Bitcoin (BTC) surged past $64,000 on Monday, rising to a high of $64,400 before dropping to its current levels. The world’s largest cryptocurrency has been up over 8% during the past seven days as it continues its rally following the 50 bps rate cut by the Federal Reserve. Gold also rallied to a new high, while the yen dropped further on a quiet day for the Japanese markets.
Ethereum (ETH) also maintained its position above $2,600, although sellers are looking to push it below that level. The altcoin is down almost 2% over the past 24 hours. Meanwhile, Solana (SOL) is marginally down, trading around $146, but despite being sluggish over the past 24 hours, it has registered an increase of almost 11% during the past seven days.
Crypto Investment Products Extend Positive Streak
Crypto investment products have continued to draw heightened investor interest, with funds registering their second week of inflows. According to a report by CoinShares, global digital assets posted a total of $321 million worth of inflows over the past week. However, this figure was slightly lower than the $436 million recorded last week. CoinShares stated that inflows into US-based funds made up a significant chunk of the total inflows recorded, with Switzerland following closely with $63 million, its second-largest inflows this year. However, Germany, Sweden, and Canada did not register inflows; instead, they registered outflows worth $9.5 million, $7.8 million, and $2.3 million.
According to CoinShares, the inflows were boosted by the Federal Reserve’s dovish stance and its decision to implement a 50 bps rate cut, fueling significant interest and investments in risk assets such as cryptocurrencies. As a result, crypto funds registered a 9% jump in the total assets under management (AUM), while total investment product volumes reached $9.5 billion, an increase of 9% compared to the previous week. Bitcoin-based funds were the biggest beneficiaries of the increased inflows, registering almost $300 million. Short-Bitcoin investment products registered inflows worth $5.1 million as investors sought to take advantage of recent price movements.
However, Ethereum-based funds have continued to underperform, recording outflows for the fifth consecutive week, with $29 million worth of outflows during the previous week. According to CoinShares, Grayscale’s Ethereum Trust (ETHE) saw consistent outflows and outflows from newly issued ETFs. On the other hand, Solana investment products have maintained steady weekly inflows, recording $3.2 million in inflows over the past week.
AI Tokens Lead Altcoin Surge
AI-related tokens led the crypto rally on Monday, with TAO, LPT, NEAR, and RNDR registering double-digit gains, becoming the best performers in the market. NEAR and decentralized computing platform Render (RNDR) registered increases between 18% and 20% over the past 24 hours. Decentralized machine learning protocol Bittensor (TAO) is up an incredible 87% over the past week. LPT also registered considerable gains after the CEO of Digital Currency Group, Barry Silbert, called the token an “under-the-radar crypto AI play.”
Another notable performer was Celestia (TIA), which registered a 12% jump on Monday following news that its ecosystem development organization, Celestia Foundation, was raising $100 million in an investment round led by Bain Capital Crypto. Price action for AI tokens was further bolstered after Kamala Harris, the Democratic presidential nominee, stated at a fundraiser that she would be a tech-friendly president and would encourage innovative technologies, including AI and digital assets.
Could BTC Hit Record High In Q4?
In 2019, rate cuts saw Bitcoin (BTC) register a price drop. However, things may be different this time, thanks to inflation cooling. Markus Thielen, the founder of 10x Research, predicted BTC to reach new all-time highs in the last quarter of the year, citing several catalysts that could ignite a rally. Thielen cited the FTX estate redistributing some of the $16 billion worth of assets to creditors over the next few months, with some funds potentially flowing back to crypto assets.
The Securities and Exchange Commission also approved listing options for BlackRock’s spot Bitcoin ETF, clearing the path for the launch of more financial instruments around the ETF and bringing more liquidity to BTC. According to K33 Research, BTC is at a crucial stage. During previous bull cycles, the trough-to-peak lasted over 1050 days, with the most significant gains being witnessed in the final 365 days. The current peak-to-trough has seen 672 days so far, putting the cycle in the zone where prices could begin surging.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is trading just under the $63,500 mark as markets remain optimistic following the Federal Reserve’s decision to impose a 50 bps rate cut. On Monday, BTC reached a day high of $64,712 as buyers attempted to push above the 200-day SMA and $65,000. However, for the moment, buyers are unable to move above the 200-day SMA, with sellers having the upper hand.
