Crypto Price Analysis 8-22 BTC, ETH, SOL, TRX, DOT, SEI, MATIC

The cryptocurrency markets rallied after the release of the FOMC minutes. The July meeting minutes indicated that a rate will happen in September. Bitcoin (BTC) briefly climbed to $61,800 but struggled to maintain this level, quickly below the $61,000 price level. 

Since dropping below $61,000, buyers have propped up the BTC price, and spot Bitcoin ETFs have registered considerable inflows. According to data from Farside, spot Bitcoin ETFs have seen only two days of outflows, suggesting that investors view the current scenario as a buying opportunity for long-term investments. 

Crypto Rallies After FOMC Meeting 

Bitcoin (BTC) and other cryptocurrencies rallied briefly on Wednesday following the release of the FOMC meeting minutes. The minutes indicated that the Federal Reserve could cut interest rates by 25 basis points in September. Participants in the meeting agreed that the US had made considerable progress in reducing inflation, which could drop to the intended 2% target. They also agreed that reducing inflation and rising unemployment rates have provided a reasonable cause to cut rates by 25 basis points. 

Following the release of the meeting minutes, the crypto markets saw a brief yet significant rally, noting a jump in market capitalization. BTC, struggling around the $59,000 mark, jumped above the $60,000 mark and went as high as $61,800. ETH also reported an increase of just over 1%. Other major cryptocurrencies that registered a notable jump include XRP (1.20%), ADA (2.70%), Shiba Inu (2.84), LINK (9.50%), and DOT (1.58%). The jump in crypto markets also led to increased derivatives liquidations, with short traders witnessing over $31 million in liquidations. 

Mt.Gox Makes Another Transfer, Crypto Unmoved 

Mt.Gox made yet another significant transfer, moving 13,265 BTC to a new cold storage address. This marked the defunct crypto exchange’s first major on-chain activity since late July. According to data from Arkham Intelligence, a Mt. Gox-associated address moved 12,000 BTC, valued at around $709 million, to an empty wallet. The remaining 1265 BTC, valued at $75 million, was transferred to a wallet labeled as a Mt.Gox cold wallet. The movement of funds sparked speculation about another round of redistribution to creditors. However, Alex Thorne, the head of research at Galaxy Digital, has suggested the impact of the move on markets will be minuscule.

“We now think that of the 13,265 BTC moved in this tx, only 1,265 ($74.5 million) is meant to distro, w/ 12,000 going to estate fresh cold storage, so, very small.” 

BTC has remained relatively stable following the move, with the price jumping over $60,000 following recent market developments. This is in sharp contrast with previous instances of Mt. Gox moving funds, which created considerable selling pressure in the market and substantially impacted BTC’s price. Mt. Gox last made a substantial transfer of BTC on July 30, when it moved 47,229 BTC to three unknown wallets. At the time, Arkham Intelligence stated it suspected that around 33,000 BTC had been sent to an account held by BitGo, which is working with the Mt. Gox custodian to refund the platform creditors. Creditors who have been refunded have chosen to hold on to their BTC rather than sell them in the market. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) registered a sharp jump on Wednesday following the release of the FOMC meeting minutes, which hinted at a rate cut in September, boosting markets. BTC briefly climbed above $61,000, but with strong selling pressure at higher levels, it could not stay above $61,000, quickly dipping back below $61,500. BTC has consistently struggled to climb above the moving averages, which have acted as a dynamic level of resistance, allowing sellers to dominate higher levels, as can be seen in the price chart. 

BTC recovered from a low of $56,170 last week to reach $59,623 by Saturday. However, with the 20-day SMA acting as resistance, bulls lost momentum, and BTC dropped by almost 2% on Sunday to drop to $58,492. The current week began with BTC registering an increase of 1.73%, bringing the price to $59,501. Buyers attempted a move past $60,000 and the 20-day SMA on Tuesday, pushing BTC to an intra-day high of $61,401. However, the price was rejected at the 50-day SMA, and sellers took control, driving the price back below the 20-day SMA and $60,000 to $59,608. Bulls retook control on Wednesday following the Fed’s dovish stance in the FOMC meeting, as markets registered an uptick.

