Bitcoin
Solana’s Sol (Sol) and Dogecoin
While weaker employment data has raised expectations for easing, tariff-driven inflation remains sticky and risky assets are underwhelming.
“The Fed faces difficult balancing acts,” said Nick Ruck, director of LVRG Research.
My emotions deteriorated rapidly. After printing just six days ago, the fear and greedy index plummeted to 44. The slides reflect Bitcoin price action. This fell briefly to $112,500 earlier this week, and then we were able to find support near the annual low.
A break below $108,000 could open the door to $100,000, some traders warn.
“Bitcoin fell to $112,500am and received temporary support when we were exposed to recent low regions at the beginning of the month, while sales increased after falling below the 50-day moving average.
“Now, all attention is focused on whether there is a pullback to a potentially strong support area of nearly $108,000. Without support, it paves the way for $100,000,” he pointed out.
“The crypto market lost momentum faster than the Nasdaq 100 stocks and regained its reputation as a more sensitive indicator of investor sentiment,” Kuptsikevich added.
On-chain data also refers to vulnerabilities. Cryptoquant reported that short-term Bitcoin holders are selling at loss for the first time since January.
Santiment flagged lower trading volumes compared to July, despite new highs in August, along with a surge in retail activity.
Therefore, some researchers argue that recent gatherings in Bitcoin are more about currency debilitating than true influx.
“The recent records for Bitcoin may be the result of dollar depreciation rather than reflecting actual value growth,” a Presto Research report said earlier this week. “This calculation will result in the BTC rate below the peak in 2021 and post-election levels in 2024.”
Traders are preparing for volatility as Powell’s Jackson Hole comments frame the September meeting. Dovish Tilt could trigger a relief rally across the crypto market, but reluctance to rate reductions risks the slides to $100,000.