“Bitcoin is at a crucial point. A major surge could begin if it closes above $70,000. If it fails to close above that level, it might drop toward $60,000.”
BTC’s recent rally has other reasons besides the Fed’s rate cut. Last week, the Bank of Japan kept interest rates steady, suggesting no immediate need or plan to raise them. The Bank of Japan’s decision, shortly after the Fed’s rate cut, halted the yen from further appreciating. According to Goldman Sachs, the Fed’s rate cut has allayed concerns about a potential recession.
“Our G10 FX team expects a slight rebound for the U.S. dollar over the next 3 months before easing again on a 6- and 12-month view.”
The price chart shows that BTC was extremely bullish last week, going past several key resistance levels and moving averages. It moved above the 50-day SMA and $60,000 on Tuesday, settling at $60,318. BTC continued to push higher on Wednesday despite facing significant selling pressure and moved to $61,772. By Friday, it had climbed to a day high of $64,000 as buyers looked to push above the 200-day SMA. However, they could not do so, so BTC settled at $63,229.
Source: TradingView
The weekend saw buyers and sellers struggling to establish control. BTC faced significant selling pressure but registered a marginal increase on Saturday and Sunday despite falling to a day low of $62,427 on Sunday. The week began with buyers pushing to move above the 200-day SMA and $65,000. BTC reached a day high of $64,712, but with selling pressure increasing, buyers lost steam, and BTC fell back below $64,000, eventually settling at $63,348 after a drop of 0.37%. The current session sees BTC marginally up as buyers and sellers struggle to establish control.
As we can see in the price chart, BTC faces resistance at $64,000 and $65,000. Buyers will look to drive BTC above this level, but bears are holding their ground for the moment. If buyers can keep BTC above $60,000, the likelihood of a move past $65,000 increases. In such a scenario, BTC could surge to $70,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) ’s recent recovery has allowed it to reclaim the $2,400 and $2,500 levels and push it past $2,600. ETH had been struggling to push above the 20-day SMA and $2,400 until last week but finally did so on Thursday when it jumped by almost 4% to move past the 20-day SMA and $2,400 to settle at $2,465. Buyers maintained momentum on Friday, and ETH rose by 3.90% to push above $3,500, and the 50-day SMA settled at $2,561. The weekend saw selling pressure increase as ETH dropped to a low of $2,530 on Saturday. However, it quickly recovered and registered an increase of 2.04% to push above $2,600 and settle at $2,614.
Source: TradingView
However, ETH fell back in the red on Sunday as sellers dragged it to a day low of $2,525. Crucially, ETH was able to stay above $2,500 as buyers bought the dip. However, they could not reverse the selling pressure as ETH dropped by 1.19% to settle at $2,583. The current week began with buyers testing the $2,700 level. ETH rose to a day high of $2,704 before sellers pushed it back below $2,700. Despite the intense selling pressure, ETH registered an increase of 2.48%, settling at $2,647. The current session sees ETH marginally up as buyers and sellers struggle to take control.
ETH faces two crucial levels that could dictate its price action. If buyers can push it above $2,700, the next critical level is $2,850. If ETH can push above both these levels, it indicates a shift in sentiment and puts a move past $3,000 on the table. However, if sellers take control and push ETH back below $2,500, the bears still have the upper hand. A drop below $2,500 could see ETH fall to $2,400 before stabilizing.
Solana (SOL) Price Analysis
Solana (SOL) is still struggling to push above $150, with buyers unable to overcome the resistance at this level. SOL picked up towards the end of the previous week, registering an increase of 6.36% on Thursday to push above the 50-day SMA and settle at $142. Friday saw buyers attempt a move past $150 as SOL reached a day high of $152. However, with demand drying up at upper levels, sellers could push SOL back below $150, eventually settling at $146 after an increase of 2.67%.
Source: TradingView
The weekend was mixed for SOL as it registered an increase of 1.90% on Saturday to settle at $149.50. However, despite a strong session, a move past $150 did not materialize. Sellers took over on Sunday as SOL slipped into the red, dropping by 3.20% on Sunday to end the weekend on a bearish note at $144. Sellers had managed to drop SOL to a day low of $141, but with investors buying the dip, SOL was able to recover. The current week began with SOL experiencing significant volatility as buyers and sellers struggled to establish control. As a result, SOL saw considerable fluctuations. The current session sees SOL up by almost 1.90% as buyers look to make another attempt at pushing above $150.
