The cryptocurrency markets continued to drop for the second day in a row, with major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), firmly entrenched in the red. BTC slumped to a low of $60,031 before recovering and is currently trading around the $61,300 mark. ETH also remained bearish and has slipped below $2,400 after registering a drop of almost 4% over the past 24 hours.
Other major cryptocurrencies, including Solana (SOL), Ripple (XRP), Dogecoin (DOGE), Toncoin (TON), and Polkadot (DOT), also started the day firmly rooted in the red. The crypto market cap has declined further and is down by 1.19% at $2.14 trillion.
Bitcoin (BTC) In The Red As West Asia Tensions Mount
Bitcoin (BTC) is down almost 5% as the deepening Middle East crisis led to markets being extremely cautious. BTC fell as low as $60,030 during today’s trading session, as October starts on a highly bearish note for the world’s largest cryptocurrency. However, some analysts, such as Sean McNulty, director of trading at liquidity provider Arbelos Markets, believe the selloff is a momentary setback thanks to geopolitical conditions. He also states that BTC is still bullish in the long run, with the Federal Reserve set to cut interest rates further.
“The seasonal trend of October being the best month for Bitcoin is alive and well.”
However, markets remain extremely cautious for the moment, given the global situation.
Middle East Tensions Hitting BTC Harder Than Traditional Markets
QCP Capital, in a recent market analysis, stated that the impact of current geopolitical tensions is hitting Bitcoin (BTC) and other cryptocurrencies much harder than traditional markets. Despite the escalating Middle East situation, traditional markets like the S&P 500 index closed only 1% lower, while the West Texas Intermediate (WTI) crude oil prices registered an increase of 2%. QCP analysts noted that the crypto markets experienced greater volatility in the same period, with BTC registering a substantial 4% drop. The decline halted only because it found support at the $60,000 mark.
If the situation escalates to a regional war, BTC could drop to $55,000 or even lower.
“We seem to have found some support at the $60K level, but further escalation could push us much lower, possibly to the $55K level.”
QCP also discussed China’s current economic situation, comparing it to Japan’s deflationary period of the 1990s. They also pointed out several similarities in policy measures, including rate cuts and quantitative easing programs introduced by the People’s Bank of China.
Additionally, BTC is also witnessing intense selling pressure from some whales. According to Whale Alert, one whale moved 3,333 BTC worth approximately $213 million to Coinbase. The transfer could mean the whale is looking to sell the coins and book profits. Such large transactions could create significant short-term market pressure and come when traders expect more gains during October.
SEC Appeals Court Ruling
The United States Securities and Exchange Commission has announced that it is appealing a court ruling restricting its ability to regulate the cryptocurrency markets. The regulator will file an appeal in the 2nd US Circuit Court of Appeals in Manhattan to review a July 2023 ruling that the XRP token sold by Ripple Labs did not meet the legal definition of a security. The decision, made by US District Judge Analisa Torres, meant the sales of the XRP token, worth $757 million, were not subject to investor protection laws enforced by the SEC.
If the appeals court agrees with the initial decision, it could hinder the SEC’s ability to police exchanges such as Coinbase and other defendants selling to market makers for newer, non-traditional financial products. Meanwhile, the SEC’s enforcement chief, Gurbir S. Grewal, has stepped down from his role and will leave the agency in the coming week. During his tenure, Grewal led several high-profile enforcement actions in the crypto sector, helping target non-compliant platforms and entities and insider trading.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is looking to push higher during the ongoing session after finding support at $60,000. The world’s largest cryptocurrency has endured a highly bearish week as markets panicked following the escalating situation in the Middle East, with investors making a beeline for safe-haven assets. The negative sentiment comes when investors were expecting a strong start to what is generally considered to be one of the strongest months for the asset. According to Chris Kline, the Chief Operating Officer and co-founder of Bitcoin IRA stated,
“Surging unrest in the Middle East has propelled oil prices upwards and reinforced the Dollar’s strength, casting a shadow over Bitcoin and other speculative investments. In stark contrast to September’s stronger-than anticipated performance for BTC, October looms as a potential rollercoaster, influenced by the delayed effects of last spring’s halving event, and the approach of a highly divisive American electoral contest.”
