The crypto markets slipped into extreme fear over the weekend, with major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and several others losing considerable ground and dragging the combined crypto market cap below $2 trillion.
BTC tumbled to a low of $52,714 over the weekend, while ETH got dangerously close to slipping below the $2,200 level on Sunday. SOL also dropped to a low of $126 as markets turned bearish after US job market data missed expectations, with some cryptocurrencies, such as BTC and ETH, dipping below key levels. The markets closed last week with uncertainty reigning among market watchers, with the upcoming FOMC meeting further impacting investor sentiment. Other events impacting the markets are the Telegram saga and the Ripple lawsuit, which continues to fuel speculations.
US Jobs Data Misses The Mark
The US and crypto markets turned red after weaker-than-expected US job numbers, pointing to a slowing economy. According to analysts, the lackluster jobs growth played into the narrative of an economic slowdown while also noting September had been a historically tepid period for crypto and equities. Analysts have also predicted a turbulent week for crypto markets after the job market data sparked unexpected volatility. Job market numbers came in at 7.7 million, a 4.6% drop from the expected 8.1 million. As a result, market watchers are now expecting a 50 basis point rate cut by the Federal Reserve. The broader impact of the rate cut and the job market data remains uncertain because September is historically a bad month for stocks and crypto.
As a result of the job market data, BTC dropped below $53,000 before rebounding, dragging the rest of the crypto market down with it. Leena ElDeeb, a research analyst at 21Shares, stated,
"The recent US labor market results acted as a moment of truth for risk-on assets like bitcoin, as the labor market is considered the main sector that may influence the Fed's decision to cut rates this month. With a slightly improving unemployment rate, investors traded positively, pricing in a looser monetary policy on September 18. A rate cut bodes well for risk-on assets, which have historically enjoyed the expansion of the investor appetite as borrowing costs decrease. If a hard economic landing is avoided, bitcoin and the broader market may see appreciation in the fourth quarter, driven by these liquidity dynamics."
Crypto Markets Lacking Near-Term Catalysts
JPMorgan noted in a research report on Friday that the crypto market had reported a 24% decline from its March peak, adding that it was waiting for the next catalyst to drive development, retain engagement, and trigger a price recovery.
“Overall, we continue to see the crypto ecosystem lacking major catalysts, and we thus expect crypto token and asset prices to be incrementally more sensitive to macro factors.”
According to JPMorgan, despite the market decline, trading volumes registered an uptick in August, with the total average daily volumes (ADV) rising around 8%. One Bitcoin analyst had predicted the “biggest bull cycle,” with $45,000 now acting as the new price floor. The analyst stated that BTC is going through some final corrections and could spend the next two years on a bull run. The analyst pinpointed the $53,000 price level as the asset’s next price dip target, despite few analysts willing to go on record and call the end of BTC’s price consolidation. However, entrepreneur, analyst, and trader Michael van de Poppe has stated that BTC’s recent price correction has nearly run its course.
“Liquidity was taken & #Bitcoin is back up to $54.8K. Expect a max of $55.5K on this run and then we could be revisiting $53K before clearly breaking back upwards. Final corrections & then 2 years bull.”
Investors are still not convinced new lower lows will not surface, even a month after BTC slipped below $50,000. This is why markets have remained subdued despite favorable macroeconomic conditions just around the corner.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) suffered a major downturn on Friday, slipping below $55,000. Sellers dragged the price to a day low of $52,622 before it made a marginal recovery to push back above $54,000 and close at $54,205. Several events lined up for the week could significantly impact the price of BTC. This comes after the world's largest cryptocurrency shed over 5% during the past week. Analysts have noted that investor confidence is low, but upcoming events could act as a catalyst and trigger a recovery. Meanwhile, spot Bitcoin ETFs continue to see red and witnessed considerable outflows.
Bitcoin ETFs saw outflows of $170 million on September 6, pushing the cumulative weekly outflow above $700 million to $706 million. According to the available data, spot Bitcoin ETFs have been in the red for 8 consecutive days, with none of the 12 ETFs reporting net inflows over the past week. Fidelity’s FBTC ETF reported outflows of over $85 million on September 6, forcing it to post a weekly outflow of just over $404 million. Meanwhile, Grayscale’s GBTC saw a withdrawal of $52,87 million on September 6 and posted a weekly outflow of $160 million.
Now, let’s look at the BTC price. According to 10x Research, BTC could drop as low as $45,000 and pointed out that active addresses have dropped to 612,000, and the Mayer Multiple dropping below 1 it suggested a further decline. The company stated,
“Bitcoin addresses peaked in November 2023 and sharply declined after the first quarter of 2024. When the amount of BTC held by short-term holders began to decline in April, long-term holders took advantage of high prices to exit, suggesting a cycle top had been reached.”