If a move past $150 materializes, the next crucial levels are $155 and $160. Should SOL push above these levels, we could see a rally to $180. However, sellers are expected to defend both levels. If sentiment changes and sellers retake control, it would mean selling on relief rallies. In such a scenario, SOL could drop to $140.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) is looking to push above $2 after starting the current week strongly. As we can see in the price chart, WIF registered a jump of almost 10% on Thursday to surge past the 50-day SMA and settle at $1.77. Buyers attempted a move past $2 on Friday as WIF rose to a day high of $1.90. However, with demand drying up, sellers could push WIF back below $180. WIF eventually settled at $1.78, registering only a marginal increase. The weekend saw bearish sentiment return as WIF dropped to a day low of $1.66. However, investors bought the dip and pushed the price back above $1.70. WIF eventually settled at $1.77 after a marginal increase.
Source: TradingView
Selling pressure increased on Sunday as WIF dropped by almost 5% to $1.69. Sellers had dragged WIF to a day low of $1.62, but with strong support at $1.60, it recovered and settled at $1.69. The current week began with buyers back in the market as WIF registered an increase of 2.95% to $1.74. The current session sees WIF up by almost 8% as markets rebound. Buyers will look to make another attempt to move past $2. However, sellers are expected to defend this level and look to drive WIF towards its $1.60 support level.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has finally pushed above the $4.50 level during the current session as optimism builds after weeks of frustration. DOT had come agonizingly close to pushing above $4.50 on several occasions but fell short each time. The altcoin had been knocking at the doors of the $4.50 level since the end of last week, registering a day high of $4.49 on Friday. However, buyers lost momentum in the face of strong resistance, and DOT fell back below the 50-day SMA and settled at $4.34.
DOT registered an increase of 2.76% on Saturday, pushing back above the 50-day SMA and settling at $4.46. However, it could not push higher and fell back into the red on Sunday, dropping by 3.36% and ending the weekend on a bearish note at $4.31.
Source: TradingView
The current week began with DOT dropping to a low of $4.24. However, it quickly recovered as buying activity picked up, eventually registering an increase of 3.48% to push back above the 50-day SMA and settle at $4.46. The current session saw DOT finally break above $4.50. DOT is currently up by 2.24% and trading at $4.57. A bullish MACD indicates that buyers are firmly in control. If DOT can close above $4.50, buyers will attempt a move to $5. However, for such a move to materialize, buyers must keep DOT above $4.50.
Toncoin (TON) Price Analysis
Toncoin (TON) continues to trade in a narrow trading range, between $5.40 and $5.80. TON has been unable to push above the 50-day SMA and the resistance at $5.80 since Thursday when it rose to a day high of $5.82 before being pushed back. TON attempted to go above this level on Friday, rising to a day high of $5.79. However, sellers were able to retake control and TON eventually registered a drop of 2.27% to settle at $5.55. The weekend was mixed for TON as it registered an increase of 2.02% on Saturday before dropping by 0.90% to end Sunday at $5.61.
Source: TradingView
The current week began with TON facing volatility as buyers and sellers struggled to establish control. TON eventually registered an increase of 0.56% and settled at $5.64. The current session sees TON marginally up and trading at $5.62.
Injective (INJ) Price Analysis
Injective (INJ) surged past $20 towards the end of last week after registering an increase of 3.34% on Thursday, allowing it to rise to $20.45. INJ continued to push upwards as bullish sentiment picked up on Friday and rose to $20.99. The weekend began with INJ facing significant volatility on Saturday as buyers and sellers struggled to establish control. In the end, INJ registered a marginal increase and rose to $21.16, going above a crucial resistance level. Buyers consolidated their position on Sunday after thwarting sellers’ attempts to drive the price back below $20. INJ eventually registered an increase of 2.66% to end the weekend at $21.73.
Source: TradingView
The current week began with INJ facing selling pressure yet again as sellers looked to push the price back below $20. However, the price recovered after dropping to a low of $21.11 to register an increase of 3.34% to settle at $22.45. However, the current session sees INJ in the red, with the price down by just over 1.09% and trading at $22.21.
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.