Source: TradingView

As a result, BTC registered an increase of 3.50% to push above $60,000 and settle at $61,134. However, it was once again unable to move above the 50-day SMA. The current session sees sellers in control. BTC had dropped to a low of $59,715 but buyers propped the price back above $60,000 to its current level of $60,791. BTC faces a significant roadblock around the $62,000 mark, with the 50-day SMA also acting as resistance around $61,500. This is why bulls have failed to mount a successful push above these levels, with growing selling pressure at higher levels continuously driving BTC back below $60,000. BTC bulls must break above the 50-day SMA and the $62,000 price level for sustained bullish momentum to take hold. This could lead to a potential move to the 200-day SMA and the $65,000 price level. However, market conditions would need to change significantly for such a move to materialize. Until then, BTC will continue to face downward pressure.

Ethereum (ETH) Price Analysis

Ethereum (ETH) has been underperforming for weeks, trading in a narrow range since recovering from the August 5 market collapse. ETH has been primarily trading sideways over the past couple of weeks, with neither buyers nor sellers taking the initiative to drive the price. As a result, ETH has seen less price movement and is struggling to push above the 20-day SMA. ETH has been relatively quiet since a 3.52% drop last Thursday when it fell to $2,569. By the weekend, ETH was around $2,614.

Source: TradingView

The current week began with an increase of 1.01%, which bumped the price to $2,639. However, buyers lost momentum, allowing sellers to retake control on Tuesday. As a result, ETH dropped by 2.44% to $2,574. Strong support at $2,500 allowed ETH to recover on Wednesday, register a 2.21% increase, and move to $2,631. Despite the strong support, ETH struggled to push above the 20-day SMA. The current session sees ETH marginally down as buyers struggle to establish a foothold. 

According to analysts, ETH’s price outlook has been dented by factors such as reduced profits, Layer2 fragmentation, and increased competition from Bitcoin and Solana. The Layer2 fragmentation has given Solana, a monolithic chain, a significant competitive advantage over Ethereum. 

“Profitability has dropped off a cliff post-Dencun, and it doesn’t look like that will change soon. Currently, @l2beat is tracking 71 L2s, 20 L3s, and an incredible 82 upcoming launches. This is substantially degrading UX and becoming a significant barrier to widespread adoption. Meanwhile, SOL has shown the potential of a monolithic chain & ecosystem.”

Sellers will try to strengthen their position by yanking ETH below the $2,500 support level. However, buyers will try to retake control and consolidate above the 20-day SMA. Should this occur, they could attempt a move to the crucial $2,850 level. 

Solana (SOL) Price Analysis 

Solana (SOL) continues to struggle as its bullish momentum fades and bearish sentiment increases. The leading altcoin has consistently struggled to push above the moving averages, keeping it firmly below the $150 level. Should selling pressure intensify, it could jeopardize SOL’s support levels at $140 and $130 as sellers will look to drive the price lower. SOL ended the previous week with a marginal increase on Sunday after sellers thwarted a move towards $150. After reaching an intra-day high of $147, SOL dropped to settle at $142.

Source: TradingView

The current week began with SOL rising to $144 after an increase of 1.35%. Buyers attempted another move to $150 on Tuesday but were thwarted as sellers took control and drove SOL down to $142 after it reached an intra-day high of $148. Sellers attempted to push SOL below $140 on Wednesday, but buyers held firm, countering the selling pressure to push SOL up by 0.33%. The current session sees SOL marginally down as buyers struggle to keep SOL above $140.

So, where does SOL go from here? So far, buyers have defended the $140 level. However, should sellers breach this, SOL could drop to $130. A move above the 20-day SMA is crucial for buyers to reverse this trend. If they can, SOL could test the resistance at $150. The MACD is currently bearish, indicating that the trend around SOL is currently bearish.

