Bitcoin (BTC) saw a brief foray above $58,000 on Thursday following the release of US inflation data and Federal Reserve rate cut bets. US consumer prices bumped up slightly in August, but core inflation remained persistent, with the Core Consumer Price Index increasing by 0.28%, compared to an anticipated 0.2% increase. The likelihood of a 25 bps rate cut increased from 66% to 85%, while the chances of a 50 bps rate cut dropped from 34% to 15%.
Meanwhile, Bitcoin and other crypto-related stocks recovered after a noticeable drop following the Trump-Harris debate. Opinion polls suggested that Harris won the debate against the former president, revealing that voters preferred Harris’s debate performance over Trump. However, BTC still faces uncertainty following the debate after neither candidate talked about crypto or crypto regulations.
Bitcoin (BTC), Crypto Stocks Recover
BTC and other crypto-related stocks plunged following the debate between Kamala Harris and Donald Trump on September 11, after opinion polls showed Harris outperformed Trump during the debate. However, most crypto-related stocks closed only slightly lower after mounting a quick recovery. Coinbase shares regained 5.3% following a drop to $150 on September 11, returning to its pre-debate level of $157. MicroStrategy also registered a significant drop, falling to $122 before recovering and closing at $129. Similarly, BTC miners Marathon Digital and Riot Platforms also registered early declines, falling by 0.94% and 2.07%, respectively.
Uncertainty Around Bitcoin
Bitcoin (BTC) faces uncertainty after the latest presidential debate failed to address questions regarding economic policy and crypto regulations. Analysts have stated that the lack of discussion regarding crypto and crypto regulations has left many stakeholders disappointed. Tim Kravchunovsky, the CEO of Chirp, stated that the lack of attention towards crypto from the presidential candidates suggests the industry needs to drive its own initiatives, regardless of political outcomes.
Both candidates failed to mention crypto, which is being viewed by many in the community as a significant oversight, primarily because those in the crypto space were expecting to have some clarity following the debate. According to a note by QCP Capital, investors were feeling apprehensive thanks to a lack of solid economic policies from both candidates. QCP Capital analysts also flagged a potential increase in market volatility thanks to the lack of a decisive economic narrative.
Leverage In BTC Markets Sees Jump
Leverage in the Bitcoin markets has registered an uptick, pointing to increased risk appetite among investors. This clearly indicates that investors are willing to take on more risk, potentially increasing market volatility. The estimated leverage ratio, a metric that divides global futures open interest by the number of coins held on exchanges, has risen to 0.2060, the highest level since October 2023. The jump in the ratio comes after a significant period of consolidation below 0.20, indicating traders have been using borrowed funds to amplify future positions.
The estimated ratio peaked following the collapse of FTX. Leverage allows traders to control large positions without sacrificing too much capital, magnifying profits and losses, making it a double-edged sword for investors because it exposes them to margin shortages and forced liquidations when the market goes against the position they have taken.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has stalled at the $58,000 level despite briefly pushing above it on Thursday and then again early during the ongoing session. BTC has remained relatively positive this week, considering it dipped below $53,000 last Friday. However, positive price action this week saw BTC push above $55,000 and test the resistance at $58,000. BTC’s push toward $58,000 began over the weekend, with a marginal increase on Saturday and a 1.25% jump on Sunday to settle at $54,978. Monday saw a substantial jump of almost 4%, allowing BTC to push above $55,000 and settle at %57,079. Buyers also attempted a move above the $58,000 resistance level but were thwarted.
Source: TradingView
Tuesday saw yet another attempt to move past the resistance, as BTC rose to a day high of $58,080. However, the move broke down, and BTC ended the day at $57,662, registering only a jump of 1.02%. Sellers attempted to yank BTC below $55,000 on Wednesday, driving it to a day low of $55,592, but thanks to strong lower-level demand, it could recover to some extent. BTC eventually ended the day at $57,356, down 0.53%. BTC recovered on Thursday following the CPI numbers and the Trump-Harris debate, registering a 1.43% increase to settle at $58,178. The current session sees BTC down by almost 0.50%, as sellers attempt to push the price back below $58,000.
