The crypto markets displayed cautious signs of recovery on Monday following a relatively stable weekend, as major digital assets encountered minimal volatility. Bitcoin spearheaded the rally, holding firm above the significant $116,000 threshold and establishing a stable atmosphere throughout the market. Even with the slight uptick, analysts indicate that sentiment regarding the short-term outlook remains wary.
At the latest update, Bitcoin was priced at $116,370, reflecting a 0.46 percent rise in the last 24 hours. The cryptocurrency fluctuated within a tight band, hitting a low of $114,903 and a high of $116,181 throughout the session. Bitcoin’s daily trading volume surged to $35.24 billion, with its market capitalisation remaining stable at $2.31 trillion, reinforcing its status as the leading digital asset globally. Additionally, Bitcoin’s market cap dominance experienced a significant decline from 66 percent to 57.2 percent, suggesting that altcoins have surpassed BTC in performance during the recent weeks. Key drivers for the flagship currency, encompass expectations surrounding US rate cuts and specific technical patterns, including the filling of a futures gap that traders are monitoring intently. Harish Vatnani, indicates that the asset encounters significant resistance at $120,000 and $125,000. “Bitcoin needs to break, close, and maintain above these resistance levels to rally further, while $105,000 and $100,000 will serve as significant support for BTC,” stated Vatnani.
Market participants and analysts appear to be in consensus, anticipating that policymakers will implement a rate cut of at least 25 basis points, bolstered by recent favorable US macroeconomic data that strengthens this belief. Markets are currently trading within a defined range, yet the potential for a resurgence in volatility looms as policy signals become more distinct. “For investors, this is a good time to enter the market at a reasonable price point and keep accumulating,” stated Subburaj. Ethereum experienced a downturn on Monday. At the latest update, ETH was priced at $4,660, reflecting a decrease of 0.35 percent over the last 24 hours. Ethereum experienced a price range of $4,581 to $4,681 throughout the day. Despite recent gains, ETH is still approximately 6 percent under its recent high of $4,953, which was reached on August 25 this year. From a technical perspective, Ethereum is consolidating around $4,600–$4,700, having rallied from early-September lows. “Resistance is anticipated around $4,760, with potential movement toward $5,000 if bullish momentum persists.” Key support is located in the range of about $4,550 to $4,650.
“Additionally, the movement of institutional capital through ETH ETFs and the decline in exchange reserves are intensifying sell-side pressure, enhancing overall sentiment.” Speculation is heating up as the Fed is anticipated to lower rates on September 17. “However, there’s a ‘catch’ — longer-term Treasury yields may remain high due to inflation, which could weaken some of the potential tailwinds for BTC,” noted the analysts.