Bitcoin remains steady at 113,000 USD as investors await the speech of Federal Reserve Chair Jerome Powell.
Ethereum, XRP, and Solana are moving in opposite directions, leaving traders uncertain about the next trend of the cryptocurrency market.
MAIN CONTENT
Bitcoin maintains above the important support level of 113,000 USD while the cryptocurrency market shows signs of weakening.
Ethereum struggles to build new upward momentum as on-chain address activity declines sharply.
XRP shows optimism due to positive technical signals, while Solana is under pressure and has not shown clear signs of recovery.
Can Bitcoin maintain important support when the market only shows weak recovery?
Bitcoin remains steady at the 113,000 USD price level despite the cryptocurrency market dropping slightly by 1%, bringing the total market capitalization to about 3.85 trillion USD. However, significant selling pressure with nearly 78,000 investors liquidated in 24 hours, totaling 222.5 million USD in losses, has weakened market sentiment further.
The fact that Bitcoin remains above the previous accumulation peak creates an important support point. However, if the price drops below 113,000 USD, it may trigger increased selling pressure due to technical reactions and market sentiment. Analyst Benjamin Cowen predicts that Bitcoin's current cycle is on day 1,016 and previously peaked around day 1,060, meaning that the cycle peak is likely to occur from October to December this year.
Bitcoin cycles usually peak around day 1,060. Currently, it is day 1,016, indicating that the cycle peak may come by the end of the year.
Benjamin Cowen, cryptocurrency analyst, 2024
Given the current situation, monitoring the support level of 113,000 USD is very important for investors to make appropriate decisions during the current volatility.
What challenges is Ethereum facing?
Ethereum continues to trade within a narrow range after a period of strong volatility, making it difficult to create new growth momentum. At the same time, Ether-related ETF funds recorded over 900 million USD in outflows last week, indicating the cautious sentiment of institutional investors.
On-chain data shows that the number of active ETH addresses has decreased by 28% since the end of July, reflecting a decline in cryptocurrency circulation among retail investors. According to experts, this decline limits Ethereum's short-term price increase potential, even if Bitcoin stabilizes.
Technically, ETH is approaching a breakout phase as it surpasses the resistance level of 4,300 USD and the 50-period moving average on the 4-hour chart, which could quickly help the price reach the 5,000 USD mark if demand increases.
Why are XRP and Solana under pressure while having potential bright spots?
XRP has seen a slight increase with a current price of about 2.86 USD, supported by expectations of greater transparency in the regulatory framework. Chart analyst Ali Martinez pointed out a buy signal according to the TD Sequential model on the hourly timeframe, opening up the possibility of a short-term recovery.
Conversely, Solana still maintains appeal from a positive ecosystem but the price has dropped 1.5%, fluctuating around the 183.7 USD mark and down 7% weekly. Experts believe there are no clear signs of price increases for Solana and forecast that the price may decrease to about 155 USD before returning to the 200 USD range.
Technical signals and ecosystem activity significantly impact price volatility but are not sufficient to confirm a sustainable upward trend for Solana.
Ali Martinez, chart analyst, 2024
What is the impact of Fed Chair Jerome Powell's speech on the cryptocurrency market?
In a macroeconomic context filled with instability, Bitcoin still holds above 113,000 USD, indicating relatively strong resistance. Investors are currently focused on Jerome Powell's speech at the Jackson Hole conference to seek signals about monetary policy related to interest rates and the path of rate cuts.
If the Fed indicates a cautious plan for rate cuts, Bitcoin may face short-term obstacles. Conversely, any signs of easing could stimulate capital inflow into the cryptocurrency market, paving the way for prices to rise again.
Frequently Asked Questions
Could Bitcoin drop below the support level of 113,000 USD?
With significant liquidation pressure and weak market sentiment, the possibility of Bitcoin falling below 113,000 USD could occur, but this level remains an important support threshold according to technical analysis.
Does Ethereum have short-term price increase opportunities?
Ethereum needs to break through the resistance of 4,300 USD and maintain on-chain activity, otherwise, growth momentum will be limited due to the decreasing number of retail investors.
Should XRP and Solana be invested in now or wait?
XRP shows positive signals thanks to legal expectations, while Solana continues to face strong downward pressure, investors should consider carefully before making decisions.
How much influence does Powell's speech have on the cryptocurrency market?
The speech will indicate the direction of monetary policy, immediately affecting sentiment and capital flows into/out of the cryptocurrency market.
What is the trend of the cryptocurrency market in the near future?
Current indicators and reports suggest that the market may undergo a slight correction phase, with the potential breakout depending on policy signals from the Fed.
Source: https://tintucbitcoin.com/bitcoin-giu-113k-usd-eth-xrp-bien-dong/
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