As a seasoned trader with over two decades of experience under my belt, I’ve seen markets rise and fall like a rollercoaster, but the recent performance of TAO has been nothing short of extraordinary. Last week, it was a spectacle to behold as this cryptocurrency surged nearly 100% in just five days, reaching an astounding $600 before cooling off slightly.
On Tuesday, Bitcoin (BTC) and Ethereum (ETH) saw a minor dip but quickly recovered, fueling the ongoing crypto market surge. At present, Bitcoin is nearly at $65,000, while Ethereum is close to $2,700. The total value of the cryptocurrency market has grown by 2.01%, reaching approximately $2.26 trillion. Over the past 24 hours, Bitcoin has risen by more than 2%, and Ethereum has increased by 0.80% in the same timeframe.
The rise in both traditional markets and cryptocurrencies can be traced back to the Federal Open Market Committee’s decision to lower interest rates by 0.5%, adjusting the federal funds rate range to 4.75% – 5%. This move has led to an increase in various global assets, including the US dollar, digital currencies like Bitcoin, and even meme coins.
Crypto Market Continues Rally
The reduction in interest rates has sparked debates, as some contend the Federal Reserve made its move too late, suggesting a possible economic downturn might follow. Notably, past times when the Fed reduced rates by half a percentage point occurred during the recessions of 2001 and 2008, causing market observers to worry that this latest cut could present similar difficulties. Nevertheless, some financial experts posit that the Federal Reserve may be managing an ideal economic phase, often referred to as the “Goldilocks” economy, in which growth remains steady yet controlled.
Due to recent developments, the crypto sector has experienced a significant recovery, primarily driven by Bitcoin (BTC) and Ethereum (ETH). Interestingly, ETH has spiked nearly 14% over the last week, suggesting that investor risk tolerance is on the rise. Moreover, meme coins have reemerged, with many popular meme tokens experiencing double-digit growth. In addition, Bitcoin has climbed approximately 7% in the past week; however, its control over the crypto market has slightly diminished, implying a widespread surge across various crypto markets.
Additionally, other significant economic indicators have shown improvement, with the U.S. Dollar Index increasing by 0.36%. Following the Federal Reserve’s announcement, the USD/JPY exchange rate, previously at 141, has climbed to 143.5. The depreciation of the yen has contributed to a rise in risky assets like cryptocurrencies. Gold, often viewed as a secure investment, has also experienced an increase.
Over the past few days, there has been an increase in investments in Bitcoin and Ethereum exchange-traded funds (ETFs), contributing to the positive momentum in the cryptocurrency market. Specifically, Ethereum ETFs saw inflows of $8.1 million between September 19th and 20th, while Bitcoin ETFs experienced much larger inflows totaling $250 million over the same period.
SEC Grilled On Crypto Oversight
All five Securities and Exchange Commission commissioners, including SEC Chair Gary Gensler, testified at a full congressional hearing, coming under criticism for its “scorched earth” regulatory approach towards the crypto industry. Gensler and commissioners Hester Peirce, Mark Uyeda, Caroline Crenshaw, and Jamie Lizárraga were appearing before the US House Financial Services Committee for the first time since 2019. The SEC came under intense criticism from lawmakers for its aggressive stance towards crypto, with lawmakers stating that the SEC under Gensler had stifled the industry with regulatory policy uncertainty. The committee questioned Gensler and fellow commissioner Peirce, both of whom have been highly critical of crypto, questioning them about the SEC’s unclear terminology regarding assets such as Ethereum.
Lawmakers contended that the Securities and Exchange Commission (SEC) hadn’t provided clear regulations regarding cryptocurrency, and that their vague language hindered their ability to effectively manage and control markets. Representative French Hill asserted that the SEC had been taking the lead on crypto regulation before Congress, and was trying to take control of crypto supervision through extensive enforcement measures.
