Bitcoin bounces off support, Solana enters overbought territory

Bitcoin bounces off support, Solana enters overbought territory

Market Picture

The crypto market capitalisation has declined by 1.4% over the past 24 hours to $3.9 trillion. At the end of Monday, pressure on Bitcoin spread to the market, halting growth in several altcoins.

The sentiment index remains at a comfortable level of 72, just short of the extreme greed zone. According to this metric, the market is not overheated, which preserves the potential for growth to accelerate. The optimal scenario for this would be a resumption of positive momentum in BTC.

Bitcoin slipped to $116K on Tuesday morning, the lower limit of the consolidation range of the last 10 days. However, during the European session, the price returned to the centre of this range, close to $118K. We will be able to talk about the end of consolidation if the price rises above $120K, which will signal a resumption of growth after a slight shake-up. An alternative scenario would be a deepening of the correction.

The price of Solana exceeded $200, returning to levels last seen in February. The RSI rose to 80, which in recent years has often triggered corrective pullbacks when the index (not the price) began to decline.

News Background

The ethPandaOps team said the next major Fusaka update will be deployed on the Ethereum network in early November. Ethereum developers will launch public test networks in September and October.

Large holders of the first cryptocurrency increased their transfers of coins to crypto exchanges by 60% over the week, which may indicate profit-taking against the backdrop of market growth, CryptoQuant notes.

The UK government is considering selling 61,000 confiscated bitcoins ($7.1 billion) to cover the budget deficit.

According to Glassnode's calculations, new investors have invested more than $16.75 billion in Bitcoin over the past two weeks, indicating growing optimism in the market. However, retail interest in BTC remains subdued despite reaching a new all-time high.

By the FxPro Analyst Team