Bitcoin failed to regain the $ 20,000 area, turned sharply lower and closed the week below $ 19,500, the lowest level since the June drop.
Contract futures The S&P 500 was little changed on Sunday night after the major indexes all recorded their worst week since June and the market appeared to be waiting for more signals ahead of the Federal Reserve meeting. ) in this week.
Stocks fell on Friday as investors reacted to a hotter-than-expected inflation report and a somber warning from FedEx that the global economy is in a "worsening" trend. The Dow Jones Industrial Average lost 139 points, while the S&P 500 lost 0.7% and the Nasdaq Composite dropped 0.9%.
Investors are focused on the Fed's two-day meeting, which begins on Tuesday. The central bank is expected to raise interest rates by 0.75 points, while analysts are also keeping an eye on corporate earnings before the next reporting season begins in October.
Apart from the Fed meeting, there are only a handful of economic data releases this week, including August Home Starts Data on Tuesday and Initial Jobless Claims on Thursday.
In addition, Costco, Darden Restaurants, General Mills and Lennar will also release corporate earnings reports.
Meanwhile, shares in the Asia-Pacific were flat on Monday ahead of major central bank meetings this week.
The S&P/ASX 200 in Australia rose slightly in early trade. But on the contrary, the Korea Kospi Index fell over 0.3% and the Kosdaq lost 0.65%. The Japanese stock market is closed for a public holiday on Monday.
Bitcoin and Altcoins
Bitcoin has been stuck between the $ 19,000 – $ 24,000 range for the past few weeks. It has only broken out of this range a few times since June, meaning the price has maintained the upper range for at least three months.
In the past Bitcoin have witnessed periods where prices trade in such a narrow range, after which the market will tend to fluctuate wildly.
In the past 24 hours, Bitcoin turned down after failing to regain the $ 20,000 threshold. After setting the local peak at $ 20,100, BTC returned to the area below $ 19,500, closing weekly at $ 19,416. This is considered the lowest weekly close since the end of June 2022.
Analysis of BTC's long-term outlook shows that it has interacted with long-term support.
In the past, when the price touched a long-term support level, the market would often create a strong pullback. Therefore, if the same thing happens, Bitcoin is likely to face a major pullback, forming a bear trap, before the next big bull run begins.
The aforementioned observation is also reflected in Bitcoin's long-term pricing model. At the moment, the market is trading below the fair value zone. This is proof that BTC is nearing the bottom of an ongoing bearish cycle.
BTC’s MVRV ratio seems to indicate that it is regaining strength, however, this is not an indication that the price is currently on a recovery trajectory. In fact, several other Bitcoin indicators indicate that bears are still dominating the market.
Addresses holding more than 1,000 BTC have now dropped to a 4-week low.
Furthermore, the number of new BTC addresses is also starting to level off. These observations show that investment flows tend to flow out of the market and growth slows down. This further increases the possibility of triggering a short-term bearish momentum for the largest cryptocurrency.
Although the long-term indicators indicate that BTC is at the bottom of a bearish range, the short-term indicators are still flashing a “caution” signal, as a major sell-off could still appear unexpectedly.
With Bitcoin unable to recover above $ 20,000, altcoin sunk in red.
Ethereum (ETH), the market's largest smart contract project, also recorded a sharp drop of more than 7% during the day. ETH is trending close to $ 1,300 when it bottoms around $ 1.325, the lowest level since mid-July.
The big projects in the top 100 were also "red on fire", with a decrease of up to 2 digits. Leading is Ravencoin (RVN) as evaporating nearly 14% in 24 hours, followed by Ethereum Classic (ETC), Kusama (KSM), Curve KNIFE Tokens (CRV), EOS (EOS), Celsius (CEL)… with a reduction of over 10%.