Crypto Market Outlook Uncertain as Bitcoin Slips Below $40,000

Bitcoin (BTC) hit a new September low at $39,800 today before getting a mild relief bounce early morning as the overall crypto market continued to showcase volatility with an uncertain outlook for upcoming weeks. Earlier this week, the crypto market, along with broader financial markets, was impacted by a possible collapse of China’s real estate company, Evergrande Group.

All the top 20 cryptocurrencies excluding Avalanche (AVAX) dipped considerably early on Wednesday as BTC failed to hold out $42,000 support intra-day. The total cryptocurrency market cap stood at $1.85 trillion with a decline of 3 per cent from the previous day. Trade volumes across exchanges declined by 10 per cent in the same period.

BTC could not get back above $44,400 today which has now been flipped from support to resistance while making an intraday high of $43,600. It is now trading at $42,290, a daily decline of 1.5 per cent. BTC dominance is now at 42.9 per cent with a 0.5 per cent gain in a single day.

ETH broke below psychological support at $3,000 for the second consecutive day and hit $2,680 before bouncing to end the day at $2,870, a 4 per cent drop. ETH is now struggling to make higher lows and is expected to drop further in the upcoming weeks before it can consolidate towards $3,000 and above.

All major altcoins bleed today with Polkadot (DOT), Uniswap (UNI), Terra (LUNA), Litecoin (LTC), and Chainlink (LINK) dropping by more than 5 per cent. AVAX emerged as the glaring exception with a 9 per cent gain today as it nears the launch of its Apricot Phase 4 upgrade later today. 

BTC resistance at the $42,000 levels is gaining in strength and analysts expect a revisit of the $38,000-39,000 region before any major trend reversal. On the upper side, the $45,700 level will also see strong resistance as it hosts the 200-day moving average. Analysts expect a turn of events in the next two to three weeks possibly by mid-October.

Top Gainers today:

1. XinFin (XDC): 15.2%
2. Avalanche (AVAX): 9.4%
3. Bitcoin SV (BSV): 8.2%

Top Losers today:

1. OMG Network (OMG): -17.6%
2. Audius (AUDIO): -13.9%
3. Fantom (FTM): -12.0%

The analysis includes the top 100 cryptocurrencies only as of 9 am

Source: CoinMarketCap

Crypto News at a Glance:

1. Non-fungible token (NFT) marketplace Sorare has raised $680 million in a Series B funding round led by Japanese fintech firm Softbank to expand its portfolio of football player NFTs by partnering with more football leagues and associations.
2. FTX, one of the world’s largest cryptocurrency exchanges, is expanding its operations to the Bahamas after securing regulatory approval from the Securities Commission of the Bahamas as an official digital asset business.
3. Leading crypto exchange Coinbase has secured a contract for $3.6 million to develop technology for the Department of Homeland Security.
4. Decentralised finance (DeFi) platform Vee Finance has reported a loss of $35 million after hackers exploited a vulnerability on the platform’s trade contract address. To prevent further losses, the Vee Finance team suspended the platform’s contracts.