Alexander Kuptsikevich
FxPro Financial Services Limited
Market picture
The crypto market lost 3.5% in 24 hours, again falling below $1.05 trillion. The formal start of the sell-off was the news that the SEC had delayed its review of bitcoin ETF applications.
The decline paused, anticipating further triggers, completely erasing Tuesday's upswing.
Bitcoin ended August down 11% at $26K, its worst performance since last November and the second consecutive month of declines.
Technically, the recent pullback has confirmed that BTC's 200-day average is now acting as a resistance. According to the Fibonacci pattern, the potential downside target is the $21.3K area. However, a drop to $24.7K also looks like an impressive short-term target for the bears.
Regarding seasonality, September is considered the worst month of the year for BTC. Over the past 12 years, Bitcoin has only ended the month up three times and down nine times. The average decline was 13%, and the average gain was 11%. In the first case, BTC could end September at around $22.6K and at around $28.9K in the second.
News background
JPMorgan notes that the crypto market has reached fundamentals because of a large liquidation of positions, predicting a gradual easing of pressure on digital currencies.
Bloomberg raised the odds of a spot bitcoin ETF being approved in 2023 to 75%, and to 95% by the end of 2024, following the Grayscale court ruling. Grayscale said it was unsure whether it would refile to convert its GBTC ETF into a spot bitcoin ETF.
A New York district court dismissed a class action lawsuit against decentralised exchange Uniswap, stating that the platform was not liable for fraudulent tokens traded on it.
Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.