October and November Promise Better Price Movements
By Mashell C., Gate.io Researcher
[TL; DR]
Bitcoin and ETH still maintain a bullish outlook.
Most of the smaller altcoins look bearish and vulnerable to the negative market sentiment.
October and November usually support bullish momentum.
Introduction
For the past three days the Bitcoin price ranged between $57,000 and $68,600. Although it exhibits a bullish cue it lacked the required strong bullish momentum to push it past the $61,000 key resistance level. In fact, on 13 August the cryptocurrency showed a strong bull-bear tussle which forced its price to fluctuate within a small range.
During that period Bitcoin had an intra-day high of $60,680.33 and a low of $57,860.24. On the same day, the Bitcoin’s market capitalization and trading volume surged by 0.60% and 25.60%, respectively, to $1,166,540,073,960 and $35,093,834,919
Bitcoin’s Current Market Performance
As of 14 August, at the time of writing, Bitcoin is trading at $60,994.87 after recording a trading volume of $23,738,876,639 within the last 24 hours. In all, the Bitcoin price has risen by 2.93% within the last 24 hours and by 7.49% within the last 7 days. Although it has a maximum supply of 21 million it has a circulating supply of 19,739,640 coin. In the last 7 days Bitcoin maintained a market capitalization of about $1.2 trillion and a trading volume of about $23,738,876,639. Significantly, the Bitcoin price is about 17.14% below its recent ATH.
Reason for Bitcoin Price Dip
The crypto market was shocked by Bitcoin’s failure to overcome the $62,000 psychological resistance level at a time that analysts have predicted its price to surge past $100,000. One of the reasons the Bitcoin price failed to rise as expected was the pause by financial institutions to acquire more stablecoins (USDT).
Explaining this development, Lookonchain said, “Institutions seem to have temporarily stopped buying, and the price of BTC dropped 4.5% today. We noticed that institutions stopped receiving USDT from Tether Treasury and transferring it to exchanges 2 days ago.” Worse still, the fall in Bitcoin price was followed by the decline of most cryptocurrencies on the market.
Bitcoin Performance versus the Rest of the Market
As of 14 August Bitcoin and the other leading cryptocurrencies which include ETH indicated bullishness. Nevertheless, most of the altcoins showed much distress as their prices were nose diving. As of 14 August Ethereum was trading at $2,719.67 after gaining by 2.47% in the previous 24 hours and by 7.67% over the past week. One of the main drivers of the Ethereum upward momentum is capital inflow through spot ETFs launched in the United States. There has also been a rise in utilization of the blockchain through a surge in activity on the decentralized finance (DeFi) applications it hosts.
Polkadot (DOT)
Within the same period Polkadot registered a price decline of about 0.51% within a 24-hour period to trade at $4.51. What shows that the altcoin was experiencing some bearish pressure is its fall in value by 1.49% within the last 7 days. The drop in DOT’s price might be due to a retracement after attaining some highs within the last few days. Such a price drop could be a sign that some investors are disapproving of its recent partnerships and interoperability features.
Solana (SOL)
Similarly, Solana gained marginally by 0, 24% to exchange hands at $144.72. Sadly, though, it lost by 6.16% within the last 7 days. It looks as if its network outage continues to affect its performance. In fact, its network challenges have been affecting it for the last few months.
Ripple (XRP)
In the short-term Ripple’s XRP has been performing well as it gained by 2.14% within a day. In a longer time frame its price rose by 11.93% within one week. Several factors seem to influence Ripple’s price surge. For example, the expectation of an amicable settlement with the United States SEC is one of the factors. There is also a high possibility that it will forge several partnerships with many financial institutions, especially if it reaches a settlement with the U.S. SEC.
Shiba Inu (SHIB)
Lastly, let’s look at SHIB, the second largest meme coin. Shiba Inu, a popular meme coin among retail investors, gained by 0.58% to close the day at $0.00001379. Nevertheless, its value only rose by about 0.14 over the last 7 days. There seems to be continued interest for the token among retail investors.
Market Sentiment and General Market Trend
Many factors that include macroeconomic fundamentals, technological developments and investor sentiments are influencing the current market conditions. Generally, the major cryptocurrencies that include Bitcoin, Solana and ETH are performing relatively well.
On the other hand, the performance of smaller altcoins show imbalance within the market and price volatility that affect the different crypto assets. Looking ahead, September is not usually the best month for cryptocurrencies as the general crypto market is often depressed. However, October and November are often the best months for the decentralized assets.
Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
