Cautious Rebound in Cryptocurrencies

By:

Published: Sep 10, 2024, 08:52 GMT+00:00

Solana has found support at $120, a key pivot level over the last ten months, and has risen to $134 at the time of writing.

Bitcoin and Solana Navigate Volatility Amid Upcoming Economic Indicators

The turnaround in sentiment on the US markets saw the crypto market capitalisation rise by 3.2% in 24 hours to reach $2 trillion. However, it is too early to talk about a reversal in growth, as this level could prove resistant to intensified selling. The Cryptocurrency Sentiment Index rose to 33, the highest since late August, but is still in the ‘fear’ zone.

Bitcoin posted an impressive 7% gain on Monday but corrected some of the gains early in the new day, adding 4% in 24 hours. The technical picture remains supportive of a rebound, but buyers are being cautious and taking profits quickly.

Solana has found support at $120, a key pivot level over the last ten months, and has risen to $134 at the time of writing. Technically, the recovery looks relatively straightforward up to the $149-153 area, where the 50- and 200-day moving averages are centred. A break above $160 would confirm a breakout.

In our view, caution and a tendency to sell growth will prevail in the market, at least until the release of US inflation data on Wednesday. This could continue until the Fed’s interest rate decision on September 18th.

Crypto News

According to CoinShares, investments in crypto funds fell by $726 million last week, following outflows of $305 million the week before; the figure was the highest since late March. Bitcoin investments fell by $643 million, Ethereum by $98 million and Solana by $6 million.

According to Presto Research, the hash rate hit an all-time high, leaving Bitcoin ‘severely undervalued’. Bianco Research predicts that spot bitcoin ETFs will soon be more in demand in the market.

Bitcoin could reach $90K by the end of the year if Donald Trump wins the US presidential election in November, according to Bernstein. However, if Kamala Harris is successful, BTC could break through the current lows and test levels in the $30K to $40K range. Unlike Trump, Harris did not mention cryptocurrencies in her campaign message.

Cardano founder Charles Hoskinson said that his blockchain has always been the main competitor to the BTC network. The developer is confident that the Cardano cryptocurrency is capable of challenging Bitcoin, the top cryptocurrency by market capitalisation.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

About the Author

Alexander Kuptsikevichcontributor

Alexander is engaged in the analysis of the currency market, the world economy, gold and oil for more than 10 years. He gives commentaries to leading socio-political and economic magazines, gives interviews for radio and television, and publishes his own researches.