Bitcoin (BTC) has held firm above $60,000, although its price has not seen much movement. The asset is trading around the $60,700 price level. The crypto market cap currently stands at $2.15 trillion, an increase of 0.72% over the past 24 hours.
While BTC has gained around 21% since dipping below $50,000 on August 5, it has struggled to stay above $60,000. BTC’s sluggishness could be blamed on investors looking to balance risk, who have pivoted to bonds and stocks as Bitcoin futures registered a dip.
Bitcoin (BTC) Still Sluggish
Bitcoin is facing several conflicting trends, resulting in low investor interest. Macroeconomic indicators suggest traders are moving towards safer investments, such as stocks, and shifting away from cash positions for the moment. The stock market gains have coincided with a decline in US Treasury yields, indicating strong demand for traditionally safe assets. Investors are willing to settle for lower returns on fixed-income assets. However, Bitcoin derivatives metrics are displaying resilience and an upside potential.
Is A Parabolic Rally On The Cards?
2024 has been mixed for Bitcoin (BTC), with several crucial events taking place. These include the launch of spot Bitcoin ETFs and the halving event. Unlike previous halving events, this time, BTC hit a new all-time high before the halving event. Almost four months after the halving, BTC has yet to hit its pre-halving all-time high. On the contrary, BTC has lost 13% over the past month. This has brought Q4 into focus, with analysts wondering if BTC could see a rally in this quarter.
Coinglass data shows that BTC has always had positive returns in Q4 during halving years. The cryptocurrency recorded gains of 58% in 2016 and 168% in 2020. BTC also posted positive returns in 8 out of 11 years between 2013 and 2023, with average gains of 88%. If we look at historical data, there is a 73% chance of a BTC rally in Q4 2024. Ki Young Ju, the founder and CEO of CryptoQuant, stated that BTC’s 2020 rally began in Q4 2024, and BTC’s current phase suggests it could be setting up for a parabolic rally in Q4.
“In the last Bitcoin halving cycle, the bull rally began in Q4. Whales won’t let Q4 be boring with a flat YoY performance.”
ETH Sentiment Still Bearish
ETH’s price trend has remained bearish despite a drop in gas fees. The world’s second-largest cryptocurrency has struggled to stay above $2,600 but has registered an increase of $1.75 in the past 24 hours. Gas fees on Ethereum fell under 1 gwei, their lowest level in five years. The drop in gas fees can be attributed to a sluggish market, recent network updates, and a significant increase in Layer2 adoption.
While a reduction in gas fees can be considered a good thing, it raises concerns due to a decrease in token burning and an increase in the supply of ETH.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has managed to stay above the $60,000 mark despite strong resistance around the $62,000 price and sluggish demand as Bitcoin whales adopt a wait-and-watch stance. The current week has been mixed for BTC as it notched up notable price jumps and substantial declines. After ending the previous week on a bearish note with a 1.90% drop on Sunday, BTC started the current week by almost erasing Sunday’s losses. The cryptocurrency rose by 1.73% and settled at $59,501. Buyers attempted to overwhelm sellers on Tuesday and push towards $60,000, meeting initial success as BTC rose to an intra-day high of $61,401. However, intense selling pressure at higher levels allowed the bears to retake control and push BTC back below $60,000 and the 20-day SMA. BTC eventually ended Tuesday at $59,068 after a drop of 0.73%.
Source: TradingView
BTC was back in the green on Wednesday as markets rallied following the release of the FOMC meeting minutes. Thanks to the overall positive sentiment, BTC was able to climb back above the 20-day SMA and $60,000 to settle at $61,134. With the 50-day SMA and its associated resistance coming into play on Thursday, buyers lost momentum as BTC dipped by 1.16% to settle at $60,423. Crucially, however, buyers were able to keep BTC above $60,000. The current session sees BTC up by 1.32% as it makes another attempt to push past the 50-day SMA.
BTC faces strong resistance at the 50-day SMA, a level buyers must overcome to push towards $65,000 and beyond. The next level of resistance buyers must overcome is the 200-day SMA. A break above these levels could indicate the return of bullish sentiment and set BTC up for a push above $65,000. However, for this to happen, BTC needs a significant uptick in demand, which is currently lacking, given that crypto whales have reduced buying. Sellers, on their part, will look to drive BTC back below $60,000 and towards the $58,000 support.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has broken past the 20-day SMA in what can be seen as a positive development after weeks of sluggishness. ETH buyers had repeatedly failed to push the price above the 20-day SMA but finally found the required momentum this week. As you can see from the price chart, ETH has been quite subdued since a 3.50% drop on August 15, with the price mainly trading sideways since. The current week began with an increase of 1% as buyers strived to keep ETH above $2,600. ETH eventually settled at $2,639. However, sellers took control on Tuesday and drove ETH below $2,600 as it settled at $2,574 after a drop of 2.44%.
Source: TradingView
The crypto markets saw a positive Wednesday, and ETH registered a 2.21% increase to push back above $2,600 and settle at $2,631. Sellers attempted to drive ETH back below $2,600 on Thursday but could not, with demand picking up at lower levels. As a result, ETH only dropped marginally and, crucially, settled above the 20-day SMA. The current session sees ETH up by 1.95% as buyers look to push ETH above $2,700.
With bears failing to push ETH below $2,600, bulls will look to regain momentum and push the price toward $2,850, a crucial level of resistance. However, sellers are expected to defend both levels vigorously and look to regain control and push ETH down toward its $2,500 support level.
