Moving Average and settling at $4.46. In the current trading session, DOT surpassed $4.50. At present, DOT is up by 2.24% and is being traded at $4.57. The MACD shows a bullish trend, suggesting that buyers are dominating the market. If DOT manages to close above $4.50, traders may try to push the price towards $5. However, for this to happen, DOT needs to stay above $4.50.
Toncoin (TON) Price Analysis
As I, the researcher, observe the current market dynamics, Toncoin (TON) remains confined within a relatively tight trading band, oscillating between roughly $5.40 and $5.80. Despite attempting to break through this barrier on Thursday when it peaked at $5.82, TON has thus far been unable to surpass the 50-day Simple Moving Average (SMA) and the resistance at $5.80. A renewed effort was made on Friday, reaching a daily high of $5.79, but sellers regained control, leading TON to experience a 2.27% decline, settling at $5.55 by day’s end. The weekend saw a fluctuation in TON’s price, with a 2.02% rise on Saturday followed by a 0.90% decrease, leaving it at $5.61 to close out Sunday.
The current week began with TON facing volatility as buyers and sellers struggled to establish control. TON eventually registered an increase of 0.56% and settled at $5.64. The current session sees TON marginally up and trading at $5.62.
Injective (INJ) Price Analysis
Last week, INJ experienced a surge and broke past the $20 mark, thanks to a 3.34% rise on Thursday that took its price up to $20.45. The bullish sentiment persisted into Friday, pushing INJ further up to $20.99. However, the weekend started with some volatility as buyers and sellers battled for control, eventually causing INJ to register a small increase, reaching $21.16 and surpassing a key resistance level. On Sunday, buyers managed to maintain their position and fended off attempts by sellers to push the price back below $20. By the end of the weekend, INJ had seen an additional 2.66% growth, closing at $21.73.
This week’s trading for INJ started with a renewed selling trend that aimed to push the price under $20. But after touching a low of $21.11, the price rebounded by approximately 3.34%, ending the day at $22.45. However, in the ongoing session, INJ is experiencing a decline, dropping by over 1.09% and currently trading at $22.21.
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2024-09-24 13:05