Bitcoin (BTC) fell below the $60,000 price level once again as bearish pressure pushed the price below $59,000. This indicates that bears are very active at higher levels, leading to buyers losing momentum.
BTC retreated after the Consumer Price Data was published. According to statistics from the US Bureau of Labor, the CPI Index rose by 0.2% in July, up from a decline of 0.1% in June.
Another factor contributing to BTC’s price drop was the withdrawal of $1 billion worth of USDT from crypto exchanges, suggesting investors may be taking a risk-off stance and moving their assets to safer environments.
Bitcoin (BTC) Loses $60,000
Bitcoin (BTC) has dropped over 4% in the past 24 hours after losing the $60,000 price level once again. However, some analysts are not too concerned, with one arguing that it may need a couple of months to stage a strong rebound and follow gold. According to the analyst, despite recent troubles, BTC’s price action still looks promising. The crypto markets had made a strong recovery following the August 5 crash. However, some analysts, such as those from IntoTheBlock, believe further upside may be elusive. These analysts noted that over $1 billion worth of USDT was withdrawn from crypto exchanges on Tuesday, the most in a single day since May.
“Over $1 billion in USDT was withdrawn from exchanges yesterday, marking the largest Tether outflow since May. While deposits are often viewed as bullish—indicating users are gearing up to buy assets—withdrawals can have a more nuanced interpretation. For instance, users might be moving funds to participate in DeFi and seeking yields outside of centralized exchanges. However, in recent cases where withdrawals exceeded $1 billion, Bitcoin began a downtrend soon after, suggesting investors may be adopting a risk-off stance, moving funds to safer environments like cold wallets in anticipation of market volatility.”
They further added,
“In recent cases where withdrawals exceeded $1 billion, bitcoin began a downtrend soon after, suggesting investors may be adopting a risk-off stance, moving funds to safer environments like cold wallets in anticipation of market volatility.”
BTC’s dip below $59,000 erased all its gains since Monday. The drop came despite CPI numbers hinting at an interest rate cut in September.
BTC’s Price Action Resembles Last Year
Looking at seasonal trends and the bigger picture regarding BTC, neither favors high prices at the moment. August and September have traditionally brought negative returns throughout BTC’s history, and this time could be no different, according to data from Coinglass. Miles Deutscher, a highly followed crypto analyst, stated that BTC’s current price action is similar to last year’s. Last year, BTC dropped to $24,000 from above $30,000 thanks to a large leverage flush in August. It traded sideways for the following two months before embarking on a rally in October.
“Retail interest is evaporating fast, apathy amongst existing market participants, lack of clear narratives. This feels eerily similar to August-October last year.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is struggling to stay above the $58,000 price level as its price encounters heightened volatility. In fact, BTC has seen a significant jump in volatility since the weekend, hovering between $58,000 and $62,000. However, sellers are looking to break this pattern and drive BTC even lower, with many pointing out that BTC has been disappointing at a macro level in recent months. However, analysts are still predicting a favorable forecast for the cryptocurrency, and that it could follow the gold price and produce favorable results for long-term holders.
“Gold had roughly 10-12 months of consolidation before marking up post-launch. If BTC follows, confluence with other factors pointing towards favorable performance into 2025.”
Looking at BTC’s current price chart, we can see the volatility prevailing in the market. BTC has been trading in a downward trend since hitting an intra-day high of $62,802 on Thursday. By Sunday, BTC had dropped below $60,000 to $58,775 after a drop of almost 4%. Buyers have repeatedly attempted a move above the moving averages but have been unsuccessful. The current week began with buyers and sellers tugging BTC both ways, resulting in an intra-day high of $60,749 and an intra-day low of $57,724 before settling at $59,410, an increase of 1.08 compared to Sunday.
