On Friday, the US personal consumption expenditures (PCE) index for July was in line with economists' expectations, further strengthening investors' expectations of a rate cut at the September FOMC meeting, and financial markets fluctuated slightly.
According to Bitpush data, after the release of the inflation report, Bitcoin climbed to an intraday high of $59,945, and then experienced a sharp correction, falling to an intraday low of $57,704. The bulls then pushed it back above the support level of $59,000. As of press time, BTC was trading at $59,036.66, down about 0.9% in 24 hours.
Most altcoins are in the red this week, with Sun (SUN) continuing to lead the way, up 13.9% on Friday, Beam (BEAM) up 6.5%, and Just (JUST) up 5.5%. Popcat (POPCAT) was the biggest loser, down 15.3%, followed by BinaryX (BNX) and Klaytn (KLAY), down 12.4% and 10%, respectively.
The current overall market value of cryptocurrencies is $2.07 trillion, and Bitcoin’s market share is 56.2%.
Bitcoin's average return in September was -4.78%
Bitcoin prices remain below the psychological $60,000 mark after falling more than 10.7% on the monthly chart, with analysts believing that in order to close August in profit, Bitcoin would need to see a monthly close above $64,300, which currently appears unlikely to be achieved.
Bitfinex analysts warned that the lack of liquidity during the summer could continue into September, making it difficult for Bitcoin to break through the $63,900 resistance level: “Prices are a reflection of historical market trading, and we have to look deeper. BTC once rose to the realized price of short-term holders (about $63,900), so we also saw some profit-taking by the STH (short-term holder) group.”
The analyst added that since 2013, Bitcoin’s average return in September has been -4.78%.
Declining trading volumes
Total Bitcoin trading volume on exchanges has been falling since the spot ETF approval boom hit all-time highs. CryptoQuant analysts said apparent demand indicators for Bitcoin have "slowed significantly."
According to CryptoQuant, apparent demand is the difference between the total daily Bitcoin block subsidy and the daily change in the number of Bitcoins that remain stable for a year or more.
“Demand has fallen from a 30-day increase of 496,000 BTC (the highest level since January 2021) to negative 36,000 currently,” the analysts said. “As demand slowed, prices fell from around $70,000 to a low of $49,000.”
In this week’s The Week Onchain newsletter, Glassnode analysts concluded that Bitcoin’s momentum is fading as the market has been in a “structurally orderly downtrend” for the past 5 months. Among other factors, analysts noted that the market’s appetite for leveraged positions is waning, while the excitement surrounding the launch of spot Bitcoin ETFs and BTC’s record high of over $73,000 is fading. The remaining catalysts for the upside (such as participants’ hopes that Trump will win the election, spot BTC and ETH ETF inflows have resumed strong, and the Fed has restarted quantitative easing) have yet to materialize or arrive.
“After showing bullish momentum last week, Bitcoin fell sharply below the $64,500 level at the beginning of this week,” analysts at Secure Digital Markets noted in a report. “BTC price began a sharp 10% decline on Monday afternoon as significant selling pressure emerged after the market failed to maintain the $64,000 support level. This decline suggests that Bitcoin price may continue to fluctuate within the descending parallel channel shown on the daily chart.”
“BTC price is currently located in the middle of the channel at $58,440, but if selling pressure persists and $58,000 is tested again, the price could fall further to $54,000,” the analyst warned.
Author: BitpushNews Mary Liu
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