Although Bitcoin and altcoins started the new week well yesterday, they experienced a sharp decline in the last 24 hours due to selling pressure from Asian markets and growing fears about a Fed interest rate hike.
While Bitcoin and Ethereum are under pressure at this point, their prices remain above their 50-day moving averages. According to one analyst, this is seen as a sign of an uptrend, but the overall market and other altcoins don’t have the same chance.
Market analyst Omkar Godbole noted that while Bitcoin and Ethereum are trading above their 50-day simple moving averages, only 29 of the top 100 cryptocurrencies by market capitalization are trading above their 50-day averages. This suggests a general bearish trend for the market.
According to the analyst, the 50-day simple moving average (SMA) is widely followed as a short-term trend indicator. And when the price breaks above this level, it is considered a sign that bullish momentum is forming.
However, the analyst noted that while BTC has stabilized after falling below $58,000, overall investor sentiment towards altcoins remains weak. Nevertheless, according to the analyst, there is still hope for altcoins.
At this point, the analyst, referring to Ethereum, the largest altcoin, having recently outperformed Bitcoin, said that this increases the likelihood that other altcoins will also see strong demand soon.
Finally, the analyst noted that the market is closely watching the Fed’s interest rate decision, which will be announced in September.
Matthew Ryan, Head of Market Strategy at Ivery, commented on this, saying, “Since the possibility of a September interest rate hike is already priced into the futures market, a hawkish shock that would significantly strengthen the dollar is unlikely.” This also means that a sharp drop in BTC is unlikely, as BTC and the Dollar Index (DXY) are inversely proportional.
*This is not investment advice.
