Maintaining Key Trendlines: A Focus on Bitcoin
In last week’s analysis, we emphasized the critical importance of maintaining key trendlines to sustain Bitcoin’s upward momentum. As noted by our desk, should the trendline fail, the next significant support level identified is $108,000. Despite Bitcoin’s recent price action being weaker than anticipated, the trendline managed to hold as support, in part buoyed by the dovish tone from Fed Chair Powell’s Jackson Hole speech on Friday.
Weekends Bring Bearish Pressure
This led to a subsequent price surge, which appeared more like a short squeeze than a real shift in market momentum. Over the weekend, however, bearish pressure resumed and culminated in a decisive break below the trendline on Monday. As anticipated, Bitcoin then tested the $108,000 support level, and following this confirmed breakdown, the former trendline has flipped to act as resistance.
Ethereum’s Influence and Market Outlook
On Tuesday, a modest rebound occurred, largely attributed to Ethereum’s solid performance following a bullish tweet from Tom Lee, the chairman of Bitmine Immersion Technologies. With Bitmine holding substantial corporate treasury of Ethereum, their aggressive accumulation has spurred renewed market enthusiasm for ETH. Moreover, significant withdrawals from centralized exchanges indicate strong institutional demand, further tightening ETH’s circulating supply.
While Solana’s performance remains robust, benefiting from corporate treasury strategies, our outlook is conservative, expecting underperformance compared to Ethereum. The absence of a dedicated ETF venue for Solana may lead to muted price momentum. In conclusion, while we anticipate Bitcoin to navigate sideways trading in the coming weeks, upcoming PCE inflation data could significantly influence the crypto market’s direction next month.
