BTC Rebounds as the U.S. Announces Plans to Cut Interest Rates

Week of August 27 - September 2, 2024

Bitwise, a crypto index fund management company, revealed that institutional investors are likely to increase their Bitcoin holdings despite its price volatility. These investors include large hedge funds, asset management firms, and personal investment advisors, and are expected to increase their investments in spot cryptocurrency ETFs.

Arkham Intelligence reported that the government of El Salvador continues to purchase Bitcoin daily at a rate of 1 BTC since March 16 this year, increasing its holdings by 162 BTC. This brings their total to 5,851 BTC, valued at approximately 356.4 million USD.

CryptoQuant disclosed that the volume of Bitcoin transferred to exchanges has decreased following the Black Monday event on August 5. However, selling pressure remains due to Mt. Gox transferring 12,000 BTC to new wallets of creditors. However, data suggests that most creditors still choose to hold onto their bitcoin rather than sell them immediately.

The 2024 Democratic Party policy document, totaling 91 pages, makes no mention of digital asset policies. Meanwhile, investors are concerned that if the Democratic Party wins the election, there might be unfavorable crypto policies, such as the potential appointment of Gary Gensler, the current SEC chairman, as the chairman of the Federal Reserve.

Grayscale Investments launched a new investment fund for the AVAX token of the Avalanche chain, stating it is open only to qualified investors. Currently, Grayscale has a total of 20 funds, specifically investing in various altcoins.

DApp transactions on the Ethereum network have decreased by more than 30% over the past week. Although it remains a leader in terms of Total Value Locked (TVL), DappRadar data shows that none of the top 12 DApps are on the Ethereum network. The chains gaining market share include Solana, Binance, and The Open Network.

The U.S. SEC expressed concerns that Solana might be considered a security, prompting the Cboe BZX to withdraw its application to establish its Spot Solana ETF, pending clearer regulations.

Pavel Durov, CEO of Telegram and The Open Network (TON), was arrested in France on charges of neglecting to moderate the messaging platform, which led to its use in terrorism and money laundering. This news caused the price of the Toncoin (TON) to plummet by more than 20%.

Technical Graph Analysis

Bitcoin (BTC)

BTC is rebounding strongly, buoyed by news of the Federal Reserve's plan to cut interest rates, and is expected to test the resistance level at 70,000 USD. Look for buying opportunities if the price dips, but be cautious if it falls below the support level of 62,000 USD. In the short term, the BTC price needs to surpass the 65,000 USD resistance level to increase the chances of a bullish reversal.

Support: 1,920,000 THB / 62,000 USD
Resistance: 2,520,000 THB / 70,000 USD

Ethereum (ETH)

ETH is moving sideways, due to a lack of new positive factors to drive its price. Inflows to the Spot Ethereum ETFs remain negative. This week, watch the support level at 2,100 USD; if it breaks, consider cutting losses. The price needs to surpass the 3,000 USD resistance to confirm a reversal, potentially reaching the critical resistance at 3,800 USD.

Support: 72,000 THB / 2,100 USD
Resistance: 104,000 THB / 3,000 USD

Fetch.AI (FET)

FET returned 50.16% over the past week, signaling a bullish reversal after reaching a new low. The target resistance is 1.5 USD, which must be surpassed. If the price pulls back, it should not fall below the 1 USD mark to maintain its upward momentum.

Support: 36 THB / 1 USD
Resistance: 56 THB / 1.5 USD

Render (RENDER)

RENDER returned 38.99% last week, showing a strong recovery. Watch out for potential selling pressure that may cause a price dip, which could be a buying opportunity. Watch the initial support at 5.75 USD. If it holds, there is a chance to test the target resistance at 7.275 USD.

Support: 180 THB / 5.75 USD
Resistance: 260 THB / 7.275 USD

Investment Trends

The Federal Reserve Chairman announced at the annual Jackson Hole meeting last weekend that they are ready to adjust monetary policy by cutting interest rates as signs of a labor market slowdown emerge. Any rate cuts will be primarily based on economic data.

The U.S. dollar continues to weaken, even though it was not explicitly stated that a rate cut would occur at the September meeting. However, the market has already factored this in, and the weaker dollar is expected to support the crypto market in the medium to long term.

The second-quarter GDP forecast will be announced on August 29. The figure is expected to grow by 2.8%, up from the previous estimate of 1.4%. If the figure is lower, it may positively support the crypto market.

Memecoins, Artificial Intelligence, and DeFi tokens are starting to outperform the broader market. Look for opportunities to accumulate coins that have successfully reversed from a downtrend to an uptrend in anticipation of a full market recovery, which is expected to begin in September.

References

Disclaimers

Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.

Topics: Beginner Crypto Weekly

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