The cryptocurrency market mirrored the stock market’s downturn on Thursday as traders braced for Friday’s highly anticipated jobs report. As a result, almost all major US stock indices slipped into the red. Bitcoin (BTC) dropped nearly 4% over the past 24 hours, while gold registered a 1% increase to push back above the $2,500 mark.
Almost all cryptocurrencies remain firmly in the red as bears continue to dominate the market. BTC is currently down by 1.39%, while ETH has struggled, slipping below $2,400, down just under 1.50% over the past 24 hours. Other cryptocurrencies in the red include Solana (SOL), down by 2.45%; Dogecoin (DOGE), down by 1.55%; and Shiba Inu (SHIB), down by almost 1%.
Markets Brace For Job Report
With concerns about a US recession continuing, Bitcoin (BTC), Ethereum (ETH), Dow Jones, Nasdaq, and the NYSE were all in the red as investors waited for Friday’s jobs report which would give an idea of the overall economic situation. However, despite the market slump and growing concerns, some investors hope for a soft landing for the economy. Emmanuel Cau, the head of European equity strategy at Barclays, stated,
“While incoming data is mixed, it is not collapsing, and the global cutting cycle should help the economy achieve a soft landing, extending the cycle into 2025. We see this as a broadly positive environment for equities, but a lot is arguably priced in, and there are a number of wildcards to get through.”
As a result of the unease, BTC dropped by around 3% on Thursday, while the overall crypto market registered a drop of 1.53%, taking its overall market cap below the $2 trillion mark. ETH also registered a sharp drop on Thursday as it continued to struggle and dipped below the $2,400 mark.
Is ETH Underperforming Or Undervalued?
Ethereum (ETH) has continued underperforming key assets within and outside the crypto ecosystem. This includes assets such as Bitcoin, Solana, Meta, Nvidia, Apple, Gold, and others. According to data from Ecoinometrics, ETH has been the worst-performing asset among large capitalization assets. On the other hand, Nvidia, Meta, Bitcoin, Apple, Gold, Google, Amazon, Nasdaq, and Microsoft have seen gains of 142%, 48%, 38%, 22%, 19%, 18%, 18% and 12%, respectively. ETH has posted returns of only 9%
“The fall outlook isn’t great, but there is more downside risk: Small rate cuts probably won’t boost market liquidity much. US economic uncertainty may weaken the broader market. Now is a time for caution rather than bold moves.”
CryptoQuant analysts have stated that some reasons for ETH’s underperformance include lower transaction numbers on the Ethereum mainnet, which has led to a decline in transaction fees. ETH’s total supply has also increased, and the asset may not hold its deflationary status again. This has been attributed to Ethereum’s Dencun upgrade, which introduced new architectural dynamics.
One analyst has argued that ETH has a slight chance of hitting a new all-time high at the end of 2024, even as it struggles to keep up with other major tech stocks. Despite this, some believe a price jump is around the corner.
“Right now, Ethereum is struggling with a lack of a strong narrative to drive its price, especially compared to other assets.”
Spot Ethereum ETFs have also not turned out to be as lucrative as expected. While it drew considerable attention from Wall Street, it also ended up in direct competition, with highly lucrative tech stocks delivering significantly better returns.
Michael Saylor Makes Bold Statement
MicroStrategy head Michael Saylor has made a bold statement regarding BTC, urging traders and investors to catch the Bitcoin wave. The statement comes when BTC and the larger crypto market are witnessing lackluster price movement. BTC has stagnated over the past six months, with investors largely apathetic towards the asset. The last three months have seen downward pressure on the asset intensify, leading to one of BTC’s steepest drops in recent times.
MicroStrategy, under Saylor, has continued its aggressive acquisition of BTC. As of July, the company held over 226,500 BTC, making it one of the largest corporate holders of the asset.
India’s FIU Considering Approving More Offshore Exchanges
The WazirX fiasco has rocked India’s crypto ecosystem. However, in news that could bring cheer to the Indian crypto community, India’s Financial Intelligence Unit is reportedly considering four offshore exchanges for potential approval to resume operations in the country. This comes after the FIU lifted the ban on Binance and KuCoin. A source stated,
“We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by the end of FY25. This would be after undergoing a thorough review of transaction visibility, suspicious transaction reporting (STR), and other related issues.”
