Cryptocurrencies Bitcoin, Ethereum, and XRP Maintain Stance in Dragging 'Red September' Market Start
In the world of cryptocurrencies, September is proving to be a month of mixed fortunes. Bitcoin, Ethereum, and XRP prices are holding relatively steady at the start of the month, but various indicators suggest potential shifts in the market.
Let's start with Bitcoin. The digital gold has shown resilience with a 0.53% gain to $108,842, recovering from an intraday low of $107,270. However, the Relative Strength Index (RSI) for Bitcoin shows that traders are starting to sell their coins faster than usual. The Average Directional Index (ADX) currently stands at 20, indicating no clear trend. Key levels for Bitcoin include immediate support at $105,000 and immediate resistance at $113,000.
Ethereum, on the other hand, has experienced a -0.66% decline to $4,363, but its RSI at 57 is in bullish territory. Ethereum's ADX at 28 indicates a more bullish story than Bitcoin's, crossing above the crucial 25 threshold. Key levels for Ethereum include immediate support at $4,360, strong support at $4,000, immediate resistance at $4,490, and strong resistance at $4,500.
Ethereum briefly spiked to $4,490.97, but failed to hold gains, a sign that Ethereum's bulls are struggling against resistance. The bullish EMA alignment provides structural support for Ethereum, suggesting that a potential rebound could be on the horizon.
Myriad traders believe that XRP drops to $2.50 before it ever reaches $4 per coin, placing those odds at 78%. XRP has a -0.5% decline to $2.76, and its ADX at 19 is the weakest among the three top cryptocurrencies. Key levels for XRP include immediate support at $2.70, strong support at $2.50, immediate resistance at $2.85, and strong resistance at $3.00.
The Federal Reserve's September 16-17 policy meeting may be one of the most contentious in years. At the time, the probability that the Federal Reserve will cut rates by 0.25% was about 85.7% based on the weak US labor market data and market expectations. Markets imply an 87% chance of a 0.25% cut during the meeting.
Inflation remains above the Fed's target with core CPI at 3.1%. This could potentially impact the cryptocurrency market, as central banks around the world grapple with inflationary pressures.
The Crypto Fear and Greed Index has dropped into the "fear" zone, falling from 75 to 46 since mid-August. This indicates that investors are becoming more cautious in their approach to cryptocurrencies.
Looking ahead, Myriad traders place the odds at 77% that ETH continues its upward trajectory and hits $5,000 before the end of the year. However, the historically volatile September could present challenges for all three cryptocurrencies. The S&P 500 futures are pointing to a positive open on Tuesday after Friday's volatility, suggesting a potentially positive start to the week for traditional markets.
As always, it's essential to approach the cryptocurrency market with caution and a well-informed strategy. Stay tuned for further updates as the market continues to evolve.