Bitcoin (BTC) Price Analysis
On Tuesday, the primary cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) dipped slightly as markets underwent a minor correction. Bitcoin (BTC) dipped below $63,000, reaching $62,855 before rebounding above its original level. It spiked to $64,700 but then dropped back down to its current price of $63,950. Analysts suggest that BTC was unable to break through the $64,000 barrier and has returned to its usual range. If BTC can maintain itself around the $64,000 level, it could potentially surge past $65,000. However, if it fails to stay above this mark, the market might see a dip down to $62,000 or even lower.
Bitcoin has fallen back from reaching over $64,000 and is now hovering around $63,000 again, where it had previously been consolidating. Despite some outflows in spot ETFs yesterday, the asset continues to move within this range. If Bitcoin manages a strong weekly close above $64,000, we might see another push towards $65,000. Conversely, if $64,000 doesn’t hold during a test, there could be a slide down to $62,000.
1) The surge past $64,000 was fueled by increasing anticipation for monetary easing, as China joined a worldwide monetary easing initiative led by major economies in an effort to counteract a slowdown. However, the temporary drop below $63,000 occurred following the Conference Board’s report of decreasing consumer confidence in September, with the main index dipping from 105.6 to 98.7 – marking the most significant monthly decrease since August 2021.
As a researcher, I’ve observed a shift in consumer perspectives. Their evaluations of the present business climate have turned unfavorable, while their outlook on the current labor market situation has grown more cautious. Furthermore, consumers appear to be increasingly pessimistic about the future labor market conditions and less optimistic about both future business conditions and future income.
Observing the price graph, it’s evident that buyers and sellers are engaged in a struggle over the $64,000 mark. Despite a surge in bullish sentiment in recent days, buyers have struggled to surpass $64,000 and the 200-day Simple Moving Average (SMA). Bitcoin showed strong bullish trends last week but has since faltered, with buyers unable to generate substantial gains as selling pressure intensifies near resistance levels. On Thursday, we saw Bitcoin try to break above the 200-day SMA and $64,000, but it pulled back after reaching a peak of $63,886, eventually ending the day at $61,556. Volatility spiked on Friday as buyers once more attempted to breach $64,000, only to be turned away again. With selling pressure mounting, Bitcoin could only manage a minor increase, moving up to $63,229.
On Saturday, Bitcoin saw a minor rise, followed by significant fluctuations on Sunday due to selling efforts aiming to dip the price below $60,000. The selling pressure caused Bitcoin to plummet to a low of $62,427 before rebounding and ending at $63,586, showing an increment of 0.32%. The ongoing volatility marked the start of the week, with sellers gaining control after another failed attempt to surpass $64,000. This resulted in a decrease of 0.37% for Bitcoin, despite reaching a peak of $64,712 and settling at $63,348. However, on Tuesday, buyers regained control as demand rose, resulting in an increase of 1.46% that took the price to $64,275.
In the present market scenario, Bitcoin (BTC) is experiencing a decline of nearly 1% and is trading at approximately $63,719. The question remains: What direction will BTC take next? Although BTC has been facing resistance between $64,000 and $65,000, it has managed to stay above the $63,000 mark, suggesting that potential support could be forming at this level as BTC consistently records higher lows. If BTC can maintain its position above $63,000, the probability of a breakthrough above $65,000 increases substantially. A successful breakout could propel BTC towards $70,000. However, if sellers continue to dominate, Bitcoin might dip below $63,000 and fall back to the support level of $60,000.
Ethereum (ETH) Price Analysis
During the current trading period, Ethereum (ETH) has experienced a minor dip and is currently nearly 1% lower compared to the previous 24 hours. However, over the last week, ETH has shown a robust performance with almost a 14% increase, suggesting that investors have renewed interest in ETH. Nevertheless, ETH encounters considerable resistance at approximately $2,700, a hurdle it must surmount if a move towards $3,000 is to materialize. In the past week, ETH has shown strong momentum, breaching levels of $2,400 and $2,500, as well as the 20- and 50-day Simple Moving Averages (SMAs). By Friday, it reached $2,561 after a climb of 3.90%. Despite the overall optimistic trend, ETH experienced mixed results over the weekend due to selling pressure.
