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Stability Persists: Bitcoin and Ether Face Bearish Outlook from Analysts

Sep 18, 2023 at 10:22 am

During the Asian trading session on Monday, Bitcoin was observed to be trading just below the $26,700 mark, while Ether was changing hands at a price of $1,630. These figures reflected a minor increase of merely 0.5% within the past 24 hours.

Over the preceding weekend, major cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), displayed limited price movements. Both of these cryptocurrencies managed to sustain their positions above key support levels. However, the crypto market appeared to lack any significant catalyst capable of triggering notable price fluctuations. The upcoming decisions on interest rates expected later in the week might potentially exert downward pressure on cryptocurrency prices.

The overall market capitalization for cryptocurrencies exhibited modest growth, expanding by a mere 0.4% within the last 24-hour period, as indicated by data from CoinGecko. Notably, liquidations in the crypto futures market amounted to a relatively low figure of $48 million, marking the lowest level seen since mid-August. In parallel, open interest, which signifies the number of active futures contracts, experienced a 4% increase, suggesting subdued market sentiment.

During this period, Bitcoin maintained its position just below the $26,700 threshold, while Ether was valued at $1,630. This price movement represented a minor increase of 0.5% over the course of the day. The Bitsday Market Index (BMI) also exhibited a modest uptick of 0.3%, reflecting slight gains across alternative cryptocurrencies.

Among the prominent cryptocurrencies, Toncoin (TON) recorded the most significant loss, with a decline of 1% within the past 24 hours. This decrease could be attributed to traders capitalizing on the substantial 40% surge witnessed in the previous week, which followed the announcement by the messaging giant Telegram regarding the integration of a TON-based application on its platform.

Furthermore, certain traders are keeping a close watch on pivotal developments in traditional financial markets, which could potentially have adverse implications for the cryptocurrency landscape.

Simon Peters, a market analyst at the eToro investment platform, remarked, "Market participants should be prepared for heightened volatility in the coming days as we anticipate significant data releases from both the U.K. and U.S., with announcements regarding new interest rate decisions scheduled later this week by the central banks of both countries. Despite a reduction in inflation rates in both economies, indicators suggest that this deceleration may not be fully manifest at this point. Comparable to other assets characterized by higher risk profiles, cryptocurrencies are notably sensitive to interest rate expectations, meaning that any signs of a more hawkish stance could negatively impact investor sentiment."

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