Bitcoin (BTC) is struggling to reclaim the $60,000 price level after attempting a recovery but losing steam. BTC climbed to $61,120 late on Thursday, but sellers were able to drag the price back down to the $59,000 level. BTC is currently trading just above $59,000 as sellers look to push the price lower.
Major cryptocurrencies have receded marginally over the past 24 hours, with BTC down by 0.60%, Ethereum (ETH) down by 0.62%, Solana (SOL) by almost 4%, XRP down nearly 2%, Toncoin (TON) down by 2.14%, and even Dogecoin (DOGE) registering a marginal drop. On the other hand, AI-focused tokens, including FET, RNDR, and TAO, registered drops between 7% and 10% following Nvidia’s post-earnings slump.
A Crucial Week For Crypto Coming Up
The upcoming week is crucial for crypto, especially with the upcoming interest rate cut, which could provide a shot in the arm for crypto markets hungry for capital. A boost in capital could result in significant price jumps across the board for major cryptocurrencies. This is why investors are hoping for a bull run in September despite it being a historically muted month for major cryptocurrencies such as BTC.
Crypto Market Has Evolved: Canaccord Report
A research report by Canaccord has stated the crypto market has evolved significantly over the past year after bouncing back from the collapse of the crypto exchange FTX and returning to growth. Currently, the crypto market cap stands at over $2 trillion. FTX collapsed after filing for Chapter 11 bankruptcy, leading to a prolonged crypto winter and bear market for the crypto ecosystem. It also sparked a domino effect, leading to the collapse of multiple crypto companies. Canaccord stated in its report,
“In the last year, we believe the broader digital assets industry has transitioned back from a post-FTX consolidation/recovery phase to one focused on growth and business model/total addressable market (TAM) expansion.”
The report also stated that the launch of spot Bitcoin and Ethereum ETFs has facilitated broader institutional adoption of digital assets and that portfolio allocations will continue to increase.
“With the approval of both bitcoin (BTC) and ether (ETH) spot ETFs, we have also seen broader institutional adoption of digital assets and expect portfolio allocations here to continue to increase.”
Over-Optimistic BTC Traders In The Red
Bitcoin (BTC) has plummeted since briefly hitting $65,000, with the downturn linked to a possible US recession and excessive optimism in the market. While recession fears have since receded, BTC has struggled, having been unable to establish itself above $60,000, with sellers consistently pushing the price back down. Christian Mueller-Glissmann from Goldman Sachs stated that investors must treat the August 5 market crash as a warning shot, adding that markets were back to a familiar problem faced a month ago, that of too much optimism despite mixed macroeconomic data.
According to TradingView data, BTC’s annualized volatility surged over 65% in early August, significantly higher than the 24% to 52% range already seen in the two months prior. For context, the S&P 500 index volatility peaked at 27% in mid-August, the highest level since December 2022. However, crypto traders remained overly optimistic and relied too much on their leveraged positions.
The Bitcoin futures premium also briefly slipped below the 5% neutral threshold, reaching its lowest level since October 2023. After the price found support, the demand for bullish bets recovered, with the indicator pushing back above 6%. The indicator’s impact was reflected in the reduction of aggregate Bitcoin futures open interest, which has registered a 4% decline since August 26, according to data from CoinGlass.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has been in the doldrums all week after yet another attempt to push the price above $60,000 fizzled out. BTC reached a day high of $61,234, but sellers could drive the price back below $60,000 with demand drying up at upper levels. According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, Bitcoin is suffering from a hangover and has struggled to match expectations after hitting its all-time high in March. However, according to Glone, another metric suggests a deeper systemic weakness.
McGlone noted that BTC/USD is currently around 11x the value of the S&P 500, which itself is around all-time highs. McGlone noted that in 2020, BTC was on top, reaching 15x the S&P 500.
“At about 11x now, the Bitcoin/S&P 500 peak was 15x in 1Q20, and this year’s lower high was 14x. The biggest money pump in history and US ETF launches in past tense may suggest a hangover, pendulum swing back toward 7x Bitcoin/SPX.”