On Saturday, ETH dipped down to approximately $2,530, but soon bounced back and surpassed $2,600, reaching $2,614 with a rise of more than 2%. However, it slid back into negative territory on Sunday as traders aimed to push the price below $2,500. As a result, ETH touched its lowest point for the day at $2,525, but recovered when investors took advantage of the dip. By the end of Sunday, ETH had slipped below $2,600 and closed at $2,583. The new week started with ETH trying to breach the $2,700 mark. It managed to reach a high of $2,704 initially, but was unable to sustain this level and fell back to $2,647 after an increase of $2,674.
On Tuesday, volatility spiked as both buyers and sellers vied for dominance. Despite intense selling activity, Ether (ETH) experienced a modest uptick. Currently, ETH is experiencing a 1.10% drop and hovering near the $2,625 price point. Sellers aim to drive ETH under $2,600 to halt any advance above $2,700. If buyers regain traction, ETH might challenge the $2,700 threshold again. Overcoming this level could pave the way for a surge toward $3,000.
Even though Ether (ETH) hasn’t been able to break through the $2,700 resistance so far, an uptick in open interest signals potential price growth within the upcoming weeks and months, possibly pushing the value near $3,000.
Solana (SOL) Price Analysis
On Tuesday, Solana (SOL) surpassed $150, reaching $152 following a nearly 6% rise. However, during the current session, the price has dipped again, with sellers aiming to drive it back under $150. Towards the end of last week, SOL showed a bullish trend, attempting to break above $150 since Friday when it peaked at $152 for the day. Regrettably, the buying momentum waned at this level, potentially allowing sellers to push SOL below $150. It closed at $146 after a 2.67% increase on Saturday, making another attempt to break above $150 with a 1.90% rise. Yet again, it failed to surpass $150 and fell into the red on Sunday, dropping to $144 after a decline of 3.20%. On Sunday, SOL also reached a day low of $141, but swiftly rebounded due to the 50-day Simple Moving Average acting as a supportive barrier.
This week’s exploration began with Solana (SOL) experiencing considerable fluctuations as I observed buyers striving to propel its value above $150, while sellers aimed to dip it beneath $140. Despite these efforts, SOL registered a minimal increase, closing at $144 after touching a low of $142 and a high of $149. The sentiment shifted on Tuesday when SOL soared by 5.50%, breaking the $150 mark and settling at $152. However, with the 200-day Simple Moving Average (SMA) coming into play, buying momentum waned and it could not rise further. As I write this, SOL is witnessing a nearly 2% decline as buyers attempt to drive its value below $150 once more.
Should SOL surpass $150, noteworthy resistance points become $155 and $160. Overcoming these barriers might lead to a potential target of $170 followed by $190. Yet, it’s crucial to note that sellers are actively guarding the $150 mark, making it challenging for buyers to maintain SOL above this price. If sellers manage to drive SOL below $150, a possible fall could occur to $140, where a stabilization might be anticipated.
Dogecoin (DOGE) Price Analysis
In my analysis as a market observer, Dogecoin (DOGE) is finding resistance around the $0.110 mark, with sellers managing to maintain control over buyers at this level. Over the course of the current session, DOGE has slipped back into the red, following a modest surge on Saturday that saw it climb nearly 4% to reach $0.109. Despite the upward momentum, selling pressure at $0.110 prevented further gains, leading to a 3.19% drop to $0.106 on Sunday. Attempts by sellers to push DOGE below the $0.105 support level were unsuccessful.
