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CRYPTO Market Analysis: 12 Sept

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Total MarketCap 1.05T
Fear & greed index: 34 Fear
BTC dom: 49%
DOW: 34,646
S&P 500: 4461
NASDAQ: 15,290




- BTC: $25,765 (▼ 0.46%)
- ETH: $1,583 (▼ 2.09%)
- Solana: $18.25
- Polygon: $0.5141


The cryptocurrency market recently experienced a surge in volatility driven by concerns over FTX's potential asset offloading, causing Ethereum (ETH) prices to plummet to approximately 1530, while Bitcoin (BTC) briefly dipped to nearly 25,000. This volatility resulted from a short squeeze followed by a strong morning rally, leading to the liquidation of open interest. While some attribute this weakness to FTX-related events, it's unlikely that FTX would liquidate its entire portfolio at once, suggesting a gradual divestment strategy with a market maker. In the short term, significant macro-level fluctuations in the cryptocurrency market may not be expected, but positive news could surface.

Bitcoin faced resistance at 25,878 after rejecting the Point of Control (POC) at 25,723 and bouncing off support at 25,104. Currently trading above the POC, there's potential for ranging before the next move, possibly influenced by FTX unlock and CPI events. The Relative Strength Index (RSI) at 63 indicates slight overbought conditions. Ethereum followed a similar trajectory, breaking support at 1,593, finding a floor at 1,534, and encountering resistance at 1,593. RSI stands at 55, reflecting neutrality, with BTC dominance at 49.9% and stablecoin dominance stabilizing.

The recent market downturn and fear-induced sentiment appear manipulated, following a classic pattern of bearish sentiment and multi-month lows. There's a sense of optimism for a substantial market upturn by year-end, but it's crucial to exercise caution and consider different perspectives, as this outlook remains bullish at current price levels.

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