News

Sideways Trading for Bitcoin and Ethereum Continues as Global Crypto Market Remains Below $1 Trillion

Cryptocurrency markets continue to trade sideways this week after last weekend’s correction. While support for major digital assets like BTC and ETH holds, the global crypto market remains below the $1 trillion range, suggesting that the bears are still in control.

Key Points:

  • Cryptocurrency markets continue to trade sideways as BTC and ETH hold support
  • September is a historically weak month for crypto, and next month’s outlook for Bitcoin is bearish.
  • Ethereum’s merge could fuel a bullish run next month, but without BTC’s support, significant growth for ETH is unlikely.
  • The market is in extreme fear, the lowest it has been since July.
  • The global crypto market remains below $1 trillion, signifying that the bears are still in control.

August has been a weak month for BTC and ETH markets, as Bitcoin failed to hold support at the $24k range and Ethereum prices stalled after peaking at $1,900.

Bitcoin continues to struggle with bearish momentum, and a Yahoo Finance report today claims that BTCUSD is “just barely hanging on” ahead of a historically weak September.

The good news is that Bitcoin could hit its bottom in September, especially if the global economy rebounds. At the same time, recovery in September could be unlikely since Jerome Powell’s latest speech at Jackson Hall last week suggested that the Fed will continue to raise interest rates in an attempt to curb inflation and restart the economy.

When it comes to Ethereum prices, while the upcoming merge in September will provide some bullish support for ETHUSD, the second-largest crypto asset still follows Bitcoin’s market movements. As such, it will be rather difficult for Ethereum to exhibit significant bullish momentum without Bitcoin’s support.

Speaking of markets that are related to each other, Bitcoin continues to follow traditional stock markets’ price action. Looking at the performance of stock markets this week, it’s quite bearish, with the S&P 500 down 4% in the past five days, NASDAQ is down 3.88%, and the Dow Jones is down 3.85%.

Related Post

While the situation may seem gloomy, current prices also provide an excellent opportunity to Dollar-cost average your long-term investments for the next bull run. While it may take until December or January to see any substantial gains, current low prices hold support relatively well. The chances that crypto markets show another significant correction are relatively low.

Looking at alternative.me’s Bitcoin fear and greed index; the current level is at 23. The market is in extreme fear, the highest it has been all month.

While many traders fear further corrections, the best time to buy is during extreme fear. The last time the market was in such extreme fear was back in July when Bitcoin’s prices dipped from a high of $30k to a low of $19k the month prior.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: igorigorevich/123RF // Image Effects by Colorcinch

Mark Arguinbaev

I'm a 29 year old cryptocurrency entrepreneur. I was introduced to Bitcoin in 2013 and have been involved with it ever since. Fun Fact: I mined cryptocurrency using my college dorm room's free electricity.

Share
Published by
Mark Arguinbaev

Recent Posts

$ELIZA Token Launch Marred By Insider Trading Allegations

The launch of $ELIZA, a token introduced by Andreessen Horowitz (a16z) partner @shawmakesmagic, has sparked…

2 mins ago

Cardano’s Rally Highlights Diverging Moves Among Investors

Cardano ($ADA) has been making waves in the crypto market, breaking away from the altcoin…

5 mins ago

Real-World Asset Tokenization: Bridging Traditional Finance And DeFi

The rise of real-world asset (RWA) tokenization is reshaping the decentralized finance (DeFi) landscape, creating…

9 mins ago

Meme Coins Soar as Market Hits New Highs

The meme coin market is experiencing a remarkable resurgence, surging 84% in value and capturing…

14 mins ago

Bitcoin Smashes New ATHs Amid Surging Capital Inflows And Whale Activity

Bitcoin continues its meteoric rise, repeatedly breaking all-time highs (ATHs) as it attracts massive inflows…

16 mins ago

Ethereum Faces Challenges But Retains Long-Term Potential Amid Growing Institutional Interest

Despite Ethereum's ($ETH) recent underperformance against Bitcoin ($BTC), many ETH holders continue to endure unrealized…

23 mins ago