Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Bitcoin (BTC) experienced a significant downturn on Friday, dropping below $108,000 to its lowest point since July 8, triggering a broader decline across the cryptocurrency market. This movement suggests a weakening hold by bulls, prompting discussions among analysts about the potential for BTC to test the $100,000 mark. Meanwhile, this uncertainty appears to be redirecting investor capital, with Ether (ETH) exchange-traded funds (ETFs) seeing substantial inflows.
Bitcoin’s Recent Downturn and Expert Commentary
Bitcoin’s price fell near $108,100 on Friday, marking a notable low for the asset. Veteran trader Peter Brandt weighed in, stating that BTC would need to climb back above $117,570 to invalidate the recent seven weeks as a potential “double top” formation, indicating a critical resistance level for recovery.
Despite the near-term weakness, network economist Timothy Peterson offered a bullish outlook for BTC’s year-end prospects. Peterson highlighted that Bitcoin has historically risen 70% of the time in the final four months leading up to Christmas, recording an average gain of 44% during these periods.
Investor Shift Towards Ether and Altcoins
The prevailing uncertainty surrounding Bitcoin’s price trajectory appears to be influencing investor behavior, driving a notable shift towards Ether. Data from CoinGlass indicates that since August 21, Ether ETFs have garnered approximately $1.87 billion in inflows, significantly outperforming Bitcoin ETFs, which saw about $350 million during the same period.
Nansen research analyst Nicolai Sondergaard commented on this trend, suggesting that investors are likely taking profits from Bitcoin’s previous upward movements. He noted that these investors are subsequently “moving into other tokens to catch potential upside,” hinting at a rotation into altcoins.
Key Cryptocurrency Price Predictions
Bitcoin (BTC) Price Outlook
Bitcoin began a recovery from $108,666 earlier in the week, but this rebound faltered near the 20-day exponential moving average (EMA) at $113,977 on Thursday. The price then turned sharply downwards on Friday, breaking below the $108,666 support level.
Should the BTC/USDT pair remain below $108,666, it could see a further decline to $105,000, with the psychological support level of $100,000 potentially becoming the next target.
Ether (ETH) Price Outlook
Ether initiated a recovery from its 20-day EMA ($4,378) on Tuesday, but bears managed to halt its ascent at $4,663. The price subsequently reversed course and broke below the 20-day EMA on Friday.
If the ETH/USDT pair closes below the 20-day EMA, its next significant support level could be the breakout point of $4,094.
XRP Price Outlook
The inability of XRP bulls to push the price above the 20-day EMA ($3) in recent days signals strong defensive action from bears at this level. Bears are now expected to intensify their efforts to drive XRP’s price down towards the robust support at $2.73.
BNB Price Outlook
BNB is currently experiencing a fierce struggle between buyers and sellers around the critical breakout level of $861, indicating a period of consolidation and indecision.
Solana (SOL) Price Outlook
Solana saw a rebound from its 20-day EMA ($193) on Tuesday, briefly surpassing the $210 barrier on Thursday. However, sellers capitalized on these higher levels, pulling the price back below $210.
Dogecoin (DOGE) Price Outlook
Dogecoin bounced from the $0.21 support level on Tuesday, but bulls were unable to push the price above the moving averages. The sharp decline from these averages suggests that bears are actively selling into any minor rallies.
Cardano (ADA) Price Outlook
Cardano has turned down from its 20-day EMA ($0.85) and is now approaching the crucial support offered by the 50-day simple moving average (SMA) at $0.82.
Chainlink (LINK) Price Outlook
Chainlink bounced off its 20-day EMA ($23.56) on Thursday, but bulls could not sustain these higher levels. Bears are currently working to strengthen their position by attempting to push the price below the 20-day EMA.
Hyperliquid (HYPE) Price Outlook
Hyperliquid broke above the $49.88 resistance on Wednesday, but bulls failed to maintain these elevated levels. A continued decline that breaks below the uptrend line would invalidate the current positive outlook for HYPE in the near term.
Sui (SUI) Price Outlook
Sui has been trading within a broad range between $3.26 and $4.44 for several days. Repeated retests of a support level often indicate its weakening, suggesting that a potential breakdown could occur if pressure persists.
The cryptocurrency market is navigating a period of heightened volatility, with Bitcoin facing immediate downward pressure and a critical juncture at the $108,000 level. This has spurred a notable rotation of capital into Ether and other altcoins, reflecting a dynamic shift in investor sentiment as market participants seek new opportunities amidst the uncertainty.
