The crypto markets experienced a significant surge on Thursday, with Bitcoin (BTC) breaking above the $27,000 level. BTC reached nearly $27,300 and was trading at $27,010 at the time of writing this report, marking a 3.2% increase in the past 24 hours. Several other crypto assets also saw notable gains during this rally. Governance tokens of top DeFi lending platforms, including Compound (COMP), Aave (AAVE), and Maker (MKR), enjoyed gains of 21%, 10%, and 5%, respectively. LDO, the token of the liquid staking platform Lido Finance, saw an impressive jump of nearly 9%. Additionally, Arbitrum’s ARB token, which is part of the Ethereum scaling network, recorded a 9.6% rally, recovering from losses earlier in the month. This crypto surge coincided with a modest rebound in U.S. stocks, as the 10-year Treasury yield retreated from a 16-year high, oil prices pulled back from their 2023 highs, and the U.S. dollar also weakened.
The price of Bitcoin (BTC) has experienced a significant increase today, rising by over 3% with a sharp upward candle that propelled the price to $27,300. This surge in Bitcoin’s price has led to a one-week high and represents a 4% gain for the month of September. Notably, the supply of BTC on exchanges has continued to decrease since the peak observed on September 4th, with over 40,000 BTC leaving exchanges since then. This is often interpreted as a bullish signal, as traders typically withdraw their Bitcoin from exchanges when they intend to hold it in self-custody for the long term. Despite ongoing regulatory challenges, including the SEC’s campaign against Bitcoin ETFs and crypto assets in general, many BTC believers remain steadfast in their commitment to the digital asset. The resilience of long-term holders is seen as contributing to Bitcoin’s price stability. In fact, as of September 28th, long-term Bitcoin holders reached an all-time high, holding 76.1% of the total outstanding BTC supply. Despite today’s bullish momentum, the Bitcoin Fear & Greed Index still indicates market fear, although it has increased by 7 points compared to the previous month.
Recent data indicates that Ethereum (ETH) is currently priced at $1,619.41, reflecting a 1.79% increase. This price movement suggests a positive shift in momentum for ETH. Notably, ETH managed to break through the 21-day Exponential Moving Average (EMA), a significant technical indicator. This rapid growth in ETH’s price is viewed as a positive signal, instilling optimism among investors. Additionally, the crypto market has seen increasing interest from financial institutions and investment firms. VanEck recently submitted paperwork for its own futures-based Ethereum ETF, joining other firms like Grayscale, ProShares, and Bitwise in seeking approval for similar products.
In the wake of U.S. Court of Appeals Circuit Judge Neomi Rao’s decision in favour of Grayscale Bitcoin Trust (GBTC) in its case against the U.S. Securities and Exchange Commission (SEC) on August 29, several major institutions submitted applications for Bitcoin exchange-traded funds (ETFs). Despite this legal ruling, Gary Gensler, the SEC chairman, has remained firm in his position, refraining from categorising Bitcoin as a commodity. During his testimony before Congress on September 27, he reiterated that BTC is not considered a security.
In economic news, the gross domestic product (GDP) for the U.S., for the second quarter grew by 1.7% year-on-year, which fell slightly below the anticipated 2.0% growth rate. Additionally, data from the Personal Consumption Expenditures (PCE) index for August aligned with expectations. These economic indicators provide insights into the performance of the U.S. economy during this period.
Technical Outlook:
Bitcoin:
BITCOIN after testing the crucial support level of $25,000 (Horizontal Trendline & 50% Fibonacci Retracement Level) has witnessed a relief rally and the prices went up to $27,308 but with low volumes. On a broader time scale, the asset is still trading in a range from $25,000 to $28,000 and breakouts on either side of the range with good volumes will further decide the trend for BTC.
Ethereum:
ETH has been trading in a range from $1,670 to $1,550 over the past month. The asset has a strong resistance zone from $1,670 to $1,750 (Horizontal Trendlines, 20 Day Moving average and 200 Day Moving Average). To witness a rally, ETH needs to break, close and sustain above these resistance levels whereas $1,530 will act as a strong support level for the asset (78.6% Fibonacci Retracement Level).
BNB:
BNB after breaking the long-held support of $220 reached a low of $203.4. The asset made a ‘Morning star’ pattern at the low. However, the bulls struggle to break the crucial resistance level of $220. Once it breaks, closes and sustains above $220 then we can expect it to further rally up to $250-$255.
Weekly Snapshot:
| August | September | Last Month | Current Month | ||||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $26,194 | $27,021 | 3.16% | $30,177 | $25,409 | $27,489 | $24,930 |
| ETH | $1,656 | $1,664 | 0.50% | $1,878 | $1,552 | $1,720 | $1,533 |
| BNB | $217.34 | $215.08 | -1.04% | $248.51 | $204.40 | $225.59 | $204.36 |
| crypto | 1m – % Vol. Change (Global) |
| BitCoin (BTC) | -14.69% |
| Ethereum (ETH) | -13.22% |
| Binance Coin (BNB) | -11.71% |
| Resistance 2 | $32,500 | $2,150 | $0.95 | $255 |
|---|---|---|---|---|
| Resistance 1 | $28,500 | $1,750 | $0.75 | $220 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $25,000 | $1,500 | $0.50 | $200 |
| Support 2 | $22,500 | $1,350 | $0.41 | $2180 |
Market Updates:
- The United States Securities and Exchange Commission has delayed its decision on several proposals for spot Bitcoin (BTC) exchange-traded funds (ETFs), including BlackRock, Invesco, Bitwise and Valkyrie ahead of an anticipated government shutdown.
- Ethereum futures exchange-traded funds (ETFs) could start trading for the first time in the United States as early as next week, according to Bloomberg analysts.
- Coinbase International Exchange, a class F licence holder from the Bermuda Monetary Authority (BMA), announced it has received additional regulatory approval, allowing the platform to offer perpetual futures trading to non-United States retail customers.
