Bitcoin (BTC) is inching towards the $57,000 mark after registering an almost 4% increase over the past 24 hours. BTC bulls are trying to push the price back inside the range, indicating that markets have rejected the current breakdown. However, BTC’s recent recovery has failed to rekindle investor interest in crypto or crypto startups.
According to Graph Foundation director Eva Beylin, growing interest in AI startups could be diverting funds from crypto and crypto startups, suggesting that diminished investor interest despite a growing crypto market seemingly supports this hypothesis. However, the Graph Foundation director theorized that the lack of interest could also be due to a lack of awareness about the latest crypto developments.
BTC Fails To Turn Investor Interest
Graph Foundation pointed to a significantly larger amount of capital raised by AI firms in fewer funding rounds than by crypto firms to support its theory. Xai, Elon Musk’s AI firm, reportedly raised $6 billion in a single round. In comparison, data from the Pitchbook report showed crypto firms could only raise $2.7 billion in Q2 of 2024. While this was a 2.5% increase, data also showed the number of such deals declining by 12.5%. The drop in VC interest in crypto comes against a growing crypto market, reinforcing the idea that crypto markets have failed to reignite investor sentiment for the time being. Another report stated that VCs were preferring to invest in early-stage startups over later-stage ones,
“Since the crypto market has historically yielded strong returns for early-stage investors, many VCs continue to prioritize early-stage investments. The relatively low number of initial public offerings (IPOs) may have diminished interest — at least in the short term — in growth equity rounds, leading to a greater focus on early-stage opportunities.”
Bitcoin And Ethereum ETFs Continue To Bleed Out
While Bitcoin (BTC) has registered an impressive recovery that has put it within touching distance of the $57,000 price level, spot Bitcoin ETFs have continued to struggle. Over the past few days, the recent weakness has resulted in outflows totaling a staggering $1.2 billion from US-based spot Bitcoin ETFs. Julien Bittel, the head of Macro Research, stated that he believes BTC’s price action is similar to that of 2019 and could be nearing an inflection point, following which major price movements could be seen.
Spot Ethereum ETFs have also registered a negative net flow. Data from Farside Investors shows that spot Ethereum ETFs registered a net outflow of $6 million on September 6. Some ETFs, such as BlackRock’s ETHA and Fidelity’s FETH, have registered some inflows. However, Grayscale’s ETHE ETF has registered such significant outflows that it has pushed the net flow negative. Several factors are behind the lackluster performance of ETH ETFs.
The Ethereum-to-Bitcoin ratio has dropped 50% over the past couple of years, leading many ETH users to migrate to alternatives or switch to Layer-2 solutions. ETH has also become inflationary, and recent updates and features such as Proto-Danksharding have reduced Layer2 transaction fees, further reducing Ethereum’s overall revenue.
Kamala Harris’ Policy Positions Don’t Mention Crypto Or Bitcoin
Democratic presidential candidate Kamala Harris has released a list of proposed policy positions should she win the elections. However, the policy positions did not mention Bitcoin or any other cryptocurrency. The campaign website has a section that talks about supporting American innovation and workers, pledges support for the growth of the AI sector and highlights the importance of fostering cutting-edge technologies in the future.
Some market watchers have taken the paragraph as a subtle nod to crypto. However, the Democratic presidential candidate has yet to mention crypto. Crypto analysts eagerly await election results and believe the outcome could significantly impact investor sentiment, the laws around crypto, and the growth of digital assets.
“It is important to realize that the elections will assume paramount importance in shaping the future of digital assets, blockchain solutions, and the overall context of the crypto sphere.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered an increase of almost 4% over the past 24 hours, briefly retaking the $57,000 mark before dropping to its current level of $56,900. BTC registered an intra-day high of $58,100 on Monday, but strong upper-level resistance forced the price back to below $58,000. BTC’s Monday bounce came as traditional stocks also registered a strong recovery after taking a drubbing last week. However, despite Monday’s increase, BTC remains 3% lower for September and over 20% lower since March’s record high. According to Greg Cipolaro, the global head of research at NYDIG, BTC lacks a near-term catalyst to kickstart a strong bullish trajectory.