BTC declined all of last week after failing to move past the 20-day SMA on Tuesday, dropping to $57,529 as a result. Sellers attempted to drive the price below $55,000 on Wednesday as it fell to a day low of $55,658. However, buyers could counter the selling pressure and push BTC up by 0.85% to $58,017. Selling pressure intensified on Thursday and Friday as BTC dropped by 3.15% and 3.53%, respectively, to settle at $54,205, losing the crucial $55,000 price level. In fact, sellers dragged BTC to a low of $52,622 on Friday before it rebounded to settle above $54,000.
Source: TradingView
The weekend saw buyers attempting a recovery as BTC registered a marginal increase on Saturday and a 1.25% increase on Sunday to settle at $54,981. The current session sees BTC marginally up and trading above the $55,000 price level. The $50,000 price level is crucial for BTC at this point. If buyers reclaim this level, it would indicate that bulls are buying a dip, and a rebound towards $57,000-$58,000 could be on the cards. However, a drop below this level could see the $50,000 support level being tested.
Ethereum (ETH) Price Analysis
Ethereum (ETH) dipped below $2,300 on Friday as sellers dragged it to a low of $2,150, with market watchers worried the price could collapse below $2,100. ETH has continued its struggles, with spot Ethereum ETFs also in the red. ETH ETFs registered net outflows of over $91 million last week, the fourth consecutive week in the red. Grayscale’s ETHE reported outflows of $10.70 million, adding to the cumulative negative flow of $2.67 billion. BlackRock’s ETHA was the only Ethereum ETF that posted an inflow of $4.72 million on the last trading day.
ETH dipped below $2,500 on Tuesday as bulls failed to mount a sustained push to move above the 20-day SMA. Sellers attempted to drag the price below $2,300 on Wednesday as it fell to a low of $2,310. However, thanks to strong demand at this level, ETH recovered, ultimately registering an increase of 1.07% to settle at $2,451. A move above $2,500 failed to materialize as ETH fell back in the red on Thursday, dropping over 3% to $2,369. Bearish sentiment intensified on Friday as ETH lost the $2,300 support level, falling to a low of $2,150. ETH eventually ended Friday at $2,226, down 6.05%.
Source: TradingView
Buyers entered the market over the weekend as sellers lost steam at lower levels. As a result, ETH registered a 2.21% increase on Saturday and a 1% increase on Sunday to end the weekend at $2,298, on the verge of reclaiming the $2,300 level. The current session sees ETH up 1.02% and trading at $2,323, having reclaimed the $2,300 level. If buyers can keep ETH above $2,300, it would indicate a waning bearish sentiment. As such, a move towards $2,500 could materialize. However, should sellers retake control and push ETH back below $2,300, we could expect a drop to $2,100. This level has substantial demand and should prevent a further drop until ETH’s next move is determined.
Solana (SOL) Price Analysis
Is Solana (SOL) gearing up for a potential rally? Yes, as some analysts and indicators suggest. SOL is down almost $17% over the past month, having slipped below $130, but despite a bearish market, SOL is displaying some promising signs. SOL has been highly bearish since being rejected from $160, slipping below moving averages and key support levels as sellers drove its price lower. By the beginning of September it fell below $130, where buyers appeared and attempted to stabilize the price. Despite this, the altcoin is showing signs it could be on the verge of an exceptional surge.
SOL experienced significant volatility last week, as buyers plotted a move above $135 while sellers attempted to drag it below $120. SOL dropped to a low of $122 on Wednesday, but thanks to strong lower-level demand, buyers could reverse the negative sentiment and push SOL to $133 after an increase of 4.74%. However, it could not push further and fell into the red on Thursday, dropping over 3% to $129. Buyers attempted another move above $135 on Friday as SOL rose to a day high of $134 before losing steam. As a result, SOL dropped to a day low of $120. However, lower-level demand prevented a further drop, eventually settling at $125 after a 3.38% drop.
Source: TradingView
The weekend saw SOL back in the green as it posted a 2.16% increase on Saturday and a 1.84% increase on Sunday to settle at $130. The current session sees the price marginally down as buyers and sellers look to establish control. SOL’s RSI has revealed a bullish divergence, with the price forming lower lows and the RSI forming higher lows. This may signal that momentum is shifting from a downtrend to an uptrend. Data from CoinGlass has shown SOL’s long/short ratio at 1.103, indicating traders are optimistic. For now, buyers must reclaim $130 and push towards the resistance at $135. Should SOL climb above these levels, we could see a move to $150. On the other hand, sellers will look to keep the price below $130 and drag it to $120, a level that buyers are expected to defend strongly.