Source: TradingView
Tuesday saw yet another attempt by buyers to push BTC above the moving averages, as buyers pushed the price to an intra-day high of $61,621. However, higher-level selling pressure led to bulls losing momentum, and BTC fell back to $60,658. Crucially, bulls could keep BTC above $60,000 despite sellers attempting to yank the price below $60,000. BTC made yet another attempt to push above the moving averages on Monday but was once again thwarted by sellers. This time, sellers could push the price below $60,000 to $58,752. The current session also sees sellers in control, with BTC down by just over 1% and trading at $58,146.
As we can see from the price chart, BTC is trading between $58,000 and $62,000, with neither buyers nor sellers able to go beyond the resistance and support levels. Sellers will look to drive BTC below $58,000 and drag the price to $55,000. However, buyers are expected to defend both levels vigorously. If bulls regain control, they will look to drive the price above the moving averages. A push above these levels could drive the price to $65,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has continued to struggle as recent bearish price action has led to the altcoin over half the gains made on Monday. ETH has been facing a stubborn level of resistance at $2,800, with bulls unable to surpass it. ETH lost the $3,000 level during the downturn in the first week of August and hit a low of $2,131 on August 5. While ETH has since recovered, it has struggled to regain pre-August 5 levels due to the resistance at $2,800. A rally on Thursday took ETH to $2,684, but the price dropped to $2,556 on Sunday.
Source: TradingView
ETH posted a strong recovery on Monday, starting the week positively and rising by 6.51% to $2,723. However, once again, demand dried up at higher levels, as ETH dropped by 0.71% on Tuesday. Sellers also attempted to drive the price lower, but demand at lower levels prevented further price drops. Buyers attempted to push ETH toward the moving averages on Tuesday, reaching an intra-day high of $2,782. However, the price fell back as sellers could retake control and push ETH down by 1.49% to $2,663. ETH has remained bearish during the current session and is down by almost 2%, trading at $2,612.
If ETH cannot push above $2,800, sellers could attempt to push the price below the $2,500 support level. A drop below this level could see ETH slide below $2,200. However, if buyers can push the price above the moving averages, we could see a push above $3,000, a level sellers are expected to defend vigorously.
Solana (SOL) Price Analysis
Solana (SOL) ’s recent price struggles have seen the altcoin shed almost 9% over the past week. Bears have repeatedly resisted efforts by SOL to push above the 200-day SMA and $150 and are instead looking to drive the price below $140. After reaching a low of $109.89 during the August 5 selloff, SOL was quick to recover, and by August 8, it had surged past the 50 and 200-day SMAs, reaching $163. However, with the 20-day SMA acting as a dynamic level of resistance, buyers lost steam, and SOL fell in the red, dropping over 4% to $156 on Friday. The price remained bearish over the weekend, and an 8.12% drop on Sunday took SOL below the 50 and 200-day SMAs and the $150 price level to $141.59.
Source: TradingView
However, SOL recovered on Monday thanks to strong support at the $140 price level. Buyers attempted a move above the 200-day SMA, and SOL reached a high of $150. However, buyers could not sustain momentum, and SOL dropped to settle at $146, an increase of 3.38%. Tuesday saw heightened volatility as neither buyers nor sellers could exert control. However, SOL fell into the red on Wednesday after a failed attempt to push above the 200-day SMA. Sellers could take control and drive SOL down by 2% to $143. The current session sees SOL down by 1.04% as sellers look to drive it below $140. If sellers can breach this level, SOL could drop to the $130 support level.
However, if buyers can regain control and push above $150 and the moving averages, it could open the door for a move above $160.
Ripple (XRP) Price Analysis
Ripple (XRP) has struggled to push above the 20-day SMA and reach $0.60, with the price down by almost 8% over the past week. XRP has faced considerable bearish sentiment since hitting a high of $0.643 on Thursday as it struggled to push to $0.65. As a result of growing selling pressure, XRP fell by almost 6% on Friday, slipping below the 20-day SMA and settling at $0.580. Sentiment remained bearish over the weekend, and XRP had dropped to $0.552 by Sunday.
