Crypto Price Analysis 9-9 BTC, ETH, SOL, TON, DOT, WIF, TIA

Crypto Markets Languish Amidst Negative Sentiment

During the weekend, crypto markets plummeted into a state of extreme fear, with prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and others experiencing significant losses. This downturn dragged the combined crypto market cap below $2 trillion.

BTC tumbled to a weekend low of $52,714, while ETH perilously approached a dip below $2,200 on Sunday. SOL also reached a low of $126 as markets turned bearish after US job market data missed expectations. Some cryptocurrencies, including BTC and ETH, fell below pivotal levels. The uncertainties prevailing among market observers as the upcoming FOMC meeting nears further impacted investor sentiment. Other factors influencing the markets include the ongoing Telegram saga and the Ripple lawsuit, which continue to fuel speculations.

US Job Data Disappoints

US and crypto markets turned red following weaker-than-anticipated US job figures, indicating an economic slowdown. According to analysts, the lackluster job growth reinforced the narrative of an economic downturn. They also noted that September has historically been a subdued period for crypto and equities. Following the job market data, analysts predicted a tumultuous week for crypto markets due to the unexpected volatility. Job market figures fell short of expectations, coming in at 7.7 million, a 4.6% decline from the anticipated 8.1 million. Consequently, market observers now predict a 50 basis point rate cut by the Federal Reserve. The wider impact of the rate cut and job market data remains unclear given September's reputation as a historically difficult month for stocks and crypto.

Leena ElDeeb, a research analyst at 21Shares, commented:

"The recent US labor market results acted as a moment of truth for risk-on assets like bitcoin, as the labor market is considered the main sector that may influence the Fed's decision to cut rates this month. With a slightly improving unemployment rate, investors traded positively, pricing in a looser monetary policy on September 18. A rate cut bodes well for risk-on assets, which have historically enjoyed the expansion of investor appetite as borrowing costs decrease. If a hard economic landing is avoided, bitcoin and the broader market may see appreciation in the fourth quarter, driven by these liquidity dynamics."

Crypto Markets Lack Near-Term Catalysts

JPMorgan noted in a research report on Friday that the crypto market had recorded a 24% decline from its March peak, indicating that it was anticipating the next catalyst to foster growth, maintain engagement, and trigger a price recovery.

"Overall, we continue to see the crypto ecosystem lacking major catalysts, and we thus expect crypto token and asset prices to be incrementally more sensitive to macro factors."

Despite the market downturn, JPMorgan observed an uptick in trading volumes in August, with the total average daily volumes (ADV) rising by around 8%. A Bitcoin analyst predicted the "biggest bull cycle," with $45,000 now serving as the new price floor. The analyst stated that BTC is undergoing final corrections and could experience a two-year bull run. The analyst identified the $53,000 price level as the asset's next potential price dip target, although few analysts were willing to declare an end to BTC's price consolidation. However, entrepreneur, analyst, and trader Michael van de Poppe believes that BTC's recent price correction is nearing its conclusion.

"Liquidity was taken & #Bitcoin is back up to $54.8K. Expect a max of $55.5K on this run and then we could be revisiting $53K before clearly breaking back upwards. Final corrections & then 2 years bull."

Investors remain skeptical about the possibility of new price lows, even a month after BTC fell below $50,000. This hesitation has contributed to subdued market conditions, despite favorable macroeconomic conditions approaching.

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) suffered a significant downturn on Friday, dropping below $55,000. Sellers drove the price down to a day low of $52,622 before a slight recovery pushed it back above $54,000. The price closed at $54,205. Several upcoming events could significantly impact the price of BTC. This comes after the world's largest cryptocurrency shed over 5% during the past week. Analysts have noted low investor confidence, but upcoming events could act as catalysts and trigger a recovery. Meanwhile, spot Bitcoin ETFs continue to perform poorly and have experienced substantial outflows.

Bitcoin ETFs experienced outflows of $170 million on September 6, bringing the cumulative weekly outflow to $706 million. According to data, spot Bitcoin ETFs have been in the red for 8 consecutive days, with none of the 12 ETFs reporting net inflows over the past week. Fidelity's FBTC ETF reported outflows of over $85 million on September 6, resulting in a weekly outflow of just over $404 million. Grayscale's GBTC witnessed a withdrawal of $52,87 million on September 6, recording a weekly outflow of $160 million.

Analyzing the BTC price, 10x Research suggested a potential drop to $45,000 and highlighted a decline in active addresses to 612,000. Additionally, the Mayer Multiple fell below 1, indicating a further decline. The company stated:

"Bitcoin addresses peaked in November 2023 and sharply declined after the first quarter of 2024. When the amount of BTC held by short-term holders began to decline in April, long-term holders took advantage of high prices to exit, suggesting a cycle top had been reached."

BTC declined throughout last week after failing to surpass the 20-day SMA on Tuesday, reaching a low of $57,529. Sellers attempted to push the price below $55,000 on Wednesday, leading to a day low of $55,658. However, buyers countered the selling pressure, pushing BTC up by 0.85% to $58,017. Selling pressure intensified on Thursday and Friday, causing BTC to drop by 3.15% and 3.53%, respectively, settling at $54,205 and breaking the crucial $55,000 price level. Sellers drove BTC down to a low of $52,622 on Friday before it rebounded to settle above $54,000.

Over the weekend, buyers attempted a recovery, with BTC registering a marginal increase on Saturday and a 1.25% increase on Sunday, closing the weekend at $54,981. The current session shows BTC marginally up, trading above the $55,000 price level. The $50,000 price level holds great significance for BTC at this juncture. If buyers regain control of this level, it would signal a buying dip by bulls, potentially leading to a rebound towards $57,000-$58,000. However, a drop below this level could test the $50,000 support level.

Ethereum (ETH) Price Analysis

Ethereum (ETH) dipped below $2,300 on Friday as sellers drove it down to a low of $2,150, raising concerns among market observers about a potential collapse below $2,100. ETH has faced ongoing struggles, with spot Ethereum ETFs also performing poorly. ETH ETFs recorded net outflows of over $91 million last week, marking the fourth consecutive week in the red. Grayscale's ETHE reported outflows of $10.70 million, adding to the cumulative negative flow of $2.67 billion. BlackRock's ETHA was the only Ethereum ETF to report an inflow of $4.72 million on the final trading day.

ETH fell below $2,500 on Tuesday as bulls failed to sustain upward momentum above the 20-day SMA. Sellers attempted to push the price below $2,300 on Wednesday, resulting in a low of $2,310. However, strong demand at this level enabled ETH to recover, ultimately registering an increase of 1.07% to settle at $2,451. ETH failed to break above $2,500 and fell back into the red on Thursday, dropping