According to observations by Hyblock Capital, there is significant high-level liquidity around $58,000 and $58,500. Given that overall market liquidity remains low, volatility could see an uptick as BTC crosses these levels.
“High-leverage liquidity zones around $58,500 could drive increased volatility and create opportunities for traders as Bitcoin gravitates toward these levels. Combined order book liquidity remains low, suggesting bullish potential, while the global bid-ask ratio remains positive, indicating robust underlying demand.”
If the RSI climbs above the 50% threshold, we can see an uptrend in the short term. If buyers can keep it above the 20-day SMA and the $58,000 price level, BTC could move to $60,000 or higher. However, should BTC fail to push above these levels, a decline to $55,000 will be the most likely outcome. Should this level break, a drop to $52,000 or $50,000 can be expected.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is consolidating between $2,300 and $2,400 as it hovers at a crucial juncture, which could see it push above $2,400 or fall back to $2,200. ETH has struggled to reclaim the $2,400 level despite a relatively strong rebound after it fell to a low of $2,150. A weekend recovery allowed ETH to recover and push above $2,200, ending Sunday at $2,298. The current week began with buyers continuing to exert control, as ETH registered an increase of 2.71%, moving above $2,300 and settling at $2,360. Sellers attempted to push ETH back below $2,300 on Tuesday, but demand picked up at lower levels, allowing buyers to counter the selling pressure. As a result, ETH registered an increase of 1.24% and settled at $2,389.
Source: TradingView
The resistance at $2,400 came into play on Wednesday, allowing sellers to take control. ETH dropped to a low of $2,281, but once again, investors bought the dip, pushing the price back above $2,300 to $2,342. ETH attempted another push above $2,400 on Thursday but could only register a marginal increase, settling at $2,363. The current session sees sellers back in control, with ETH down marginally and trading at $2,345. With ETH consolidating between a narrow range, it faces an uphill task pushing above resistance levels.
ETH has already struggled to push above $2,400, with sellers actively defending the level. If buyers can gain momentum and push ETH above $2,400, the next resistance level sits at $2,500. A break above this level could open the door for a path towards $2,700. On the flip side, if sellers gain the upper hand, ETH could drop below $2,300 and go as low as $2,100.
Solana (SOL) Price Analysis
Solana (SOL) failed to push above $140 on Thursday, continuing to consolidate below the 20-day SMA. SOL registered a strong recovery this week after dipping to a low of $120 last Friday. By Sunday, it had risen to $130. SOL continued to push higher on Monday, registering an increase of almost 4% despite facing significant selling pressure. This allowed it to settle at $135. On Tuesday, the price saw considerable volatility as buyers and sellers attempted to exert influence. Buyers tried to push SOL above $140, while sellers looked to push it below $130. Ultimately, SOL could only register a marginal increase of 044%.
Source: TradingView
Sellers took control on Wednesday, dragging SOL to a day low of $128. However, demand increased at lower levels thanks to investors buying the dip. As a result, SOL pushed back above $130 and settled at $132, a decline of almost 2.50%. SOL recovered with the rest of the markets on Thursday, registering an increase of almost 3% to settle at $136. The current session sees SOL down by 1.45%, trading around the $1.35 mark. Sellers will look to drive SOL below $130. However, buyers are expected to defend this level and prevent a drop to $130. Should this level be breached, SOL could drop to $120.
Should buyers regain control, they will attempt to push SOL above the 20-day SMA and $140. A break above this level could see SOL push to $150.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) failed to push above the 50-day SMA or stay above the 20-day SMA as its ascent stalled following Monday’s impressive surge. WIF registered an increase of 6.32% on Monday, rising above the 20-day SMA and pushing above $1.60 to settle at $1.66. WIF also attempted a push above the 50-day SMA but could not do so, thanks to strong selling pressure. With selling pressure increasing, WIF fell by 1.23% on Tuesday, dropping to $1.64. Selling pressure intensified on Tuesday, and WIF fell almost 7%, slipping back below the 20-day SMA and $1.60 to $1.54.