As we can see in the price chart, BTC’s recovery peaked on Friday when it reached a day high of $66,517. However, with sellers active at this level, it lost momentum over the weekend, registering only a marginal increase on Saturday after experiencing significant volatility. BTC fell back in the red on Sunday, registering a drop of 0.35% and ending the weekend on a bearish note. Selling pressure intensified on Monday as BTC slipped below the 200-day SMA and $65,000 after a drop of 3.46% and settled at $63,365. Markets remained bearish on Tuesday as geopolitical tensions in the Middle East escalated. As a result, BTC dropped by almost 4% to $60.874, but not before reaching a day low of $60,205.
Source: TradingView
BTC faced a tremendous amount of volatility on Wednesday after it fell to a low of $60,030. BTC has strong support at $60,000, thanks to which it rebounded and surged to a day high of $62,455. However, buyers lost momentum thanks to strong resistance at the 20-day SMA. As a result, BTC fell back, registering a drop of 0.33% and settling at $60,670. The current session sees BTC up by 1.18% after finding support at the $60,000 level and is currently trading around the $61,400 mark.
Despite the current scenario, BTC whales are accumulating the asset at an unprecedented rate. Meanwhile, outflows from spot Bitcoin ETFs continued, with Wednesday registering almost $92 million in outflows. Buyers will look to push BTC back above the 20-day SMA and look for a move to $65,000 to materialize. On the other hand, sellers will look to drive BTC below $60,000. Should this level be breached, BTC could drop to $55,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has significantly dropped this week, slipping below key support levels and the 20 and 50-day SMAs. ETH turned bearish over the weekend, dropping by 0.73% on Saturday and 0.67% on Sunday to settle at $2,659. Bearish sentiment persisted as the current week began, with ETH dropping by 2.11% on Monday to settle at $2,603. Buyers attempted a recovery on Tuesday, but with overall unfavorable market conditions, ETH slumped by almost 6%, slipping below $2,500 and the 20 and 50-day SMAs to settle at $2,448.
Source: TradingView
Buyers attempted to push back above $2,500 on Wednesday as ETH reached a day high of $2,499. However, selling pressure prevented a move past $2,500, and sellers took control, driving ETH below the crucial $2,400 level. ETH eventually settled at $2,365 after registering a decline of 3.40%. The current session sees the price marginally up as buyers look to reclaim $2,400. In the short term, ETH must reclaim $2,400 to prevent a further decline. Should it fail to do so, the price could drop to $2,200 or lower. If ETH manages to push above $2,400, its next target will be $2,500. A push above these levels and the 20 and 50-day moving averages would indicate that buyers still have skin in the game and have yet to completely be overwhelmed by recent selling pressure.
Amid increasing volatility, a price decline, and spot Bitcoin ETFs registering significant outflows, ETH ETFs have shown resilience, registering inflows of $14.45 million.
Solana (SOL) Price Analysis
Solana (SOL) is looking to reverse its recent decline as markets slowly recover after three days of significant losses. SOL will look to build momentum and reclaim the $150 level. SOL was quite bullish the previous week, but momentum began waning over the weekend. With strong resistance at $160, SOL fell back on Saturday, dropping to $156 after a marginal decline. SOL did recover on Sunday, making an unsuccessful attempt to push above $160 before eventually ending the week at $158 after an increase of 1.10%.
Source: TradingView
Sentiment changed on Monday as SOL started the new week on a bearish note, dropping almost 4% to slip below the 200-day SMA and settle at $152. With adverse market conditions prevailing on Tuesday, SOL dropped nearly 5%, falling below $150 and settling at $145. Buyers attempted a recovery on Wednesday as SOL reached a day high of $148. However, bulls lost momentum, allowing sellers to retake control. As a result, SOL dropped by 3.44%, going below the 50-day SMA, and settled at $140. The current session has seen bearish sentiment persist, with SOL slipping below the $140 level and trading around $138. Should sellers continue to dominate the session, SOL could drop to $130. On the other hand, buyers will look to initiate a recovery and push SOL back above $140.