As we can see from the price chart, BTC has struggled to remain above $60,000 throughout August. After pushing above $64,000 on Friday, BTC stalled over the weekend, with buyers unable to push the price further thanks to significant resistance. As a result, BTC fell back in the red on Monday, dropping by 1.85% to slip back below the 200-day SMA and settle at 462,903. Tuesday saw an even bigger drop of 5.40%, which pushed the price below the 20 and 50-day SMAs. BTC also lost the $60,000 level on Tuesday, with the price settling at $59,506.
Source: TradingView
Sellers attempted to drag BTC below $58,000 on Wednesday as it dropped to a low of $57,922. However, thanks to strong lower-level demand, BTC recovered and settled at $59,082, registering only a marginal drop of 0.71%. Buyers attempted to kickstart a recovery on Thursday, with BTC briefly rising to $61,234. However, with momentum fading, BTC fell back below $60,000 and settled at $59,438, managing only a 0.60% increase. The current session sees BTC marginally down as sellers attempt to drive the price to the $58,000 support level.
Should sellers breach this level, BTC could drop to $55,000, where it could stabilize. Meanwhile, buyers will attempt to regain control and make another push towards $60,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is struggling to stay above $2,500, with buyers unable to substantially influence the price for now. ETH has struggled to reclaim the $2,850 support level, which sellers have successfully flipped to resistance. Since then, the altcoin has been trading sideways, struggling to stay above $2,700. ETH has spent most of the week in the red, starting with a marginal drop on Sunday. Selling pressure intensified on Monday, with the price dropping by 2.42% to $2,682, dipping below $2,700 once again. With the markets facing a wave of liquidations late on Tuesday, ETH fell by 8.34%, slipping below the 20-day SMA and retesting the $2,400 support level before eventually settling at $2,458.
Source: TradingView
Thanks to strong lower-level demand, ETH recovered on Wednesday, rising by almost 3% to $2,529. However, it has been unable to make any gains since Thursday, when it witnessed a failed push towards $2,600, which sellers countered. As a result, ETH was only able to register a barely noticeable increase. The current session sees ETH at $2,533, with buyers and sellers vying for control. Buyers could attempt a push towards $2,600 should they regain control. However, such a scenario seems unlikely, with upper-level demand drying up. Should sellers retain control, ETH could drop to its support level, which buyers are expected to defend.
Solana (SOL) Price Analysis
Solana (SOL) is sliding down a bearish slope as major altcoins struggle. SOL, which was finding it difficult to reclaim the $150 level, has now slipped below $140, in line with trends that hinted at a drop toward $130. SOL has spent the entire week in the red, starting with a 1.05% drop on Monday, although it managed to stay above the 50-day SMA and settle at $157. Bearish sentiment intensified on Tuesday, and SOL tanked by 6.55%, slipping below the 20, 50, and 200-day SMAs. Tuesday’s drop also led SOL to slip below $150 as it settled at $146.
Source: TradingView
Sellers attempted to drive SOL below $140 on Wednesday as it dropped to a low of $140 before climbing to $143. However, this was still a noticeable decline of 1.99%. SOL remained in the red on Thursday, dipping to $140, with sellers on the verge of breaching $140. This level was breached during the ongoing session as SOL dipped to $139. If SOL remains bearish, the price could drop to $130 or even lower, signaling the beginning of a bearish phase for the altcoin. With the MACD turning bearish, SOL could continue dropping unless a trigger brings bullish momentum.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) has been trading sideways since Tuesday, with neither buyers nor sellers able to exert substantial influence in the market. DOGE fell into the red after reaching $0.112 on Friday. It could not push above the 50-day SMA and dropped to $0.109 by Sunday. The current week began with DOGE continuing to drop, registering a drop of almost 4% to settle at $0.105. Tuesday’s drop of 5.99% saw DOGE slip below the 20-day SMA and lose the crucial $0.100 support level as sellers yanked the price down to $0.998. However, sellers lost influence at lower levels, and DOGE managed a marginal recovery on Wednesday and settled at $0.995.
