Bitcoin (BTC) briefly hit $58,000 early in today’s session, but selling pressure forced the price back below $57,000. The world’s largest cryptocurrency continues to face resistance at upper levels, causing bulls to lose momentum.
Analysts are worried BTC and the larger crypto market may be slipping into a bear market given its inability to reclaim the $60,000 level and move to the 200-day SMA. This is why BTC’s recent gains have been met with skepticism. Exchange inflows have also registered a noticeable uptick, suggesting profit-taking. BTC has historically performed poorly in September, adding to the market’s nervousness.
September Blues For BTC
The overall market sentiment remains bearish, with the Bitcoin Fear and Greed Index at 33, indicating that investors were bracing for price dips in September. A market by NYDIG suggested BTC and the crypto market could be “stuck in a seasonal slog” for the next month. The report further added,
“On average, Bitcoin has fallen 5.9% in September, and the median return is -6.0%. That’s not much solace given that September is just starting.”
Analysts believe the current sentiment could change by the end of the month, and BTC could be headed for three straight months of upside in the last quarter of the year. Another indication of the current bearish trend is a peak in exchange inflows. CryptoQuant data shows spot exchanges jumped to 18,193 BTC on September 9, a significant jump from the 2,535 BTC posted a day prior. The surge coincided with a recovery in the BTC price, indicating profit-taking and suggesting investors anticipate a bearish outlook and are looking to cut their losses. As such, buying activity has also remained low.
Exchange Volumes Reflect Reduced Trading Appetite
Glassnode data has also shown a visible decline in trading activity over the last quarter, with traders still unconvinced about the short term. According to a report by Glassnode, investors have reduced their interaction with centralized exchanges as volumes contract across the board. According to the report, centralized exchanges are key in determining speculative activity and price discovery in the crypto market. Glassnode evaluated on-chain volumes across centralized exchanges to determine investor activity.
“This underscores a decline in investor demand and less trading by speculators within the current price range.’ Bitcoin exchange volume momentum.’”
Altcoins Remain Strong Despite BTC Downturn
Meanwhile, altcoins have remained strong despite Bitcoin (BTC) ’s recent struggles. According to analysts, this suggests investors are looking at and adjusting how they safeguard their capital during periods of market uncertainty. Bitfinex analysts stated,
“The shift hints at a potential regime change where investors are exploring value in altcoins, diverging from the typical pattern of flocking to Bitcoin during downturns. Altcoin markets have shown resilience.”
Analysts also pointed out that along with BTC’s price decline, its share in the crypto market also dropped 1.3%. However, the market capitalization of cryptocurrencies outside the top ten increased by 4.4%. The open interest (OI) for altcoins also dropped 55% from its all-time high, which, according to Bitfinex analysts, is a signal of speculative apathy and potential exhaustion among sellers.
“The strength altcoins have shown in the latest correction, and the bounce with a relatively low Open Interest pump is a sign of sustained strength. It is very likely that selection altcoins will continue to outperform Bitcoin both towards the downside and upside moving forward. The parabolic altcoin phase of the cycle is close. Very close.”
Can Upcoming CPI Data Flip Momentum?
Traders are now focusing on the upcoming US Consumer Price Index (CPI) data, which will be released on Wednesday, with expectations the August CPI print will come in at 26%, a drop from the 29% registered in the previous month. Positive inflation data will strengthen the Fed’s case for easing interest rates next week. US Treasury Secretary Janet Yellen outlined the importance and expectation of rate cuts, adding that the economy was healthy and heading for a recovery.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) ETFs continued to register outflows, with the cryptocurrency dipping below $57,000 after jumping to $58,000 during early trading. While BTC has shown signs of a recovery, traders are selling on rallies, and there are few catalysts to spark a significant rally. However, while it’s all doom-and-gloom for September, October has registered positive returns in nine of the past eleven years, recording average gains of just under 23%. The broader crypto market also registered a bounce early in trading but has since dipped back into the red, registering drops between 1% and 2%.
