Bitcoin (BTC) and the larger crypto market made an impressive recovery following the August CPI remote, with almost all major cryptocurrencies in positive territory. BTC is up 3.44%, while Ethereum (ETH) is up nearly 2%, inching toward the $2,400 mark. Other major gainers include Solana (SOL), Toncoin (TON), Ripple (XRP), and Dogecoin (DOGE).
Crypto markets remained relatively calm following the August CPI report before a steady uptick. The August CPI data showed a slight increase in the monthly inflation rate, although this was the slowest rate since 2021. Core CPI, which removes the food and energy sectors, posted an increase of 0.3% for August. Predictions are now favoring a 25 bps rate cut, as opposed to an earlier prediction of 50 bps.
Markets Calm Following August CPI Data
The Bureau of Labor Statistics released the CPI numbers on Wednesday, with the report noting the cost of almost all index items registered an increase of 2.5 percent over the past 12 months before seasonal adjustment. The report also highlighted the index for all items besides food and energy, registered a rise of 0.3% in August, following an increase of 0.2% in July. Following the release of the CPI numbers, markets remained largely flat. The Nasdaq registered a jump of almost a whole percentage point, while the S&P 500 registered minor gains. On the other hand, the Dow and Russell 2000 registered a slight decline.
BTC also held steady but recorded a dip following the Trump-Harris debate. The drop saw BTC slip below $56,000, but it quickly recovered and is currently trading above $58,000. Buoyed by BTC, other cryptocurrencies also followed a similar trajectory. Glassnode data has also shed light on Bitcoin miners, who remain resilient despite declining revenues. The mining hashrate for BTC is approaching an all-time high, with the present number of hashes required to mine a block at 338k exahash, the second-largest difficulty in BTC history.
Bitcoin (BTC) Dips Following Trump-Harris Debate
BTC declined following the US presidential debate between Kamala Harris and Donald Trump after betting markets registered a notable shift in sentiment. Harris’s odds jumped to 56%, while Trump’s declined to 48%. As a result, BTC slipped below $56,000. At the same time, stocks and bond yields registered a jump following a faster-than-anticipated inflation report, reinforcing the speculation that the Federal Reserve would gradually begin cutting rates.
During the presidential debate, Harris kept her cool while pushing back against Trump, while the former president got increasingly agitated as the debate wore on. Trump was also constantly interrupted by hosts who kept fact-checking his claims. The crypto markets declined because neither candidate mentioned crypto during the debate. Trump has been a vocal supporter of crypto, promising to end what he calls “Biden’s war on crypto.” On the other hand, Harris’s position on crypto remains unknown, adding uncertainty about a potential Harris victory in the crypto markets. Summing up the debate, Quincy Crosby, the chief global strategist for LPL Financials, stated,
“It was light on specifics from either side, and I think that those who adhere to Trump are going to believe that he won the debate, and those who are loyal to Democrats will think that she won the debate.”
Meanwhile, another analyst stated that neither made any strong economic points and introduced greater uncertainty into the market.
“Neither one of them made strong economic points, but overall, Harris came out of this better than Trump. I didn’t hear anything reassuring from either candidate. If anything, I think they introduced greater uncertainty. Markets don’t want strident statements; they want clarity.”
Could A Harris Victory Dent Crypto?
Several analysts have credited Bitcoin’s short-term success and price action to a potential Trump victory in November. Analysts from Bernstein predicted that a Trump victory could see BTC surge to $90,000 by the end of the year. Trump has repeatedly thrown his support behind the crypto industry, promising to remove anti-crypto legislation and regulation if elected and make the US the crypto capital of the world. Harris’s position on crypto remains unknown, and analysts believe a victory for Harris could drag BTC to a low of $30,000.
Meanwhile, political action committees (PACs) have raised over $200 million from major players in the crypto space and have already spent almost $95 million on the election. The largest crypto PAC, FairShake, has raised $177 million and spent just over $70 million during the 2024 election cycle, primarily in support of Democratic congressional candidates, according to data from OpenSecrets.
BTC Decouples From Gold As Bearish Phase Continues
Bitcoin (BTC) has been in a bearish phase since August and has decoupled from gold, which has been registering record highs while the world’s largest cryptocurrency continues to struggle. The correlation between BTC and gold has flipped to negative, according to data from CryptoQuant, thanks to BTC declining and sitting 20% lower than its all-time high of $73,000, registered in March. The market-value-to-realized-value (MVRV) ratio has also been below its 365-day moving average since the last week of August, suggesting a further correction could be on the cards.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) jumped over 3% during early trading to push above the $58,000 level, largely thanks to a rally in US tech stocks and positive movements in Asian equities. Despite the positive numbers, spot Bitcoin ETFs continued to see outflows, breaking a streak of two days of inflows, led by a $53 million outflow from Ark Invest’s ARKB product. BTC has steadily recovered since the weekend, rebounding from key support levels. However, the positive sentiment has not been enough to lift it and stay above $58,000 and the 20-day SMA.