Source: TradingView
The popular meme coin reclaimed $0.100 on Wednesday after registering an increase of 0.90%. The current session sees DOGE marginally up as buyers look to consolidate above $0.100. If buyers continue to keep DOGE above $0.100, we could see an attempt to move above the 20-day SMA to $0.110. However, should sellers retake control, they could attempt to push DOGE back below $0.100. Should this happen, DOGE could slip to $0.095 or $0.090.
Ripple (XRP) Price Analysis
Ripple (XRP) has been considerably bearish this week, falling to its support level of $0.55 before rebounding. The altcoin has registered a drop of almost 2% in the past 24 hours and over 6% during the past week. XRP fell into the red on Sunday after buyers failed to move above $0.65. As a result, the price fell by 2.04% to $0.60. XRP slipped below $0.60 on Monday after starting the week on a bearish note, with a 2.18% drop to $0.58. Sellers tested XRP’s support levels on Tuesday as it slipped below the 20 and 50-day SMAs and hit a day low of $0.55. However, buyers prevented the price from dropping further, pushing XRP to a close of $0.56.
Source: TradingView
Buyers attempted to start a relief rally on Wednesday, pushing XRP to a day high of $0.58. However, with sellers actively defending the moving averages, buyers lost steam, and XRP fell back below the moving averages and settled at $0.56, managing only a marginal increase. Sellers resumed control on Thursday as XRP fell by 1.35%. The current session sees XRP marginally up as buyers and sellers struggle to establish control. XRP has strong support at $0.55, and sellers are struggling to breach this level. If demand picks up and buyers gain momentum, XRP could push above the moving averages. A close above these levels could open the door for a push towards $0.60.
Polkadot (DOT) Price Analysis
Polkadot (DOT) struggles to regain momentum after failing to push above $5. DOT’s steady increase, which began on August 16, saw the asset climb from a low of $4.22 to $4.98 before buyers lost momentum in the face of strong resistance at the $5 level. As a result, DOT fell into the red on Sunday to end the previous week at $4.82. The current week began with DOT firmly in the red, as it fell over 5% to go below the 20-day SMA and settle at $4.56. Buyers attempted a reversal on Tuesday but, with overall sentiment still bearish, were unsuccessful. Instead, sellers re-established control, and DOT dropped by almost 4% to $4.38.
Source: TradingView
DOT tested the $4.20 support level on Wednesday after dropping 2.74% to settle at $4.26. With strong demand at this level, buyers attempted a recovery on Thursday, pushing DOT to a day high of $4.40. However, with demand drying up at upper levels, DOT fell back in the red and registered a marginal decline to settle at $4.25. With buyers entering the market at lower levels, DOT is currently up by 1.65% as buyers attempt another recovery. But can they be successful?
If buyers can support DOT’s current recovery and push it above $4.50, then a push back to $5 could be possible. Sellers will attempt to retake control and drive DOT below $4.20. However, bulls are expected to defend this level and prevent a further drop.
Akash Network (AKT) Price Analysis
AI-based tokens such as Akash Network (AKT) began the week on a hugely positive note, backed by the expected robust numbers in the Nvidia earnings report. This can be seen in the price chart, which shows AKT starting the week with an 8.36% increase and rising to $2.99. We can also see that buyers strongly attempted to push higher, with AKT reaching a high of $3.48. However, sellers thwarted this price action, and with AKT rejected from the $3 resistance level, sellers gained the upper hand. As a result, AKT dropped almost 8% on Tuesday, dropping to $2.76.
Source: TradingView
The price continued to drop on Wednesday, with AKT registering a 4.02% drop and settling at $2.65. Sellers tested the $2.50 support level on Thursday as AKT dropped to a low of $2.48. However, with strong demand at this level, AKT could climb to $2.57 and register a decline of 2.83%. The current session sees buyers in control, with AKT up almost 5% as buyers attempt to retest resistance levels at $3.
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.