Toncoin (TON) Price Analysis
Toncoin (TON) has recovered of sorts despite the Telegram fiasco and has recovered the $5 price level. TON had been extremely bearish last weekend, as sellers drove it below a key support level when it dropped to $4.92 on Tuesday. It continued to drop on Wednesday, falling to $4.73 before buyers attempted a recovery on Thursday. On Thursday, TON dropped to a low of $4.55 before recovering and reaching a day high of $4.05. However, buyers could not sustain momentum, and TON dropped to $4.81, eventually registering an increase of 1.60%. Friday saw significant volatility as buyers and sellers attempted to exert influence. Buyers attempted to push above the resistance at $5, while sellers attempted to drag TON below $4.50. Ultimately, both were unsuccessful, as TON only registered a marginal increase.
Source: TradingView
TON fell 2.14% on Saturday, starting the weekend on a negative note. However, it made a strong recovery on Sunday, rising almost 5% and settling at $4.95. The current session sees TON up almost 2% and trading at $5.05. If buyers can keep TON above $5, it would indicate that sellers are losing grip. This could also see a move to $5.50 materialize. However, should sellers re-establish control, TON could drop back below $5 to the $4.50 support level.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has rebounded admirably over the weekend after hitting a day low of $3.82 on Friday. DOT had spent most of the previous week in the red as selling pressure continued to push the price lower. DOT hit a low of $3.87 on Wednesday but rebounded thanks to strong lower-level demand, eventually rising by 1.23% to $4.11. However, DOT fell back in the red on Thursday, dropping 2.19% to $4.02. Sellers again breached the $4 level on Friday, dragging the price to a day low of $3.82 before they were countered by buyers who propped it up to $3.96. However, DOT could not reclaim $4, at least not on Friday.
Source: TradingView
With DOT close to its support levels, buyers entered the market on Saturday as it rebounded. As a result, DOT registered an increase of 3.28% to reclaim $4 and settle at $4.09. Buyers remained in control on Sunday as DOT ended the weekend with a 1.96% increase to settle at $4.17. The current session sees DOT up by 0.48%, trading at $4.19. It is evident DOT has strong support at $ and $3.62, levels that sellers will have a tough time breaching. However, buyers must build on DOT’s rebound and push above the 20-day SMA. A move above this moving average would indicate waning bearish pressure and a potential retest of $4.50 and $5. The MACD has also flipped to bullish, indicating that buyers have the advantage for now.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) remains locked between $1.40 and $1.80, with the price failing to stay above the 20-day SMA after pushing above it on Wednesday with an increase of almost 10%. Buyers could not consolidate above the 20-day SMA as WIF fell back in the red on Thursday, dropping nearly 7% to slip back below the 20-day SMA and settle at $4.13. The price continued to drop on Friday, falling below $1.50 after a drop of almost 3%. Buyers attempted to counter the selling pressure on Saturday but could not, as WIF registered a marginal decline and settled at $1.48.
Source: TradingView
WIF pushed back above $1.50 on Sunday, registering an increase of almost 6% and rising to $1.57. However, sellers again thwarted a move above the 20-day SMA, with WIF back in the red during the current session. For sentiment to change, WIF must push above the 20-day SMA. A move above this level could see WIF push towards the $1.80 price level.
Celestia (TIA) Price Analysis
Celestia (TIA) has pushed back above $4 after dropping below it on Friday. TIA has primarily been in the red since August 25, slipping below the 20 and 50-day SMAs and the $5 price level. By September 1, TIA had dropped to $4.23, close to the $4 support level. On Tuesday, sellers attempted to drive the price below this level as it fell to $4.06. However, buyers countered the selling pressure on Wednesday as TIA registered a 2.23% increase and settled at $4.15. TIA could not sustain momentum and fell back in the red on Thursday, registering a drop of 2.53% and settling at $4.04.
Source: TradingView
The price fell below $4 on Friday after a drop of 3.22%, driving TIA to $3.91. Sellers attempted to drag the price lower but were thwarted by buyers. TIA recovered over the weekend, registering a marginal increase on Saturday and climbing to $3.94. It reclaimed the $4 level on Sunday after a 2.98% increase, which pushed the price to $4.05. The current session sees TIA up by 2.17% and trading at $4.14 as buyers consolidate above $4. Should buyers continue to control the session, TIA could test the resistance at $4.50. However, should sentiment change, sellers will attempt to drive TIA back below $4.
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.
