The cryptocurrencies suffer a drop after a solid start to the week. He Bitcoin (BTC) retreats moderately and stands at US$64,200 after reaching its maximum in the last two weeks. Meanwhile, Ethereum (ETH) moves away from US$3,200 and struggles to consolidate above US$3,100.
In the world of ‘altcoins’, the outlook is predominantly red. Of the top 20 alt tokens by market capitalization, only Solana (SOL) maintains a positive balance in the last 24 hours. Dogecoin (DOGE), cardano (ADA), Avalanche (AVAX) or Toncoin (TON), among others, register falls of more than 4%.
Some analysts suggest that the recent correction could have been influenced by the Securities and Exchange Commission (SEC) warning Robinhood over its cryptocurrency business. This Monday, the regulator warned the company about possible investigations, which could result in a cease and desist procedure, sanctions and restrictions on the platform’s activities.
However, most cryptocurrencies still remain above last week’s lows. The prospects of a more accommodative Federal Reserve (Fed) have been positive for riskier assets such as cryptocurrencies. The latest economic data has given some respite to the Fed, which has communicated through its president Jerome Powell that a rate hike is practically ruled out.. The first reduction in official rates is now expected to occur in September.
On the other hand, BTC spot exchange-traded funds (ETFs) appear to be once again supporting the leading cryptocurrency and digital assets in general. Grayscale Bitcoin Trust (GBTC) closed with positive net flows for the first time last Friday, an expected milestone in the market. Additionally, spot BTC and ETH ETFs approved in Hong Kong could be integrated into the Shanghai-Hong Kong Stock Connect platform, which could attract institutional investors from mainland China and generate a new wave of demand.
For its part, QCP Capital points out that bitcoin purchase options for September indicate optimism regarding a possible rise in BTC in the coming months, with prices ranging between $75,000 and $100,000.
From a technical point of view, Javier Molina, senior market analyst at eToro, highlights that bitcoin continues within a range of between $60,000 and $72,000 in the last month. Until prices exceed that level, the correction that began in March persists. Initial support is at $62,000, while resistance is at $68,500. A break above this level could signal new bullish momentum.
Source: Ambito
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