“Unfortunately, potential upcoming near-term catalysts for bitcoin are sparse at the moment.”
As many have pointed out, August and September have historically been weak months for BTC prices. However, October and the fourth quarter, in general, are expected to witness strong price action. BTC’s path to $58,000 and above is currently blocked by strong resistance around the $57,000 level.
Source: TradingView
As we can see in the price chart, BTC dipped to a low of $52,622, potentially marking a bottom before lower-level demand pushed it back above $54,000. BTC eventually ended Friday at $54,205, down by 3.54%. However, it recovered over the weekend, registering a marginal increase on Saturday and a 1.25% increase on Sunday to settle just below the $55,000 level at $54,978. BTC reclaimed $55,000 on Monday after surging over 4% and pushing to $57,079. BTC reached a day high of $58,100 as well but fell back to $57,079 thanks to significant resistance at upper levels. The current session sees BTC down marginally as sellers look to drive BTC back below $57,000.
Bears are losing momentum at lower levels and cannot sustain the breakdown. Currently, we are witnessing a tough battle between buyers and sellers to claim the $57,000 level. Should sellers win, BTC could drop towards $55,000. If this level is breached, it could drop as low as $52,500. Alternatively, should buyers regain control of the session and push BTC above $57,000, it would indicate sellers are losing grip. In such a scenario, BTC could push toward the 20-day SMA and the $59,000 level.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has made a slow recovery over the weekend compared to BTC and has failed to reclaim the $2,400 level so far. Buyers must now defend the $2,300 level to ensure the price does not slip back towards $2,100. Bearish sentiment around ETH had been growing steadily and registered a significant jump last week after a failed move to push above the 20-day SMA allowed sellers to drag the price to a low of $2,304 on Wednesday. However, ETH recovered thanks to lower-level demand, eventually registering an increase of 1.01% and settling at $2,451.
Source: TradingView
ETH fell back into bearish territory on Thursday, dropping by 3.34% to slip below $2,400 and settle at $2,369. The price continued to drop on Friday as sellers dragged ETH to a day low of $2,150, with market watchers worried ETH could collapse below $2,000 if the selloff continued. Thankfully, traders bought the dip, pushing ETH from $2,200 to $2,226. This was still a decline of over 6% compared to Thursday. The weekend saw demand pick up, with ETH rising by 221% on Saturday and 1% on Sunday to settle at $2,298. ETH reclaimed the $2,300 price level on Monday, registering an increase of almost 3% to move to $2,360. The current session sees ETH marginally down as buyers and sellers struggle to establish dominance.
Sellers will look to drive ETH below $2,300. ETH could tumble to $2,100 or even $2,000 if the price drops below this level. On their part, buyers will defend $2,300 with all their might to prevent another downturn. Should buyers reclaim $2,400, it will signal waning bearish momentum, and we could see a push to $2,500 should bulls maintain momentum.
Solana (SOL) Price Analysis
Solana (SOL) is up almost 5% over the past 24 hours as strong bullish momentum took the altcoin past $130, a level it struggled to overcome. Investor interest in SOL increased over the weekend, prompting the MACD to flip bullish, as seen in the price chart. SOL, which has been dropping since being rejected from the $160 level during the last week of August, may have hit a bottom on Friday when its price tanked to a low of $120. The $120 support level had been tested several times and held firm each time. This time was no different as demand picked up at $120, allowing buyers to prop SOL back above $125. SOL eventually ended Friday at $125.11, down by 3.38%.
Source: TradingView
Demand picked up over the weekend as SOL registered an increase of 2.16% on Saturday to move to $127.81. A 1.84% increase on Sunday allowed SOL to reclaim $130, a level it had struggled to push above. Sellers attempted to drive SOL back to $120 on Monday as it fell to a low of $127. However, buyers countered the selling pressure, allowing SOL to register an increase of 3.81% and move to $135, a level where it faces strong resistance. The current session sees SOL marginally up as buyers and sellers struggle to gain the upper hand.
Should buyers come out on top, SOL could push above the 20-day SMA and $140, indicating that bulls are gaining the upper hand. However, sellers will look to retake control and push SOL back below $130.
