BTC is seeing one of its biggest losses this month. The bulls failed to push prices to the highs many anticipated as September comes to an end.
The downtrend is not peculiar to just the largest cryptocurrency. The global cryptocurrency market cap is seeing a massive decline as trading volume plummeted. Low interest in the market, coupled with significant selloffs, resulted in valuation dropping by over 3% in the last 24 hours.
Will the declines persist throughout this week?
Top Four Cryptocurrencies to Watch
BTC/USD
Bitcoin (BTC) is currently experiencing a significant price correction, marking its most substantial bearish trend in the past three weeks. Starting the day at $65,602, Bitcoin faced strong selling pressure, preventing any upward movement.
Moreover, this intense selling pressure led to a price drop, breaking through several support levels, including the critical $64,000 mark. As of now, Bitcoin is trading at $63,500, reflecting a decline of over 3% within the last 24 hours.
Yesterday’s intraday trading pattern hinted at this potential downturn. On-chain data analysis suggests that a decrease in ETF buying activity drives the current decline. This analysis also highlights a noticeable drop in funding rates, particularly in major markets like the US and Korea. This decline is further evidenced by the negative Coinbase premium and Korea premium, indicating reduced buying interest.
Despite the bearish sentiment, spot traders are displaying cautious optimism. This optimism stems from the observation that Bitcoin reserves on exchanges continue to dwindle, suggesting a holding sentiment among investors.
Additionally, exchange flow remains negative, indicating that traders are transferring fewer assets onto trading platforms. This reduced activity might signal a belief that the current price dip presents a buying opportunity.
However, it’s crucial to acknowledge the overbought Relative Strength Index (RSI), which traditionally foreshadows a potential sell-off. The on-chart RSI is also showing signs of weakness, declining from 65 to 55 in under 24 hours, directly correlating with the increase in selling volume.
Additionally, this bearish trend is further confirmed by the declining Accumulation and Distribution chart, indicating the bulls’ inability to absorb the excess supply.
Given the predominantly bearish indicators, Bitcoin might experience further downward price movement. With the 23% Fibonacci retracement level already breached, buyers are anticipated to establish a defense line around the 38% Fibonacci level, situated at $62,600. However, the possibility of deeper retracements, potentially driving the price as low as $61,000, cannot be disregarded.
Importantly, a rebound in Bitcoin’s price remains possible if trading conditions improve. Should positive sentiment return, reclaiming the $65,000 level before the end of the week is achievable.
UNI/USD
Uniswap recently surged to a high of $7.74 as it headed for $7.80 but halted its advances due to a massive drop in buying volume. The bears soon staged massive selloffs that saw prices retrace to a low of $7.27. Although its exchanging close to its opening price, indicators like the bollinger bands suggest the cryptocurrency will see more decline.
The asset surged above the upper band on Thursday, opening trading at $6.77 but rising to a high of $7.40. The trend continued over the next three days as uptrends continued. With the downtrend imminent, the bulls will look to keep the price above $7.30.
WIF/USD
Dogwifhat’s price continues to climb, defying bearish pressure. Opening at $2.45, it briefly dipped to $2.33 before rebounding to trade above its starting point. This resilience suggests strong bullish momentum, but the lack of significant gains leaves room for a potential bearish reversal.
Yesterday’s trading session echoed this struggle for dominance. Starting bearishly at $2.36, WIF plummeted to $2.25 before surging to $2.57, failing to break the $2.60 resistance level. This back-and-forth highlights the uncertainty in the market.
Despite trading above the Bollinger band since Tuesday’s breakout, WIF hasn’t seen the anticipated trend reversal. However, current market activity suggests this correction could begin this week. The momentum indicator supports this, showing a weakening upward trend.
Adding to the bearish signals, the relative strength index (RSI) sits at 78. This marks the fifth consecutive day above the overbought threshold of 70, signaling a much-needed correction.
All signs point towards a potential downturn within the next 24 hours. WIF may drop to the 23% Fibonacci retracement level at $2.32. Failure to hold above this support could trigger a further decline to the 38% level. Although historical price action suggests a potential halt at this point, breaching this level could send WIF plummeting below $2.
SOL/USD
Solana’s recent trading activity reveals growing selling pressure, potentially ending its impressive uptrend. While losses remain minimal, they highlight increasing bearish sentiment as traders begin to secure profits.
Mirroring this shift, the relative strength index is on a downtrend, losing almost 2 points in the previous trading session alongside the declining momentum indicator. This suggests waning strength in SOL’s upward trajectory.
Adding fuel to the bearish fire, SOL’s recent price surges, while impressive, failed to break through the upper limit of the Bollinger band. The chart reflects this struggle with multiple wicks protruding beyond the band. This often signals an impending trend reversal, but in this case, the Bollinger band has widened to accommodate the volatile price action.
Despite this, most indicators paint a bearish picture for SOL’s immediate future. Bulls will aim to defend the $154 support, a crucial level representing both the 23% Fibonacci retracement and a zone of concentrated buying pressure. However, previous price action shows a possibility of slipping below this support.
Should this occur, SOL might revisit the $150 support, a level historically proven to be vulnerable. This level’s proximity to the 38% Fibonacci retracement at $149 indicates a minor demand zone. However, traders might find more security at the $142 support, a level that has successfully repelled previous bearish attacks.
