Bitcoin, Ethereum, Dogecoin Trade Lower As ETF Outflows Build Pressure: 'Short-Term Regression Downtrend, But With Bullish RSI Divergence'

Author: Khyathi Dalal | September 05, 2024 04:14pm

Cryptocurrency markets are trading lower as spot Bitcoin ETFs witnessed a total net outflow of $37.2 million, marking it the sixth consecutive day of net outflows.

Cryptocurrency	Price	Gains +/-
Bitcoin (CRYPTO: BTC)	$56,274.68	-2.8%
Ethereum (CRYPTO: ETH)	$2,376.69	-2.9%
Solana (CRYPTO: SOL)	$129.24	-2.9%
Dogecoin (CRYPTO: DOGE)	$0.09784	-0.3%
Shiba Inu (CRYPTO: SHIB)	$0.00001318	-1.3%

Notable Statistics:

• IntoTheBlock data shows a 7% fall in large transaction volume and transactions greater than $100,000 narrowed from 9,458 as of Sep. 3 to 8,371 as of Sep. 4. Exchanges netflows dropped by around 75%.
• Coinglass data noted 31,860 traders were liquidated in the past 24 hours as total liquidations stood at $81.24 million.
• September's Bitcoin average returns in the past 12 years stood at 4.4% making it the crypto king's worst month.

Notable Developments:

• Blockchain Core Foundation Launches Liquid Staking Token Pegged Against Bitcoin
• Kamala Harris Super PAC Now Accepting Bitcoin, Ethereum And Other Cryptocurrencies For Campaign Donations
• Anthony Scaramucci Believes Bitcoin Could Reach $150K-$200K With King Crypto Wallets Approaching 1B, Says ‘There’s A Lot Of Upside Ahead’
• Puff, Puff, Pass: This Crypto Project Wants You To Vape To Earn, Raises $6M For Specially-Designed Vapes
• Robinhood Reaches $3.9M Settlement With California Over Blocking Cryptocurrency Withdrawals
• Kim Jong Un’s North Korea-Backed Hackers May Target Bitcoin And Ethereum ETFs, FBI Issues Warning
• Radar reported that MasterCard launched crypto cards in Europe which are linked directly to the private wallet.

Top Losers:

Cryptocurrency	Price	Gains +/-
Ordi (CRYPTO: ORDI)	$28.88	-7.9%
MANTRA (CRYPTO: OM)	$0.9099	-7.5%
Aptos (CRYPTO: APT)	$5.73	-7%

Trader Notes: Despite the recent drop in Bitcoin prices, crypto analyst Caleb Franzen predicts an intact bullish RSI Divergence for Bitcoin.

#Bitcoin in a short-term regression downtrend, but with a bullish RSI divergence that's still intact. pic.twitter.com/isOdGPsrD9

— Caleb Franzen (@CalebFranzen) September 5, 2024

Drawing parallels to the 2016 cycle, CryptoCon noted that the Bitcoin trend strength prophecy has played out as predicted. Bitcoin dipped into the support zone in September 2024 following a mid-cycle peak. This recurring pattern, observed in alternating cycles, has remained consistent for support zone entries.

The pattern of threes continues to hold, both in mid-cycles and bear markets, indicating that the current cycle is not over—it’s a repeat of September 2016.

Crypto trader Seth predicts Bitcoin is about to crash based on the correlation with the Global Money Supply. He added that central banks will stop printing money and as money supply goes down, Bitcoin prices will crash.

Voicing a similar opinion, CryptosBatman stated that Bitcoin RSI hit the upper band flashing a cycle top signal similar to the last two market peaks. He added that "September is not historically a good month either."

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• Trump Promises To Turn the U.S. Into the ‘Crypto Capital of the World’ – Can He Actually Follow Through?

Posted In: $BTC $DOGE $ETH $OM $ORDI $SHIB $SOL BTC