Dogecoin (DOGE) Price Analysis
Dogecoin’s (DOGE) weekend recovery picked up on Monday as it finally broke above the 20-day SMA and the $0.100 level. DOGE had been struggling to push above the 20-day SMA since dropping below it on August 27, as sellers consistently thwarted every effort by buyers to go above it and reclaim $0.100. After another failed attempt on Thursday, bearish sentiment around DOGE picked up on Friday as it registered a drop of almost 7% and fell to $0.092, bringing the $0.090 support into focus.
Source: TradingView
With demand picking up at lower levels, DOGE recovered over the weekend, registering an increase of 3.36% on Saturday and 0.94% on Sunday to settle at $0.096, still short of reclaiming $0.100. That changed on Monday as DOGE surged almost 8% to break above the 20-day SMA and $0.100 to settle at $0.103. The current session sees DOGE marginally up as buyers look to consolidate and push above the 50-day SMA to $0.110. As we can see in the price chart, the MACD has flipped to bullish, indicating that the bulls have the advantage and DOGE’s upward push could continue.
Ripple (XRP) Price Analysis
Ripple (XRP) ’s relief rally has stalled around the $0.54 mark, as it faces strong resistance around $0.55. XRP slipped below $0.55, a key support level, and the 200-day SMA on Thursday when it registered a drop of 2.43%. Bearish sentiment dominated on Friday as XRP fell to an intra-day low of $0.50. However, with demand picking up at this level, buyers could register a recovery of sorts, pushing XRP to $0.52. XRP eventually ended Friday with a drop of 4.40%.
Source: TradingView
The weekend saw XRP’s relief rally take hold, as it registered a 0.77% increase on Saturday and a 0.88% increase on Sunday to settle at $0.52. The current week started with XRP continuing its push towards $0.55, with an increase of almost 2% to move to $0.53. The current session sees XRP marginally up as buyers look to build momentum for a push above $0.55.
Cardano (ADA) Price Analysis
Cardano (ADA) surged over the weekend as it reclaimed a crucial level, which is a clear indication that bears are losing their grip and bulls are gaining momentum. ADA dipped below $0.32 on Tuesday, when it fell to $0.31 after a drop of 5.36. Sellers attempted to drag ADA below $0.30 on Wednesday, but bulls defended the level, eventually gaining the upper hand and pushing the price up by 1.57% to $0.32. However, with sellers having flipped this level, ADA could not push higher. An attempt to reclaim this level was thwarted once again on Thursday, with buyers only able to push the price up by 0.62%.
Source: TradingView
Selling pressure intensified on Friday as sellers drove ADA to a low of $0.30. However, buyers could defend this level thanks to strong demand at lower levels. ADA eventually registered a drop of 3.08% to settle at $0.34. The weekend saw ADA make a strong recovery, registering an increase of 3.49% to move to $0.32. The price broke above this level on Sunday after registering an increase of 3.99% to move to $0.33. Buyers attempted to push above the 20-day SMA on Monday but were thwarted thanks to strong selling pressure. Despite this, ADA registered an increase of 1.18% and moved to $0.34. The current session sees ADA marginally down as sellers look to push the price back toward $0.32.
If successful, ADA could drop to $0.32. If this level is breached, the price could tumble to $0.30 or lower.
Tron (TRX) Price Analysis
Tron (TRX) registered an impressive rally over the weekend. However, its upward push has stalled thanks to the resistance at the $0.155 level. TRX had been trading in a downtrend since August 26 and hit a low of $0.146 as bearish sentiment peaked. However, thanks to strong support around $0.145, TRX recovered over the weekend, starting with an increase of 2.55% on Saturday to reclaim $0.150 and move to $0.151. TRX continued to push higher on Sunday, rising by 1.30% and moving to $0.153.
Source: TradingView
The current week began with bulls still in control as TRX registered a marginal increase of 0.57% and moved to $0.154. However, with strong resistance at $0.155, TRX has stalled during the current session and is down by almost 1% as sellers look to drive the price back toward $0.150.
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.