BTC faces a strong level of resistance at $58,000, a level it has struggled to reclaim since the beginning of September. BTC fell below $58,000 on September 1 after a drop of almost 3%, which lowered the price to $57,398. Since then, buyers have attempted to reclaim and consolidate above $58,000 and push towards $60,000 but have been unsuccessful, with intense selling pressure ensuring buyers lose steam. Bearish sentiment intensified last week as BTC lost the $55,000 level on Friday and dropped to a day low of $52,622, bringing the $52,000 support level into focus. However, demand picked up at lower levels, allowing buyers to stage a recovery of sorts and push BTC back above $54,000. BTC ended Friday at $54,205, down by 3.54%
Source: TradingView
The weekend saw buyers return to the market as BTC registered a marginal increase of 0.18% on Saturday and a 1.25% increase on Sunday to end the weekend at $54,978. Positive sentiment persisted on Monday as BTC reclaimed the $55,000 level after an increase of almost 4% and moved to $57,079. Buyers attempted to push $58,000 as well but were thwarted thanks to strong selling pressure. Tuesday saw BTC register an increase of just over 1% and move to $57,662. Once again, sellers thwarted a move to $58,000, and BTC fell back in the red during the ongoing session. BTC is currently down almost 2%, trading at $56,573.
Sellers are trying to drive BTC below $55,000 once again. However, buyers are expected to defend this level and prevent further downside. Should this level break down, BTC could slide to $52,000. Buyers lack demand at upper levels, which is why all moves to push above $58,000 are breaking down. A push above $58,000 could see buyers set their sights on the $60,000 level, but they need a catalyst to spark sustained upward momentum.
Ethereum (ETH) Price Analysis
Ethereum (ETH) ’s attempt to reclaim the $2,400 broke down during the current session as sellers overwhelmed buyers close to the resistance level. ETH has struggled recently and dipped below the 20-day SMA and $2,600 towards the end of August. Subsequent attempts to reclaim the level also failed, with sellers actively defending the level and the 20-day SMA acting as a dynamic level of resistance. Bearish sentiment intensified last week, and by Friday, ETH dipped below $2,200, reaching a low of $2,150 before a marginal recovery allowed it to settle above $2,200.
Source: TradingView
ETH recovered over the weekend as buyers entered the market at lower levels, registering an increase of 2.21% on Saturday and 1% on Sunday to settle at $2,298. It reclaimed the $2,300 level on Monday after a 2.71% increase, pushing it to $2,360. Sellers attempted to drive ETH back below $2,300 on Tuesday, but buyers countered the selling pressure and registered an increase of 1.24% to move to $2,389. Any hopes for a push above $2,400 were dashed during the ongoing session as buyers took over. As a result, ETH is down over 2%, trading at $2.338.
ETH has support at $2,300, and buyers will try to keep ETH above this level despite the selling pressure. Should this level break, the next level of support lies at $2,100. Buyers will look to consolidate above $2,300 and bide their time for a move above $2,400. A push above this level could open the door for $2,500.
Solana (SOL) Price Analysis
Solana (SOL) fell short of the $140 mark as the price fell back in the red during the current session as buyers lost steam after pushing above $135. SOL has been extremely bearish in recent sessions and dropped to an intra-day low of $120 on Friday as selling pressure peaked. However, buyers pushed the price to $125 as SOL ended the day down by 3.38%. SOL recovered along with the rest of the markets over the weekend, registering a 2.16% increase on Saturday and a 1.84% increase on Sunday to reclaim $130.
Source: TradingView
Bullish sentiment persisted on Monday as SOL rose almost 4% to $135, a key resistance level. Tuesday saw SOL experience significant volatility as buyers and sellers struggled to establish dominance. Buyers attempted to build on their momentum and push towards the 20-day SMA and $140. On the other hand, sellers attempted to drive the price back below $135. Ultimately, neither succeeded, as SOL could register only a marginal increase. However, SOL fell into the red during the current session as buyers lost steam above $135. As a result, sellers took control, and SOL went down by 2.39%, trading around the $132 mark.
If SOL slips below $130, it means sellers have the upper hand. In such a situation, SOL could dip back to $120 before rebounding. Should SOL recover and climb back above $135, we could see another attempt to overwhelm the bears at $140. Should SOL push above this level, $150 could be the next stop.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has continued to drop after its rally stalled at the 20-day SMA, with buyers unable to counter the selling pressure. DOT, which had been trading in a downtrend since August 25, fell below $4 on Friday as it plunged to an intra-day low of $3.82. However, demand picked up with DOT getting close to its multi-year support of $3.62, allowing DOT to recover and settle at $3.96. DOT reclaimed $4 on Saturday as demand returned, increasing 3.28% to settle at $4.09.
Source: TradingView
Sunday saw DOT continue its upward trajectory with a 1.96% increase, which allowed it to rise to $4.17. The current week began with buyers maintaining control as DOT rose by 2.88% to $4.29. However, with the 20-day SMA coming into play as a dynamic level of resistance, buyers lost steam, and DOT fell back on Tuesday, dropping by 0.93%. DOT remained in the red during the ongoing session as well and is currently down almost 3%, trading at $4.13. DOT has strong demand at lower levels but is drying up at upper levels, causing buyers to lose momentum. For now, buyers must ensure DOT does not dip below $4. If DOT rebounds, it could retest the 20-day SMA again. A break above it could see a move to $4.50 materialize.