Solana (SOL) Price Analysis
Solana (SOL) is attempting to break out of its recent horizontal market trend, which has seen it make modest gains compared to its recent price action. The cryptocurrency has been struggling to push above $150 and trading below the moving averages but has registered an uptick during the ongoing session as it works its way above the 20-day SMA. SOL has been on a steady upward trajectory since the weekend, but bulls have been unable to sustain momentum, losing steam close to the $150 price level, as can be seen on the price chart.
Source: TradingView
SOL reached an intra-day high of $147 on Sunday before sellers forced the price down to $142. The current week began with a 1.35% increase, allowing SOL to move to $144. Buyers attempted a move past the 20-day SMA on Tuesday as SOL reached an intra-day high of $148.91. However, buyers lost momentum, allowing sellers to retake control and push SOL back below the 20-day SMA. SOL eventually settled at $142 after a drop of 1.42%. SOL saw considerable volatility on Wednesday and Thursday as sellers attempted to drive the price below the $140 support level while buyers attempted to push above the 20-day SMA. However, neither could establish control, and SOL eventually settled at $143, registering only a marginal increase.
The current session sees SOL attempting a move above the 20-day SMA, with the price currently at $145. So, is SOL finally going to reclaim $150? Data from LookOnChain suggests activity in Solana markets is picking up. Should bulls gain momentum, SOL will test the resistance above $150. However, buyers must keep SOL above the 20-day SMA for such a scenario to play out. Sellers are expected to defend resistance levels vigorously, and if SOL is rejected from these levels, it would indicate that bears are in charge. If buyers can maintain control and move above the moving averages, SOL could attempt a move to $160.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) broke above the 20-day SMA this week as buyers finally gathered momentum and broke out of the meme coin’s recent narrow trading range. Buyers had ensured DOGE stayed above $0.100 but could not push it beyond $0.102 thanks to the 20-day SMA acting as a dynamic resistance level. A similar script played out over the weekend, with DOGE ending the previous week at $0.100. Buyers were able to push DOGE up by 1.60% to $101 on Monday and attempted a move above the 20-day SMA on Tuesday. Despite reaching a day high of $0.106, sellers took control and pushed DOGE back below the 20-day SMA. Despite the selling pressure, DOGE registered an increase of 1.47% and settled at $0.103.
Source: TradingView
DOGE finally broke past the 20-day SMA on Wednesday after a 2.81% increase propelled it to $0.106. Buyers attempted to retake control on Thursday and drive DOGE back below the moving average. However, with demand picking up at lower levels, DOGE registered only a marginal decline. The current session sees the price up by 1.13% and trading at $0.107, as buyers look to move towards $0.110.
Cardano (ADA) Price Analysis
Cardano (ADA) has surged this week, breaking past the 20-day SMA and the $0.35 resistance level, indicating that bulls currently have complete control. The current surge puts ADA on the verge of the $0.40 price level, with buyers having pushed ADA above the 50-day SMA as well. ADA started the current week with a marginal increase of 0.60% on Monday. Buyers gained further momentum on Tuesday as ADA rose above the 20-day SMA after a 2.08% increase to settle at $0.34.
Source: TradingView
ADA registered a surge of 7.56% on Wednesday as crypto markets saw an uptick. This allowed ADA to push above $0.35 and settle at $0.37. Buyers also attempted a move above the 50-day SMA but were thwarted, as seen in the price chart. Despite the 50-day SMA acting as a dynamic resistance level, ADA registered a 1.89% increase on Thursday to settle just below the moving average. The current session sees ADA up by over 2%, having moved above the 50-day SMA and trading at $0.38. If ADA continues its upward trajectory, it could reclaim the $0.40 price level.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has continued its upward trajectory as it nears the crucial $5 level. After its recent price struggles had shaken investor confidence, reclaiming this level will be crucial for DOT. However, analysts had always backed the asset and its potential, stating it was massively undervalued. DOT has been in the green since last Friday, steadily climbing as it sheds its recent bearish sentiment with buyers taking control. By Sunday, DOT had risen to $4.39, with buyers attempting to push above $$4.50. DOT remained positive on Monday, registering an increase of 2.05% to settle at $4.48. On Tuesday, it reclaimed the $4.50 price level after a 0.89% increase pushed it to $4.52.
Source: TradingView
DOT broke above the 20-day SMA on Wednesday after a 3.32% increase and settled at $4.67, and a marginal increase on Thursday pushed DOT to $4.69. The current session has seen buyers continue to push DOT towards $5. DOT is currently up by 1.92% and trading at $4.78. After enduring a downward trajectory that began in March, DOT’s recent upward trajectory could mark the end of sustained bearish sentiment that has plagued the altcoin. Buyers will now look to reclaim the crucial $5 level, which DOT lost at the beginning of August.
Dogwifhat (WIF) Price Analysis
Unlike DOGE, Dogwifhat (WIF) has steadily increased this week, pushing it above crucial resistance levels as buyers look to build on recent bullish momentum. WIF bounced off the $1.40 support level on Monday, rising to $1.43 after a 3.24% increase. The popular meme coin continued its upward trajectory on Tuesday, surging by 8.13% to push above $1.50 and settle at $1.55. Sellers attempted to retake control at this level and drove WIF to a low of $1.47, but with lower-level demand picking up, WIF was quick to recover. Despite the selling pressure, WIF managed to register a marginal increase, although it could not push above the 20-day SMA.
Source: TradingView
WIF overcame the 20-day SMA on Thursday, posting an increase of 3.69% and settling at $1.61. The current session sees WIF up by 1% and trading at $1.63. Buyers must ensure WIF stays above the 20-day SMA for its current rally to continue. Should the price continue increasing, WIF will test the resistance at the 50-day SMA. Sellers will look to regain control and drive the price back below the 20-day SMA and the $1.50 level.
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.