Source: TradingView
Buyers attempted to counter the selling pressure but could only manage a 1.22% increase after failing to push back above $1.60. As a result, WIF settled at $1.56. The current session sees WIF down by almost 2%, as sellers look to drive the price below $1.50. If they are successful, WIF could drop to its support level of $1.40. A rebound from this level could push it back above $1.50. WIF faces strong resistance at $1.60. If buyers can push above this level, the next crucial levels are $1.70 and $1.75.
Polkadot (DOT) Price Analysis
Polkadot (DOT) saw a significant development on Thursday that could act as a catalyst in driving it toward $4.50. On Thursday, DOT pushed above the 20-day SMA, a level it had struggled to reach in recent sessions. DOT had been trading in a downtrend since falling to push above $5 on August 24. By Friday, it dipped to a low of $3.82, bringing its multi-year support into focus once again. However, DOT began a recovery over the weekend, registering an increase of 3.28% on Saturday and 1.96% on Sunday to reclaim $4 and settle at $4.17. DOT registered an increase of almost 3% on Monday, moving to $4.29. However, it could not push above the 20-day SMA, which acted as resistance.
Source: TradingView
DOT fell back into the red on Tuesday thanks to growing selling pressure, falling by 0.93% to $4.25. Sellers attempted to drive DOT below $4 once again as it dipped to a low of $4.07. However, demand picked up, and DOT pushed up to $4.19, eventually registering a decline of 1.41%. Buying activity picked up on Thursday, with DOT registering an increase of almost 3%, allowing it to push above the 20-day SMA and settle at $4.31. The current season sees DOT up marginally as buyers look to consolidate above the 20-day SMA. If DOT can stay above this level, it could push higher and test the resistance at $4.50. A break above this level could set DOT back on the way to $5.
Bittensor (TAO) Price Analysis
AI tokens, including Bittensor (TAO), had a positive week, as prices appreciated considerably. TAO’s recovery began over the weekend after it registered a 1.60% and 4.66% increase on Saturday and Sunday, respectively, to settle at $246. Bullish sentiment intensified on Monday as TAO surged over 12%, settling at $276. Buyers also attempted to push above the 20-day SMA, as TAO rose to a day high of $285, but were thwarted, thanks to strong upper-level resistance. TAO tested this resistance on Tuesday and rose to $287 after an increase of almost 4%, pushing above the 20-day SMA.
Source: TradingView
However, with sellers highly active at this level, TAO fell back on Wednesday as it faced significant selling pressure. As a result, TAO dropped to a day low of $273 before recovering and settling at $284. Buyers returned to the market on Thursday as TAO registered an increase of 3.23% to push above the 20 and 50-day SMAs and the resistance at $290 to settle at $293. The current session sees TAO down by almost 1% as sellers look to drive it back below $290. If buyers can keep TAO above $290, a move to $300 and above could be possible. However, if TAO slips back below $290 and the moving averages, It could drop to $250 or $240.
Injective (INJ) Price Analysis
Injective (INJ) ’s rally has stalled during the ongoing session after buyers failed to push it past $20. INJ has had an impressive week so far, having risen almost 13% over the past seven days before dropping during the ongoing session. INJ began its push toward $20 on Sunday, increasing 1.43% to end the weekend at $16.24. The week began with an impressive jump of 6.37%, which allowed INJ to push above $17 and settle at $17.28. Buyers kept up their momentum on Tuesday as INJ registered a 5.31% increase to settle at $18.20.
Source: TradingView
With the 20-day SMA coming into play as a dynamic resistance level, sellers attempted to take control on Wednesday. As a result, INJ dropped to a day low of $17.63. However, it quickly recovered as buyers overwhelmed sellers and moved back above the 20-day SMA to settle at $18.74 after an increase of just over 3%. INJ maintained its bullish momentum on Thursday, pushing above the 50-day SMA and settling at $19.36. However, with sellers active at around $20, INJ fell back in the red during the ongoing session. Currently, INJ is down over 2% as sellers look to drive it back below the 50-day SMA.
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.