According to officials, India’s FIU is focused on ensuring compliance with anti-money laundering regulations before it grants approvals to more exchanges.
“Only after complete due diligence will we allow any crypto exchange to operate in India. We are very strict about compliance.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) price correction has been going on for the past six months, with the world’s largest cryptocurrency down over 7% during the past week. Over six months, the asset has declined by around 23%. While this is not too big a decline if we look at BTC’s price history, analysts are worried and growing increasingly bearish as the downtrend lingers on. Some analysts are hoping September is the local bottom for the asset, adding that if it isn’t, things could be bleak for the next few months. CryptoQuant head of research Julio Moreno stated that BTC was down simply because there was no demand growth.
“All valuation metrics are in bearish territory,” he said before adding that seasonality is usually positive in the fourth quarter, “but it also depends on the overall economic and Bitcoin market conditions.”
Additionally, whale activity in BTC and other major cryptocurrencies has registered a significant decline, indicating that the market is highly cautious. However, some whales are accumulating, hinting that this is not an outright bearish trend. Looking at the Bitcoin price chart, we can see that BTC has declined over the week and remains in the red in the current session as well. BTC started the week on a positive note, rising over 3% on Monday and settling at $59,169. It attempted to move past $60,000 and the 20-day SMA on Tuesday but could not do so. As a result, sellers overwhelmed buyers and pushed BTC down by 2.77% to $57,529.
Source: TradingView
BTC dropped to a day low of $55,658 on Wednesday as the bears attempted to drive it below $55,000. However, thanks to strong lower-level demand, BTC recovered, reversing the selling pressure to register an increase of 0.85% to settle at $58,017. Once again, buyers could not sustain momentum, and BTC fell back in the red on Thursday, dropping over 3% to $56,190. The current session sees BTC down by 1.45%, trading around the $55,400 mark. BTC has support around the $55,000 mark. Should this level be breached, it could open the doors for a drop to $50,000. Buyers are expected to defend both levels, and should the price rebound, we could see a recovery toward the 20-day SMA.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has been down just over 3% in the past 24 hours, dipping below the $2,400 price level, and the sentiment around the asset remains bearish. ETH’s continuous decline could pressure the $2,300 support level as sellers look to drag the price even lower. Investors are concerned ETH may underperform even if the bull market resumes. While most have attributed ETH’s lackluster performance to ongoing market conditions, there are a number of other factors, such as weak demand, low network fees, unappealing staking rewards, and a lack of interest in spot Ethereum ETFs.
Source: TradingView
ETH has continued its downward trajectory this week, bringing the $2,300 support level into focus. The week started on a positive note, with an increase of 4.55%, pushing ETH above $2,500 to $2,539. However, the price was rejected at this level and fell back in the red on Tuesday, dropping by 4.49% to $2,425. Sellers attempted to drag ETH below $2,300 on Wednesday as it fell to a low of $2,310. However, with buyers actively defending this level, ETH recovered and registered an increase of 1.07% to settle at $2,451. Buyers lost momentum once again as selling pressure returned, with ETH falling by 3.34% on Thursday to $2,369. The current session sees ETH remain in the red as sellers look to breach $2,300 and buyers struggle to counter the selling pressure.
If sellers can breach the $2,300 level, ETH could drop as low as $2,100 and indicate that bears have tightened their grip on the market. However, if ETH can rebound from its support levels, buyers will aim to reclaim $2,500. A close above this level could indicate that sellers are losing momentum, at least at lower levels.
Solana (SOL) Price Analysis
Solana (SOL) is struggling to reclaim $135 as its price oscillates between $120 and $135. The current week has also seen the price experience significant volatility, with investors buying the dip and selling on rallies, allowing neither buyers nor sellers to exert influence. SOL turned bearish after being rejected at $160, with buyers only able to halt its decline on September 1 after it fell to $128. The current week began with an increase of almost 5%, pushing SOL to $135. Buyers attempted a move above this level on Tuesday but were thwarted. As a result, SOL fell back in the red, dropping by 5.47% to slip below $130 and settle at $127.
Source: TradingView
SOL dropped to a day low of $122 on Wednesday, but strong lower-level demand enabled a quick rebound, which saw SOL register an increase of almost 5% to move to $133. Once again, it could not move above $135 and fell back in the red on Thursday, dropping by 3.16% to $129. The current session sees SOL down marginally and trading around the $128 mark. SOL must reclaim the $130 and $135 levels if a move towards $150 is to materialize. However, with sellers in control, the bulls must first defend the $120 price level and prevent a further decline in the SOL price.
