Following last weekend’s fall, cryptocurrency markets have been trading sideways this week. Although significant digital assets like BTC and ETH continue to enjoy strong support, the global crypto market is below the $1 trillion threshold, indicating that the bears are still in charge.
Summary
- As long as BTC and ETH maintain support, cryptocurrency markets will continue to move sideways.
- The month of September has historically been sluggish for cryptocurrencies, and the outlook for Bitcoin is gloomy.
- Although the merging of Ethereum could spark a bullish run in the next month, major growth for ETH is improbable without assistance from BTC, The King of the Market.
- The market is experiencing its deepest level of panic since July.
- The fact that the global cryptocurrency market is still under $1 trillion shows that the bears are still in charge.
Crypto Markets Update
The BTC and ETH markets have had a difficult time in August, with Bitcoin failing to maintain support above the $24,000 range and Ethereum prices stalling after reaching a high of $1,900.
Bitcoin is still experiencing bearish momentum, and according to a recent report from Yahoo Finance, BTCUSD is “just barely hanging on” before a historically dismal September.
The good news is that, especially if the world economy recovers, Bitcoin may reach its low in September. However, last week, Jerome Powell’s most recent address at Jackson Hall signaled that the Fed would keep raising interest rates to stop inflation and jump-start the economy, making a recovery in September doubtful.
Ethereum May Not Stage A Recovery / Bitcoin Still Tracks Stock’s Bearish Moves
While the planned Ethereum merger in September may give ETHUSD some optimistic support, the second-largest cryptocurrency still closely tracks Bitcoin’s market moves. Because of this, it will be challenging for Ethereum to show sustained bullish momentum without Bitcoin’s backing.
About interconnected markets, the price movement of Bitcoin continues to track that of regular stock markets. This week’s stock market performance has been particularly gloomy, with the S&P 500 down 4% during the previous five days, the NASDAQ down 3.88%, and the Dow Jones down 3.85%.
Even while the situation may appear dire, the current prices offer a great chance to Dollar-cost average your long-term assets in preparation for the upcoming bull run.
Final Thoughts
The current level of the Bitcoin fear and greed index on alternative.me is 23. The market is experiencing the greatest level of panic this month.
The ideal time to buy is during times of extreme fear, even as many traders fear an additional correction is imminent. The market was previously this fearful in July when Bitcoin prices fell from a peak of $30k to a low of $19k the previous month.
Overall, the global cryptocurrency market is still under the $1 Trillion market capitalization mark, indicating there’s still no actual reason for any bull run to start, as bears are still in charge of the market.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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