As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless market cycles and learned to read between the lines of price movements and investor sentiment. This week’s Bitcoin (BTC) rally to $65,000 was no exception, with the digital asset exhibiting signs of profit-taking but maintaining a bullish outlook due to increased inflows in investment products. The uptrend is expected to continue, provided that the key support at $64,000 holds.
After a busy week with significant fluctuations, Bitcoin (BTC) price showed stability. This stability followed swift market surges. Even though there were clear indications of investors cashing out, a strong foundation is anticipated to reinforce Bitcoin’s upward trajectory, particularly after a substantial increase in assets under management inflows. Investors in Solana are concentrating on maintaining the $160 level as a defensive measure, hoping to rekindle the push towards an extended rally to $180.
Bitcoin Price Takes A Breather, Uptrend To Continue
Bitcoin price reached $65,000 amidst last week’s broadband bullish momentum triggered by global markets’ embracing the Fed’s Chair, Jerome Powell’s speech at the Jackson Hole meeting in Wyoming. Both small and large-cap altcoins responded positively, with Ethereum reaching $2,820, Solana at $162, and Ripple (XRP) at $0.63.
In my latest research findings, I’ve observed a significant surge in investments towards digital asset products, totaling approximately $533 million. This is the highest inflow we’ve seen in five weeks, indicating a growing interest among investors. Interestingly, the data suggests that Bitcoin was the primary focus, attracting inflows amounting to an impressive $543 million. This high investment could be linked to anticipation surrounding interest rate expectations, underscoring Bitcoin’s sensitivity to such market factors.
Last Friday, a total of $252 million flowed into Bitcoin ETFs, according to SoSoValue data. The combined trading volume for all 11 products exceeded $3.12 billion. BlackRock’s IBIT led the pack with a trading volume of $1.2 billion and net inflows of $83 million. Fidelity’s FBTC followed closely behind with $64 million in net inflows, while Bitwise’s BITB took third place with $42 million. Grayscale’s GBTC was the only product that saw outflows, recording a net decrease of $35 million, but its mini Bitcoin fund managed to attract $50 million in investments.
The price of Bitcoin was holding steady around $63,722, which was slightly higher than its 20-day Exponential Moving Average (EMA) of $63,386 and less than the opening price of the previous day ($64,225). If this level does not hold as a support, Bitcoin might begin to erase some of the gains it made last week.
Traders are seeking for Bitcoin (BTC) to bounce back over $64,000 so they can boost their long positions, with expectations that it will reach $70,000 by the end of this week. The growth in digital investment products could speed up the upward trend as investor confidence strengthens.
According to previous Bitcoin price forecasts, a drop below the 20-day Exponential Moving Average (EMA) could trigger a significant sell-off, potentially reaching around $62,000 or the 20-day EMA. If investor panic ensues and there is a large-scale sell-off, the decline might extend to approximately $60,000.
Solana Price Analysis: What’s Next As SOL Retests $160
On Friday and over the weekend, the price of Solana rapidly rose from approximately $140 to $162, mirroring the surge in overall crypto prices. Data from Coinglass indicates a significant increase in short position liquidations, amounting to around $2.24 million within a 24-hour period and $682k specifically on Monday. Additionally, over $1 million worth of long positions were liquidated in the last 24 hours, with an additional $766k being liquidated on that particular day.
In simpler terms, the cryptocurrency token that’s well-known for its significant price fluctuations is trying to find support at $160 right now. Some experts are predicting a potential rise to $164, which could mark the end of an upward trend and represent a 14% breakout from the falling wedge pattern, taking it to $164.
Looking ahead, a potential intersection of the 50-day Exponential Moving Average (EMA) and 200-day EMA could prompt traders to concentrate on taking long positions, as this event, known as a “golden cross,” indicates that the price of Solana (SOL) might be building up speed and could potentially keep climbing.
If Solana’s price closes daily below the $160 support level, it could lead to a more significant correction. The predicted price for Solana is around $155, close to its 20-day moving average. The Relative Strength Index (RSI) is once again in the neutral zone and is trending towards the middle (50), which might encourage traders to consider selling SOL with the aim of buying it back at lower prices, such as $150 and $140.
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2024-08-26 17:58