Bitcoin (BTC) Briefly Hits $58,000 Before Retracing Below $57,000
Bitcoin (BTC) briefly touched $58,000 earlier today, but selling pressure pushed the price back below $57,000. The cryptocurrency faces resistance at higher levels, causing bulls to lose momentum. Analysts are concerned that BTC and the broader crypto market may be slipping into a bear market due to the inability to reclaim the $60,000 level and move toward the 200-day Simple Moving Average (SMA).
Recent gains have been met with skepticism as exchange inflows have shown an uptick, indicating profit-taking. Historically, Bitcoin performs poorly in September, contributing to the market’s current anxiety.
September Blues for BTC
The Bitcoin Fear and Greed Index sits at 33, signaling bearish sentiment as investors brace for dips. According to a market report by NYDIG, BTC and the broader crypto market could be in for a “seasonal slog” in September.
- Average September drop: 5.9%
- Median return: -6.0%
However, some analysts believe sentiment could improve by the end of the month, leading to three consecutive months of gains in the last quarter. Exchange inflows peaked recently, with data from CryptoQuant showing an inflow of 18,193 BTC on September 9, up from 2,535 BTC the previous day. This suggests investors may be locking in profits, anticipating a downturn.
Exchange Volumes Reflect Reduced Trading Appetite
Data from Glassnode reveals a decline in trading activity, with centralized exchange volumes contracting. This highlights reduced speculative activity and investor demand within the current price range.
“This underscores a decline in investor demand and less trading by speculators within the current price range,” Glassnode reported.
Altcoins Show Strength Amid Bitcoin Weakness
Despite BTC’s struggles, altcoins have shown resilience. Bitfinex analysts pointed out that investors may be shifting focus to altcoins as a strategy to safeguard their capital during market uncertainty.
- BTC market dominance fell by 1.3%
- Market cap of cryptocurrencies outside the top ten increased by 4.4%
Bitfinex also noted a 55% drop in open interest (OI) for altcoins from its all-time high, indicating possible exhaustion among sellers.
Can CPI Data Flip Momentum?
All eyes are on the upcoming US Consumer Price Index (CPI) data release, expected to show a decrease from 29% to 26%. Positive inflation data could bolster the Federal Reserve’s case for easing interest rates, which may influence Bitcoin’s price trajectory.
Bitcoin (BTC) Price Analysis
Bitcoin continues to face resistance at $58,000. The price has been unable to consolidate above this level, and selling pressure has thwarted multiple attempts to push towards $60,000.
- Resistance: $58,000
- Support: $52,000
Sellers are attempting to drive BTC below $55,000, but buyers are expected to defend this level. A break below could lead to a drop to $52,000, while a push above $58,000 might lead to a move towards $60,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is struggling to reclaim the $2,400 level. The price has been trading below the 20-day SMA, with selling pressure intensifying near resistance levels.
- Resistance: $2,400
- Support: $2,300
If ETH breaks below $2,300, the next support lies at $2,100. A push above $2,400 could open the door for a move towards $2,500.
Solana (SOL) Price Analysis
Solana (SOL) failed to break past the $140 level as selling pressure increased. Buyers attempted to push the price above $135 but lost momentum, leading to a retrace.
- Resistance: $140
- Support: $130
If SOL drops below $130, it could dip further to $120. However, a recovery above $135 could see another attempt to break $140.
Polkadot (DOT) Price Analysis
Polkadot (DOT) continues to face selling pressure after stalling at the 20-day SMA. Despite attempts to recover, DOT has struggled to reclaim higher levels.
- Resistance: $4.50
- Support: $4.00
Buyers need to defend the $4.00 level to prevent further downside, with the next resistance target at $4.50.
Optimism (OP) Price Analysis
Optimism (OP) has surged nearly 17% over the past week, breaking through key resistance levels and moving above $1.60. However, sellers are attempting to push the price back below the 20 and 50-day SMAs.
- Resistance: $1.60
- Support: $1.40
If buyers can defend the $1.60 level, OP may continue its upward trend.
Bittensor (TAO) Price Analysis
Bittensor (TAO) saw a strong recovery, reclaiming the $250 level. However, selling pressure at $280 has stalled its advance.
- Resistance: $280
- Support: $250
A push above $280 could see TAO targeting $300, but further downside could lead to a retest of the $250 support level.
Uniswap (UNI) Price Analysis
Uniswap (UNI) has been on an upward trend since bouncing off support. The price is currently facing resistance at $6.75.
- Resistance: $7.00
- Support: $6.50
A move above $7.00 could open the door for further gains, while a drop below $6.50 could see the price retest lower levels.
Fetch.AI (FET) Price Analysis
Fetch.AI (FET) has shown strong performance, rising above $1.30. However, selling pressure at $1.35 has caused a minor retrace.
- Resistance: $1.35
- Support: $1.20
If FET breaks above $1.35, it could target higher levels. A drop below $1.30 could see it test the $1.20 support level.
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