On Monday, DOGE experienced a gain of 1.41% and closed at $0.107, despite ongoing volatility. The meme coin continued its upward trajectory on Tuesday, increasing by 2.23% to reach $0.110. However, sellers stepped in and caused DOGE to slide back into a loss, dropping by 0.73% during the session. Currently, DOGE is trading between $0.105 and $0.110, as neither buyers nor sellers are able to significantly impact the price. If buyers manage to gather momentum, they will aim to push and stabilize above $0.110. Conversely, sellers will try to drive DOGE below $0.105, potentially causing it to drop to $0.100 if this level is breached.
Bittensor (TAO) Price Analysis
Despite facing difficulties in breaking past the $560 mark, Bittensor (TAO) has maintained its positive momentum. The token’s market capitalization has swelled by nearly 2%, and its daily trading volume has surged by approximately 28%. A community poll indicates that a vast majority of 86% of participants are optimistic about TAO. Over the past week, TAO has experienced a significant rise of almost 70%. However, this week’s bullish surge has slowed around the $560 and $600 levels as bears have tried to hold these positions. The impressive rally for TAO began last Monday following its rebound from a low of $288. By the weekend, it had climbed nearly 100% after reaching $469 on Saturday.
On Sunday, buyers paused their activities while sellers tried to manipulate TAO‘s trend. However, the seller efforts were unsuccessful, and TAO recorded a slight rise, concluding the weekend on an optimistic note. On Monday, TAA soared past $500, continuing its upward climb and rising by nearly 15% to reach $540. The positive outlook for TAO was overwhelming, causing it to touch a high of $582 before selling at higher levels brought it down to $540 again. On Tuesday, buyers managed to push TAO up to an intraday high of $600, but as the selling pressure escalated at higher levels, the price dropped below $560. Eventually, TAO experienced a 1.71% increase and settled at $550. As of now, TAO is rising by 2.39%, trading at $569.
It appears that while TAA continues to show positive signs, there’s been a decrease in optimistic feelings among investors. This might lead to a dip from the current prices as the Relative Strength Index (RSI) is deeply within the overbought territory. Consequently, it’s possible that TAO could fall to around $500 due to increased selling pressure.
Ripple (XRP) Price Analysis
Ripple (XRP) is currently trading within a narrow range, fluctuating between approximately $0.55 and $0.60. On Saturday, XRP managed to surpass $0.60, reaching a peak of $0.61, but sellers immediately took control, pushing the price back down below $0.60, ending at $0.59. Unfortunately, Sunday saw a 1.61% decline in XRP’s value, leaving it at $0.58. The start of this week has seen increased volatility as both buyers and sellers vie for control, resulting in a minimal drop of 0.58%.
On Tuesday, there was a resurgence of buying activity, causing XRP to gain 0.96%, reaching a closing price of $0.59. Yet, efforts to push it beyond $0.60 proved unsuccessful, resulting in XRP trading in the negative during the current trading period.
Celestia (TIA) Price Analysis
Since bouncing back from a low of $3.91 on September 6, Celestia (TIA) has shown a positive trend. It surpassed significant resistance points and peaked at $6.50 by Thursday, but then retreated to close at $5.94. Sellers aggressively guarded the $6 mark, causing TIA to gain just 1.26% on Friday and a slight increase on Saturday, ending the day at $0.01. The selling pressure escalated on Sunday, pushing TIA down almost 11% to $5.36. However, on Monday, TIA experienced a strong surge, skyrocketing by 23.94% to break through the $6 barrier and settle at $6.46.
On Tuesday, buyers tried to push TIA up to $7 but faced increasing resistance from sellers at higher price points. This reversal caused TIA to slide, ending the day 3.47% lower at $6.41. Currently, sellers are in command as they prevented a rally towards $7. Despite reaching a high of $6.83 earlier today, TIA has failed to maintain its upward momentum, giving control back to the sellers. As of now, TIA is down 1.42%, trading near $6.32. If sellers manage to push TIA below $6, it could potentially fall to $5. However, if the bulls can keep TIA above this level, they may attempt to retest resistance at $6.50 and $7.
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2024-09-25 14:13