Tron (TRX) Price Analysis

Tron (TRX) climbed to a three-year high on Wednesday as its trading volume surged by 139%. The token has seen a jump of over 16% over the past week and had been incredibly bullish at the beginning of the week. However, its recent surge has hit a roadblock over the past couple of sessions. TRX began the week in spectacular fashion, defying the market and registering an increase of 6.19% to settle at $0.143. Bullish sentiment intensified on Tuesday as the token surged by almost 13% to reach a three-year high of $0.161.

Source: TradingView

Buyers attempted to push even higher but lost momentum. As a result, TRX fell back in the red on Wednesday after reaching a day high of $0.166, dropping over 5% to $0.153. The current session sees TRX marginally down after recovering from a low of $0.148 as buyers look to keep the price above $0.50. However, if we look at some technical indicators, it’s clear that such a price drop was expected, and TRX could drop further. The RSI had climbed well into the overbought zone, indicating a correction was on the cards. Once the RSI drops back to acceptable levels, we could see the price recover. With daily trading volume registering a notable increase and strong market interest, the overall sentiment around TRX remains optimistic despite the correction.

Polkadot (DOT) Price Analysis

Polkadot (DOT) ’s steady increase since the weekend has seen the altcoin register a 6.10% increase over the past week. The token is up almost 2% in 24 hours but seems to have hit a roadblock in the current session. DOT has been in the green since Friday, when it registered a marginal increase. DOT remained positive over the weekend as well, rising by 1.86% on Saturday and a further 0.46% on Sunday to settle at $4.39. The current week began with the positive sentiment persisting as DOT rose 2.05% on Monday to settle at $4.48.

Source: TradingView

DOT finally broke past $4.50 on Tuesday as it settled at $4.52 and consolidated its position further on Wednesday, rising by 3.32%, pushing above the 20-day SMA and settling at $4.67. The current session sees expected pushback from sellers as they attempt to push DOT back below the 20-day SMA and $4.50. So, can DOT reclaim $5? Yes, but only if buyers can consolidate above the 20-day SMA and flip the $4.50 level into support. If they can do so, a move to $5 could well be on the cards for DOT. The MACD remains bullish for DOT, indicating that we could see a further increase.

SEI Price Analysis

SEI had gotten off to a relatively quiet start to the week as it struggled to push above the 20-day SMA in the face of growing selling pressure. SEI had been trading in the red since reaching $0.30 on August 12, and by the weekend, it had dropped to $0.26. Sellers attempted to drive SEI below $0,25 on Monday, but buyers held firm, preventing the price from falling further. On Tuesday, SEI attempted to push above the 20-day, but sellers were able to thwart the move. As a result, SEI lost momentum and dropped by 0.98%.

Source: TradingView

Buyers finally broke above the 20-day SMA on Wednesday as SEI recorded an increase of 5.93% to move to $0.28. The current session shows buyers are still in control with SEI, which is up by almost 3%. If SEI can sustain its current momentum, it could test the resistance at $0.30. However, a rejection from this level could cause the price to drop back to $0.25.

Polygon (MATIC) Price Analysis

Polygon (MATIC), which had been trading in an upward trajectory since Friday, has surged this week after finding support around the $0.40 level. MATIC rose by 4.37% on Monday to move to $0.43, settling just below the 20-day SMA. Bullish momentum persisted on Tuesday, with MATIC rising by 7.44% to $0.46. Wednesday saw MATIC post an incredible rally of almost 14% as it surged past $0.50 and the 50-day SMA to settle at $0.52. The current session sees the price up by 0.95% and trading at $0.53.

Source: TradingView

The surge in the price of MATIC comes after Coinbase announced it would support the migration of the Polygon ticker from MATIC to POL on the Polygon network starting August 26. 

“Starting 8/26, we will be migrating the Polygon ticker from MATIC to POL on the Polygon Network. Between 8/26 and 9/10, send/receive will be disabled for MATIC on the Polygon Network in order to successfully complete the ticker change from MATIC to POL.”

The rally is expected to continue, as the RSI indicates the asset is under considerable buying pressure.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.