Toncoin (TON) Price Analysis
Toncoin (TON) has been in freefall since news of the arrest of Telegram founder Pavel Durov broke. This week saw TON flip a key support level as the 200-day SMA and 20-day SMA completed a death cross on Wednesday, indicating increased bearish pressure. The asset’s price slipped below $5, and its market cap also registered a substantial decline. All signs point to TON continuing to decline in the short term, including a bearish MACD and an RSI below 50.
Source: TradingView
TON registered a marginal increase on Monday, hoping to rebound from the $5 support level. However, it fell significantly on Tuesday, slipping below $5 and settling at $4.92. The price continued to decline on Wednesday, hitting a low of $4.51 before making a marginal recovery and settling at $4.73. Buyers attempted to reclaim $5 on Thursday as TON climbed to a day high of $5.05. However, bulls lost momentum above $5, allowing sellers to drag the price down to $4.81. The current session sees TON up by $1.18%, with buyers looking to make another attempt at reclaiming $5.
Tron (TRX) Price Analysis
Tron (TRX) has significantly declined this week after failing to push above the resistance at $0.160. As a result, it turned bearish, dropping to $0.156 on Sunday. The decline continued on Monday as the price fell by just over 1% to $0.154. A 2.41% decline on Tuesday saw TRX dip below the 20-day SMA and settle at $0.150. Buyers attempted a recovery on Wednesday but could not do so as sellers pushed TRX down below $0.150 to $0.149. A marginal recovery on Thursday saw TRX regain the $0.150 level, but it is back in the red during the current session as sellers look to drag the price toward $0.140. If TRX cannot push back above $0.150, we could see bears tighten their grip and drive it lower. Sentiment around the asset is already bearish, as indicated by the MACD.
Source: TradingView
Shiba Inu (SHIB) Price Analysis
Shiba Inu (SHIB) slipped below the 20-day SMA over the weekend and is struggling to stay above $0.0000130. SHIB is facing strong resistance at $0.0000140, resulting in its price oscillating between these levels throughout the week. SHIB started the week on a positive note after a sharp decline on Sunday, rising by almost 4% and settling at $0.0000136. Thanks to strong selling pressure close to the 20-day SMA, SHIB fell back in the red on Tuesday after a failed attempt to push above the moving average, falling by 4.32% to $0.0000130.
Source: TradingView
Sellers attempted to drive SHIB below $0.0000130 on Wednesday as it fell to a day low of $0.0000124. However, buyers countered the selling pressure thanks to strong lower-level demand, allowing SHIB to recover and register an increase of almost 4% to settle at $0.0000136. Buyers lost steam again on Thursday as SHIB fell just over 3% to $0.0000131. The current session sees SHIB marginally down as sellers look to push it below $0.0000130.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has slipped below the crucial $4 level as bearish sentiment around the asset intensifies. DOT had managed to stay above this level, with market watchers hoping for a recovery that would allow it to reclaim the $4.50 level. However, DOT’s latest slip could lead to a drop-down to $3.62. Should this occur, it would be the second time DOT falls to its multi-year support after August 5.
DOT attempted to consolidate this week, starting Monday with a 3.44% increase that saw the price move to $4.21. Buyers attempted to build on Monday’s momentum as DOT rose to a day high of $4.28. However, they were unsuccessful as sellers took control on Tuesday, dragging the price down by 3.33% to $4.07. Sellers attempted to push DOT below $4 on Wednesday as it fell to a day low of $3.88. Despite their efforts, buyers could counter the selling pressure thanks to solid demand at lower levels. As a result, DOT made a quick recovery and registered a 0.98% increase to push back above $4 and settle at $4.11. The price saw another drop on Thursday as buyers lost momentum, dropping by 2.19% to $4.02.
Source: TradingView
The current session sees DOT down by almost 1%, slipping below $4. However, sellers will have a tough time pushing DOT lower, thanks to strong demand at this level. As we already saw on Wednesday, this level has been tested before. The most likely scenario is that buyers will be able to reverse the selling pressure and push back above $4. However, a push toward $4.50 would require a significant catalyst, with demand drying up at upper levels.
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.