Toncoin (TON) Price Analysis
Toncoin (TON) has been extremely bearish since the weekend after its recent recovery peaked on Friday when it reached a day high of $5.81, as buyers attempted a push to $6. However, buyers lost steam with the 200-day SMA coming into play as a dynamic level of resistance. TON fell into bearish territory on Saturday, dropping by 1.47% on Saturday and a further 1% on Sunday to end the weekend at $5.84. The current week began with sellers still in control as TON dropped by just over 2% to slip below the 50-day SMA and settle at $5.71.
Source: TradingView
Selling pressure intensified on Tuesday, with TON dropping by 6.10%, slipping below the 50-day SMA, and the $5.50 support level settling at $5.36. Markets also remained in the red on Wednesday, with the price dropping by 1.06% to $5.30. Buyers did attempt a recovery but were unsuccessful, with sellers pushing TON back down after it reached a day high of $5.50. The current session sees TON still firmly rooted in the red, down almost 2% and trading around the $5.20 mark. Should buyers continue to hold sway, TON could drop to $5, a level that could attract buyers and allow the price to recover.
Uniswap (UNI) Price Analysis
Uniswap (UNI) ’s surge towards $8 was halted over the weekend as it fell into the red on Saturday after encountering significant volatility as buyers and sellers sought to overwhelm each other. Ultimately, UNI registered a marginal drop and settled at $7.61. Bears continued to dominate the session on Sunday, with UNI registering a drop of 1.98%, slipping below $7.50 and settling at $7.46. The current week began with volatility persisting as buyers attempted a recovery. As a result, UNI climbed to a day high of $7.74 before sellers pushed the price back down by 0.81% to $7.39.
Source: TradingView
UNI made yet another attempt to push above $8 on Tuesday, but with market conditions turning bearish, sellers were able to push UNI down yet again. This time, it fell by almost 7%, slipping below the 20-day SMA to $6.90. This drop also resulted in UNI slipping below $7 for the first time since the beginning of September. Volatility and bearish sentiment also persisted on Wednesday, as UNI dropped by 3.28% to $6.67. The current session has seen selling pressure intensify as markets drop again, with UNI slipping below the $6.50 support level. The price is currently down by almost 4% at $6.42. With sellers continuing to dominate, UNI could drop to $6 or further to the $5.50 support level.
Aptos (APT) Price Analysis
Aptos (APT) has defied current market trends, substantially increasing over the past couple of sessions. However, it is facing significant volatility, as can be seen in the price chart. APT reached a recent high of $8.58 on Friday, but with the 200-day SMA coming into play as a dynamic level of resistance, it fell back in the red over the weekend, dropping almost 5% on Saturday. A marginal increase on Sunday meant APT ended the weekend on a positive note. However, sellers returned to the market on Monday as APT fell over 5% and settled at $5.67.
Source: TradingView
The altcoin faced unprecedented volatility on Tuesday as adverse market conditions significantly impacted the price, reaching a day high of $8.37 and a day low of $7.24 before settling at $7.56 after a decline of 1.45%. APT was able to rebound from this level thanks to the 20-day SMA acting as a dynamic level of support. As a result, it registered an increase of just over 3% on Wednesday and settled at $7.79. The current session sees APT up by 3.09% as it looks to push above the 200-day SMA and the $8.50 price level.
Optimism (OP) Price Analysis
Optimism (OP) has had an incredibly bearish week, with the altcoin giving up almost all the gains made last week. After surging to $1.90, OP’s momentum stalled as it dropped by 1.02% on Saturday and settled at $1.88. The price recovered on Sunday, registering an increase of 1% to end the weekend on a positive note at $1.90. However, sellers took control as the week began, and OP tanked by almost 8%, dropping to $1.75. Buyers attempted a recovery on Tuesday as OP reached a day high of $1.87. However, with the crypto markets turning bearish, OP fell back, eventually settling at $1.66 after a drop of just over 5%.
Source: TradingView
OP slipped below the 20-day SMA on Wednesday, dropping by almost 5% and settling at $1.58. The current session sees the price down by 2.27% at $1.55. OP has support at $1.50, with the 50-day SMA also acting as a dynamic level of support. Buyers must keep OP above these levels for any chance of a reversal. Should buyers regain control, OP will look to push back above the 20-day SMA.
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.
