Bitcoin finishes the week under $26,000, continuing to bleed out slowly. Altcoins are faring much worse, losing more than $65 billion in market cap over the previous 10 weeks.
A difficult financial outlook
The global financial scene is not a good one for crypto. Liquidity is being sucked out of markets generally, with the U.S. and its Federal Reserve being one of the major culprits. Even with the recent good news of court victories by crypto companies over the SEC, it seems that a loosening of monetary policy is what crypto needs the most right now.
Bitcoin has followed a sideways trajectory since mid August in a pattern that looks rather like a heart monitor, with many blips up and down, and just one spike to the upside on the Grayscale news and then a fairly rapid retrace soon afterwards.
All in all, bitcoin at least does appear to be holding, although a next step down to the strong support at $24,300 could potentially be a subsequent move. The 50 week moving average also offers support at this level.
Perhaps something else to bear in mind for the bitcoin price over these next few weeks is that there isn’t a spot ETF yet. Institutions will want to buy in cheap, and so a good move to the downside before the ETF is potentially approved in October would be welcome.
Ethereum is still losing ground to its ETH/BTC pairing, although it does appear to still be in an upward trend since January 2020, so a bounce soon could possibly be on the cards given that it has returned to this trendline once more.
As far as its dollar pair goes Ethereum is actually looking rather bullish, in spite of losing nearly 22% over the last 10 weeks. The ETH price is in an extremely juicy looking ascending triangle, which it has largely been in since May 2022.
However, this triangle could play out as far as into June of 2024, although it might be expected to break earlier than this. Like BTC, ETH has once more hit the bottom of its Stochastic RSI indicator, and given that nearly all previous RSI bottoms have led to subsequent decent upside gains, it might be expected to happen again.
Where BTC and ETH have bled slowly, the altcoins have fared much worse. Solana, the large-cap layer 1 competitor to Ethereum, has been hammered over recent weeks. Since a rally top in early June SOL has decreased almost 50%. The next good support level can be found at $14.
Another top layer 1 is Cardano. The fall might have taken longer than Solana’s, but the ADA token is now at the critical support level of $0.24, a loss of nearly 46% since the last rally high. A price of just under $0.16 awaits below this.
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.