Big surprise awaits BTC holders

September 09, 2024

Reading time: 5 minutes

Bitcoin order books signal potential bottom, bullish shift ahead

Key points:

  • The Federal Reserve's expected interest rate cut could provide a boost to Bitcoin.

  • Despite potential short-term volatility, the overall trend for Bitcoin remains bullish.

News - Bitcoin is exhibiting signs of a potential price reversal as market depth, a measure of liquidity, has been declining.

This suggests that traders are becoming less willing to buy or sell BTC at current prices, which could signal a bottoming-out phase.

Analysts at Hyblock Capital have observed that the market depth both near and far from the current price has been drying up. This pattern is often seen at market turning points, indicating that a bullish shift may be on the horizon.

Interest rate cut anticipation - The Federal Reserve's anticipated interest rate cut could further bolster Bitcoin's price. While a smaller rate cut is more likely, a larger reduction could temporarily spook the market due to concerns about the economy.

However, the overall trend for Bitcoin remains positive, driven by the expected rate cut and the potential reversal from the recent market low. As market conditions continue to evolve, traders will be closely watching Bitcoin's price action for signs of a sustained uptrend.

Crypto market booms, but ownership remains stagnant, Fed finds

Key points:

  • Ownership rates declined during the 2022 crypto winter. 

  • However, interest in purchasing crypto increased.

News - A recent study by the Federal Reserve has revealed a significant disparity between the growth of the cryptocurrency market and the increase in ownership rates. Despite a substantial rise in the value of cryptocurrencies, the number of people owning them has not kept pace.

The survey, conducted between January 2022 and July 2024, found that crypto ownership declined during the 2022 market downturn but has failed to rebound. While interest in future purchases has increased, it remains below pre-winter levels.

What’s more? The Fed's findings contrast with estimates from other sources, such as Coinbase, which reported a higher number of crypto owners in the United States. This discrepancy suggests that the overall adoption of cryptocurrencies may be slower than previously thought.

The continued volatility of the cryptocurrency market could also be a factor in deterring potential investors. Despite the recent price gains, there remains a high degree of uncertainty surrounding the future of cryptocurrencies.

Toncoin outperforms its competitors after Durov release, defying market slump

Key points:

  • Toncoin has significantly outperformed other major cryptocurrencies in recent days.

  • Analysts believe that Toncoin could continue to appreciate.

News - Toncoin has demonstrated remarkable resilience, surging in price despite a broader market downturn. The cryptocurrency's recovery was sparked by the release of Telegram founder Pavel Durov from French custody in August.

While the overall cryptocurrency market has been struggling, Toncoin has managed to outperform its peers. This surge can be attributed to several factors, including the positive impact of Durov's release and Telegram's growing involvement in the crypto space.

Telegram's financial statement revealed a significant exposure to cryptocurrencies, with over 40% of its 2023 revenue coming from crypto-related activities. This suggests that the company's success is closely tied to the performance of cryptocurrencies like Toncoin.

Despite Telegram's crypto-heavy business model, high-profile investors have shown confidence in the company. As Toncoin continues to gain momentum, it remains to be seen whether it can sustain its upward trajectory in the face of ongoing market volatility.

Solana's on-chain activity suggests strong recovery potential

Key points:

  • Solana has consistently outperformed the broader cryptocurrency market in recent months.

  • Despite a recent decline, on-chain activity on the Solana network is showing signs of recovery.

News - SOL has demonstrated remarkable resilience, outperforming the broader cryptocurrency market in recent months. Despite facing headwinds, SOL has consistently shown its ability to bounce back from dips and maintain a strong upward trajectory.

There are growing signs of a shift in market sentiment towards Solana. The number of net longs has increased significantly, indicating a growing belief in SOL's potential for further gains. Additionally, SOL's price has consolidated above a key support level, suggesting that it may be poised for a breakout.

The declining dominance of Bitcoin could also provide a tailwind for Solana. As investors shift their focus to altcoins, SOL's strong fundamentals and growing popularity could make it a prime target.

On-chain activity on the Solana network has been showing signs of recovery, which is a positive indicator for the future. Increased transaction volume and network usage suggest that demand for SOL is growing.

Overall, the outlook for Solana remains bullish. With a strong foundation, positive market sentiment, and the potential for increased demand, SOL looks well-positioned for further gains in the coming months.

Did you know?

  • According to CoinMarketCap, over the past decade, the cryptocurrency market has seen explosive growth, with the number of cryptocurrencies soaring to over 23,000 from just seven in 2013.

  • Mt. Gox, a Tokyo-based Bitcoin exchange, controlling over 70% of global transactions by early 2014, abruptly shut down. It was hacked and thousands of Bitcoins were stolen; the company filed for bankruptcy shortly thereafter.

  • The smallest unit of Bitcoin is called a satoshi, named after Satoshi Nakamoto, and is equivalent to one hundred millionth of a Bitcoin (0.00000001 BTC).

Top 3 coins of the day

Bitcoin Cash (BCH)

Key points:

  • At press time, BCH was trading at $309.

  • It was down by about 3.49% in the past week.

What you should know - Bitcoin Cash is currently navigating a challenging zone, with the price attempting to recover from a support level around $274.8. The bulls are making an effort to regain momentum, as indicated by the slight upward movement from the support line. However, a descending trendline resistance looms overhead, close to the $360 to $400 range. Breaking above this zone will be crucial for a sustained bullish recovery. The MACD indicator shows a slight bullish crossover, suggesting that buyer momentum might be increasing. However, volume remains relatively low, indicating caution among traders. For BCH to move convincingly upwards, it will need to break above the resistance and sustain higher trading volumes.

Litecoin (LTC)

Key points:

  • LTC was trading close to its oversold condition, at press time.

  • A trend reversal could soon kick in if volume strengthens.

What you should know - Litecoin appears to be struggling to break free from its recent downtrend, with multiple exponential moving averages (EMAs) acting as significant resistance levels. The 20, 50, 100, and 200-day EMAs are all trending downward, indicating persistent bearish sentiment. The Relative Strength Index is hovering near the oversold territory at 39.02, suggesting a lack of buying momentum. The recent decline of 72.38% from its local high highlights the challenges facing LTC. To initiate a reversal, Litecoin needs to close above the nearest resistance levels marked by the EMAs. A further drop below the support level at around $55 could trigger increased selling pressure.

Sui (SUI)

Key points:

  • At press time, Sui was trading at a 7-day premium of 15.59%.

  • It outperformed its competitors by a significant margin.

What you should know - SUI is trading near a critical resistance level of $1.12, with a recent uptrend halted by the upper Bollinger Band, suggesting a potential pullback or consolidation phase. The support level at $0.64 has provided a solid foundation for accumulation, as indicated by the Accumulation/Distribution line trending upwards. However, the recent volume surge has not been enough to push SUI above the key resistance level, indicating caution among traders. The Bollinger Bands are widening, signaling increased volatility ahead. For a bullish continuation, SUI needs a decisive break above $1.12, which could open the path toward the next psychological resistance. On the downside, if SUI fails to sustain above $0.90, it may retest the lower support at $0.64.

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