Bitcoin experienced a minor decline of 0.92% in the last 24 hours, settling at $114,548 as of Monday, while Ethereum maintained its position at approximately $4,302. Analysts have noted that Bitcoin is in a consolidation phase near the $114,500 mark after it briefly soared to nearly $118,000. In the same vein, Ethereum has exhibited stability around the $4,200 level despite facing profit-taking pressures.
Edul Patel, CEO of Mudrex, highlighted that on-chain data indicates significant outflows of over 420,000 ETH from exchanges in the past week. This trend of investors moving their ETH off exchanges usually points to a diminished willingness to sell, suggesting a potential upward movement in the near future. Patel emphasized the importance of upcoming macroeconomic indicators, including U.S. initial jobless claims, PMI data, and a speech from Federal Reserve Chair Jerome Powell, which could sway market dynamics.
CoinSwitch Markets Desk remarked that Bitcoin has been on a downward trend since Friday, sliding from approximately $117,800 to its current levels. The enduring consolidation failed to gain momentum, leading to a slide below $115,000 that has now established immediate support at around $114,000 and resistance in the $115,500 to $116,000 range.
Ethereum, meanwhile, extended its downturn, dropping from the $4,500 to $4,600 range to test the critical $4,300 level. Despite some minor rebounds, intensified selling pressure has overwhelmed support levels at around $4,400.
As the week unfolds, significant events are anticipated, including Powell’s upcoming speech regarding the economic outlook that may influence short-term market direction. Additionally, the market will be watching for U.S. second-quarter GDP data and August inflation figures releasing later in the week.
At 10:15 AM IST, Bitcoin was trading at $114,544, reflecting a 0.94% decrease over the past 24 hours and a 1.33% decline over the past week. Ethereum was at $4,301, down 3.86% in the last 24 hours and 7.50% over the past seven days. The overall cryptocurrency market capitalization stood at approximately $3.97 trillion on the same day.
Market analysts provided varied insights. Sathvik Vishwanath, Co-Founder & CEO of Unocoin, mentioned that Bitcoin is hovering near $114,400, maintaining critical support just above $114,000 while facing resistance between $117,000 and $118,000. He stated that this period of consolidation might lead to a potential breakout. Expectations surrounding U.S. rate cuts have been fueling a greater interest in risk assets, complemented by steady ETF inflows that provide institutional support. Vishwanath warned that a decisive move above the resistance line could send Bitcoin toward $125,000, while a fall below the support level could see it test the $110,000 range.
Parth Srivastava, Head of Quant at 9Point Capital’s Research Team, characterized Bitcoin’s current state as a “holding pattern,” where the market seems to be pausing before making its next significant move. He noted that the underlying volatility appears to be building up, and should Bitcoin continue to hold steady, it might pave the way for a potentially intense upward shift.
Overall, Bitcoin and Ethereum are presently navigating a complex landscape, with market participants remaining attentive to macroeconomic indicators and potential technical breakouts.