BTC had dipped to a low of $52,622, bringing the $52,000 support into focus. As demand picked up at lower levels, BTC could climb above $54,000 and end Friday at $54,205. The weekend started on a positive note for BTC as it registered a marginal increase on Saturday and a 1.25% increase on Sunday to settle at $54,891. BTC reclaimed $55,000 on Monday after a 3.82% increase which saw it move to $57,079. Buyers also attempted to push above the resistance at $58,000 but were thwarted. Tuesday saw BTC move to $57,662 after a 1.02% increase. However, a move past $58,000 did not materialize yet again.
Source: TradingView
After another failed attempt to move above $58,000 on Wednesday, sellers took control, dragging BTC to a day low of $55,592, but thanks to strong demand close to $55,000, buyers could push the price back above $57,000. BTC eventually ended the day at $57,356 after declining 0.53%. The current session sees BTC up by 1% and trading around the $57,950 mark as buyers look to make yet another attempt to push above $58,000. However, it continues to face significant selling pressure closer to this level.
If BTC does manage to push above the 20-day SMA and $58,000, it would suggest that buyers are attempting to form higher lows, and indicate waning selling pressure. A push above $58,000 and the moving average will also increase the possibility of a break above the 50-day SMA and $60,000. However, BTC could drop back to $55,000 if sellers retake control. Should this level be breached, the price could drop to $52,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) continues to struggle to push above $2,400, as strong selling pressure at this level continues to act as a major roadblock. This is why ETH’s relief rally stalled on Wednesday, as momentum broke down once again, pushing the price into the red. However, buyers have kept ETH above $2,300, indicating strong demand at this level. After dipping to a low of $2,150 on Friday, ETH posted a strong recovery over the weekend, registering a 2.21% increase on Saturday and a 1% increase on Sunday to settle at $2,298. ETH reclaimed the $2,300 price level on Monday, starting the week with a 2.71% increase and moving to $2,360. Sellers attempted to drag ETH back below $2,300 on Tuesday but were countered by buyers, allowing ETH to register a jump of 1.24% and settle at $2,389.
Source: TradingView
ETH fell back into the red on Wednesday after failing to push above $2,400 as sellers dragged it to a low of $2,280. However, strong lower-level demand allowed ETH to push back above $2,300 and settle at $2,342 after a 1.98% drop. The current session sees ETH up by almost 1% as buyers attempt another move above $2,400. From the look of things, ETH is stuck between $2,300 and $2,400. If ETH slips below $2,300, it suggests bears are in control. Such a move could drag ETH to $2,100 or as low as $2,000. If buyers want to establish a foothold in the market, a move above $2,400 and the 20-day SMA is crucial. If ETH breaks above this level, it could lead to a push to $2,500, the next crucial resistance level.
Solana (SOL) Price Analysis
Solana (SOL) could be gearing up for another retest of the $140 resistance level, as buyers maintain control of the current session. SOL found strong support at around $120 and registered an impressive recovery over the weekend as it rebounded, driven by lower-level demand. As a result, SOL registered an increase of 2.16% on Saturday and 1.84% on Sunday to settle at $130. Buyers maintained momentum on Monday despite sellers trying to drag the price to $120, countering the selling pressure to register an increase of almost 4% and move to $135. The price witnessed volatility on Tuesday as buyers and sellers struggled to exert influence. Eventually, SOL registered a marginal increase as a move above the 20-day SMA failed to materialize.
Source: TradingView
With the 20-day SMA coming into play as a dynamic level of resistance, SOL fell into the red on Wednesday, dropping to a low of $128. However, demand picked up at lower levels and SOL reclaimed $130 to settle at $132, a decline of 2.39%. The current session sees buyers back in control, with SOL up almost 2% and trading around the $135 mark. Sellers will attempt to retake control of the session and look to drag SOL below $120. However, buyers are expected to defend this level vigorously because a breakdown from here could see SOL slide to $100. On the other hand, buyers must reclaim $140 and $150. This would signal sellers are losing grip, drawing buyers, and starting an upward push.
