Bitcoin Breaks $77,000, Ethereum Dead Cross… Will the Crypto Market Decline Further?

▲ Ethereum (ETH), Bitcoin (BTC) ©Godasol

The cryptocurrency market has retreated again due to the shock of US inflation and a sharp rise in Treasury yields, but major support lines have not yet been broken. With Bitcoin (BTC) falling below $77,000 and a dead cross appearing in Ethereum (ETH), the market seems to be waiting for additional economic indicators without setting a clear direction.

According to investment media FXStreet on September 11 (local time), the total cryptocurrency market capitalization decreased by 1.1% to $2.63 trillion. This is due to investors withdrawing from risk assets after the release of US inflation data. However, the market has maintained the sideways range formed in recent days, indicating continued wait-and-see sentiment. It is still too early to conclude that a trend reversal in a resistance zone, similar to May, has recurred.

Bitcoin fell below $77,000 on Thursday, reaching an 8-day low, as US Treasury yields sharply rose due to soaring producer prices and expectations for a US Federal Reserve (Fed) interest rate hike strengthened. On the weekly chart, it retreated again from the 50-week moving average, weakening attempts to recover its upward trend. However, the current price is receiving support from buying pressure at the bottom of the sideways range. CryptoQuant pointed out that a high proportion of large BTC volumes are moving to exchanges, and such movements often lead to selling. The Coinbase premium also recorded a negative value, indicating weak demand from US investors.

Ethereum is consolidating sideways without settling above $2,500. In particular, a dead cross has formed, where the 50-week moving average has fallen below the 200-week moving average, while resistance at the 200-week moving average strengthens. However, the media explained that similar signals in 2019 and 2023 did not lead to further sell-offs. Conversely, when the long-term moving average was broken upwards, price rallies occurred six times in the past.

Market outlooks are mixed. Anthony Pompliano, CEO of ProCap Financial, predicted that Bitcoin is on the verge of a massive rally, citing a 24.8% increase in the past 7 days, and assessed that liquidation data and institutional fund inflows also support the bullish view. On the other hand, the Bank for International Settlements (BIS) warned that the AI investment boom could pose risks to financial stability, potentially leading to a global financial crisis if the AI market corrects.

In the altcoin market, weakening institutional demand for Dogecoin (DOGE) was highlighted. Bitwise decided to close its Dogecoin spot ETF after 10 months of launch, citing a lack of investor interest. Dogecoin has fallen by over 45% since the fund's launch. Two other Dogecoin spot ETFs from other asset managers remain in the market. Ultimately, the cryptocurrency market has retreated to major support lines amid US inflation and interest rate burdens, with BTC's defense of the bottom of its sideways range and ETH's ability to break through its long-term moving average being key observation points.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*