Optimism (OP) Price Analysis
Optimism (OP) is up almost 17% over the past week, thanks to a strong rebound after dipping to a low of $1.29 on Friday. OP had been struggling to push above the 20-day SMA since August 27. However, that changed in recent sessions as buyers returned to the market over the weekend, allowing OP to push above crucial moving averages and the $1.60 level. After ending Friday on a bearish note, OP registered a significant jump of 6.04% on Saturday, rising to $1.41. Sunday saw buyers attempt to push above the 20 and 50-day SMAs. However, sellers could counter them and push OP down to $1.42 after a day high of $1.47. Eventually, OP could register only a marginal increase.
Source: TradingView
Positive sentiment picked up on Monday as OP surged almost 8% to move above the 20 and 50-day SMAs and settle at $1.53. The price continued to increase on Tuesday, claiming the $1.60 level and rising to $1.61 after an increase of 5.46%. However, sellers were able to retake control during the ongoing session. Currently, OP is down by almost 3% and trading around the $1.56 mark. Sellers will attempt to push OP back below the moving averages toward $1.40. On the other hand, buyers will look to reclaim the $1.60 level.
Bittensor (TAO) Price Analysis
Bittensor (TAO) is up over 8%, driven by a strong surge on Monday that saw it reclaim $250 and push above a crucial resistance level. Like other cryptocurrencies, TAO has been bearish since the last week of August and dipped to a day low of $220, going below the $240 support level. However, the price made a strong recovery over the weekend, rising to a day high of $246 before sellers drove the price down to $235. Despite the selling pressure, TAO registered an increase of 1.60%. Bulls continued to control the market on Sunday, pushing the price up by 4.66% to $246.
Source: TradingView
The current week began with an incredible surge as TAO rallied by 12.47%, surging past $250 and settling at $276, bringing it within touching distance of the resistance at $280 and the 20 and 50-day SMAs. TAO continued to push higher on Tuesday but faced significantly more selling pressure. Despite this, TAO moved past $280 and the moving averages to settle at $287. Thanks to intense selling pressure at these levels, TAO is back in the red during the current session, down by almost 4% and trading around the $275 mark. Should buyers retake control, TAO could attempt to move past $300. However, if selling pressure persists, the price could drop to $250.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has been trading on an upward trajectory since bouncing off its support level on September 1. UNI’s recovery has allowed it to push above $6 and the 20-day SMA, which was acting as a strong resistance level. Despite its strong rebound, UNI faced significant bearish pressure last week as markets dipped. As a result, UNI fell below the 20-day SMA, dipping to a day low of $5.88 before reclaiming $6. The price recovered on Saturday after UNI registered a jump of almost 4%, allowing it to move back above the 20-day SMA and settle at $6.43. Sellers attempted to push UNI back below the 20-day moving average but could not, with the price settling at $6.32.
Source: TradingView
The current week began with UNI rebounding from the 20-day SMA, registering an increase of 6.51% to push above the 50-day SMA and settle at $6.73. With strong resistance at $6.75, UNI encountered significant selling pressure, forcing the price down to a low of $6.50. However, the price rebounded from the 50-day SMA, eventually registering a drop of only 0.48%. The current session sees buyers back in control, having thwarted another attempt by sellers to push UNI below the 50-day SMA. UNI is currently up by almost 1%, trading at $6.76, as it looks to go above the resistance and move to $7.
FET Price Analysis
With AI coins performing admirably over the weekend, FET has been no different, making a strong recovery after a bearish week saw it almost dip below $1 on Friday as sellers dominated the market. Sellers attempted to push the price lower on Saturday, but with demand picking up at lower levels, buyers prevented a substantial fall, with FET dropping only marginally. With strong support at $1 and the 50-day SMA acting as a dynamic level of support, FET recovered on Sunday, registering an increase of 3.18% and settling at $1.09. FET continued its upward trajectory on Monday, registering an increase of almost 10% to push above the 20-day SMA and settle at $1.20.
Source: TradingView
Tuesday saw an even bigger increase of 11.06%, as FET went past $1.30 and settled at $1.30. Buyers also attempted a move past $1.35 but were unsuccessful. With sellers active at $1.35, FET is down by 2% during the ongoing session as bears look to drag the price below $1.30.
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.