Toncoin (TON) Price Analysis
Toncoin (TON) is up almost 19% over the past week, as its recent rally saw the altcoin reclaim the $5 level and push above the 20-day SMA. As seen in the price chart, TON saw significant volatility towards the end of the previous week, dropping to a low of $4.46 before recovering. Buyers attempted a move above $5 on Saturday as TON rose to a day high of $4.97. However, demand evaporated, allowing sellers to take control and push the price down by 2.14% to $4.73.
Source: TradingView
Demand picked up on Sunday as TON registered an increase of almost 5% to settle at $4.95. TON surged past the resistance at $5 on Monday as it raced to a day high of $5.69, but selling at upper levels pushed it back down to $5.25. Bullish sentiment persisted on Tuesday, with TON recording a 5.65% increase, pushing above the 20-day SMA and settling at $5.55. Sellers attempted to push the price back below the 20-day SMA on Wednesday as TON fell to a day low of $5.39. However, strong lower-level demand allowed buyers to push back above the 20-day SMA and settle at $5.39. The current session sees TON marginally down as buyers and sellers struggle to establish control.
Buyers will look to keep TON above the 20-day SMA. If they are successful, it would indicate that the bears are losing momentum. However, buyers are struggling to sustain momentum at higher levels.
Cardano (ADA) Price Analysis
Cardano (ADA) has seen a jump of almost 6% over the past 24 hours as buyers overwhelmed sellers around the 20-day SMA and the $0.35 resistance. ADA has seen bullish sentiment return as it rebounds after dropping to a low of $0.30 on Friday. ADA registered a jump of 3.49% and 3.99% on Saturday and Sunday, respectively, to end the weekend positively at $0.33. ADA continued to push higher on Monday as buyers attempted to break above the 20-day SMA. However, they could not do so, as ADA registered a 1.18% increase to settle below the moving average on Monday.
Source: TradingView
What followed was an intense battle between buyers and sellers on Tuesday, as each tried to exert influence. Ultimately, ADA could only register a marginal increase to remain below the 20-day SMA, while sellers were unsuccessful in dragging ADA to its support level. Sellers made yet another attempt to push ADA below its support level, as it fell to a day low of $0.33. However, demand picked up, allowing buyers to overwhelm the resistance at the 20-day SMA and $0.35 and push above this level. The current session sees ADA up by almost 2%, having also moved above the 50-day SMA. Should ADA continue to push higher, it would indicate that sellers are losing momentum.
Ripple (XRP) Price Analysis
Ripple’s (XRP) recovery stalled at the $0.54 mark as bulls failed to push above the 200-day SMA, which is acting as a level of resistance at $0.55. After nearly slipping below $0.50 on Friday, XRP recovered over the weekend, rising by 0.77% on Saturday and 0.88% on Sunday to settle at $0.52. XRP continued to push towards $0.55 on Monday, registering a jump of almost 2% to settle at $0.53. As selling pressure increased, XRP registered only a marginal increase on Tuesday, rising to $0.54.
Source: TradingView
With the 200-day SMA and the resistance at $0.55 coming into play, buyers lost steam, and XRP fell to a low of $0.52 before posting a marginal recovery and ending Wednesday at $0.53, down by just over 1%. The current session sees XRP up by 0.52% as buyers look to make another attempt to push above $0.55. If XRP can move above the moving averages, it would indicate that bulls are attempting to drive the price beyond $0.60. However, XRP could slip back towards the $0.50 support level if sellers retake control.
Dogecoin (DOGE) Price Analysis
Despite strong selling pressure, Dogecoin (DOGE) has remained above the 20-day SMA and $0.100. DOGE struggled to reclaim the $0.100 level since dropping below it on August 27. It dipped to a low of $0.089 on Friday before buyers pushed it back above $0.090. DOGE began an impressive recovery over the weekend, registering an increase of 3.36% on Saturday and 0.94% on Sunday to settle at $0.096. DOGE surged on Monday, starting the new week with an increase of almost 8%. This allowed it to push above the 20-day SMA and $0.100 and settle at $0.103.
Source: TradingView
Buyers lost momentum on Tuesday, allowing sellers to take control. Sellers attempted to drive DOGE back below the 20-day SMA but could not do so. DOGE eventually registered a drop of 0.67%. Selling pressure intensified on Wednesday as DOGE slipped below the 20-day SMA to hit a day low of $0.098. However, traders bought the dip, allowing DOGE to push back above the 20-day SMA and settle at $0.101. The current session sees DOGE up by almost 1% and trading around the $0.102 level. If buyers can keep DOGE above the 20-day SMA, it could signal a change in sentiment. Should this occur, it could move past the 50-day SMA and the $0.105 level to $0.110.
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.