Source: TradingView
XRP recovered on Monday, rising by almost 3% and moving to $0.568. Buyers also attempted to push above the 20-day SMA but could not do so after facing significant selling pressure at higher levels. A 1.55% increase on Tuesday pushed XRP to $0.577, but it could not move above the 20-day SMA. Sentiment turned bearish on Wednesday as sellers drove the price down by 1.51% to $0.569. XRP has also remained in the red during the current session, with the price marginally down.
The 200-day SMA is a strong support level, while the 20-day SMA is a strong level of resistance, preventing both buyers and sellers from gaining the upper hand and taking complete control. A drop below $0.55 could see XRP drop as low as $0.50. However, if buyers can reverse the current sentiment and push above the 20-day SMA, we could see the price move to $0.60 or $0.65. For now, XRP will trade between the two moving averages until a drastic price action occurs.
Render (RNDR) Price Analysis
Render (RNDR) has been relatively muted as it struggles to reclaim $5, trading sideways since its almost 16% rally on Thursday. RNDR lost momentum after this and, by Sunday, had dropped from $5.03 to $4.48. Despite the bearish weekend and the 20-day SMA acting as a dynamic level of resistance, RNDR started the week on a positive note, rising by 5.15% on Monday to $4.71. Buyers retained control on Tuesday as well after withstanding selling pressure and pushing RNDR up by 2.45% to $4.82.
Source: TradingView
However, sellers took control on Wednesday, as the price fell by almost 3% to $4.69. The current session also sees RNDR in the red, trading at $4.68. If buyers continue to exert control, RNDR could drop to $4. A break below this level could see the price slip to $3.50. However, should buyers retake control and push above the 20-day SMA, it could open the doors for a move to $5.50 and $6.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) has been trading below the moving averages since the beginning of August, indicating strong bearish sentiment in the market. DOGE lost the $0.100 price level on August 5 but reclaimed it after a 12.11% surge on August 8 as it rose to $0.107. Despite the bullishness, DOGE dropped to $0.101 on Sunday, unable to push above the resistance at $0.110. A strong start to the current week saw DOGE register a 6.44% increase and move to $0.107.
Source: TradingView
However, demand dried up at higher levels, and DOGE dropped by 1.30% on Tuesday to $0.106. On Wednesday, a further drop of 3.11% pushed the price down to $0.102. The price is marginally up during the current session, with buyers at the $0.100 support level entering the market. Bulls will look to strengthen their position if they can exert control and push the price above the 20-day SMA. Such a scenario could allow DOGE to rise to $0.115 and even $0.120. However, sellers will also look to exert control and drive the price below $0.100. Should this happen, DOGE will continue to trade in a falling wedge pattern for the near future.
Celestia (TIA) Price Analysis
Celestia (TIA) saw a dramatic collapse on Wednesday as its recent rally showed signs of stalling. TIA has attracted considerable attention but has consistently been trading in a downward trajectory, something that could hinder growth. TIA had made a strong recovery after the August 5 selloff when it dropped to an intra-day low of $3.95. However, by Saturday, TIA had climbed above $5 and settled at $5.88 after reaching an intra-day high of $6.25. Despite the strong momentum, buyers could not push above the 50-day SMA, and TIA registered a significant drop of almost 13% on Sunday, slipping below the 20-day SMA and settling at $5.13.
Source: TradingView
Thanks to strong lower-level demand, TIA could recover on Monday, rising over 14%, pushing back above the 20-day SMA and settling at $5.86. The price climbed above $6 on Tuesday after an increase of almost 6%. However, thanks to strong selling pressure, TIA fell back in the red on Wednesday, slipping below the 50-day SMA after an 8.13% drop and settling at $5.69. TIA also remains in the red during the ongoing session, down by 1.13%. If sellers retain control of the session, TIA could slip below $5.50 and drop as low as $5. Buyers are expected to defend the latter level and prevent a further drop. On the other hand, buyers will look to reclaim $6. A break and close above this level could see TIA test the $6.50 price level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
