Cryptocurrency Prices September 2: Bitcoin Falls Below $58,100; Altcoins Slide Up to 4%

Major cryptocurrencies posted losses on Monday, with Bitcoin falling below $58,100 and Ethereum falling below $2,500. The global cryptocurrency market cap also declined by 1.9% to around $2.01 trillion over the past 24 hours.

At 1:54 PM IST, Bitcoin was trading at $58,027, down nearly 0.5%, while Ethereum was down 0.9% at $2,461. Over the past week, Bitcoin has fallen nearly 9%, and has fallen 10% in August after briefly touching $64,000 earlier in the month.

Edul Patel, CEO of Mudrex, commented: “Bitcoin’s drop below $60,000 was driven by increasing selling pressure and outflows from spot Bitcoin ETFs. A further decline could push it towards the $55,700 support level.”

CoinDCX research team noted: “The cryptocurrency market closed the month negatively, with September being historically unprofitable. Factors such as the US presidential election, potential rate cuts, and ETF inflows could affect this trend. Increased volatility could follow with upcoming US unemployment data.”Altcoins also saw declines, with BNB, Solana, XRP, Dogecoin, Toncoin, Cardano, Shiba Inu, Chainlink, and Polkadot all down 4% in the past 24 hours. Stablecoins accounted for 91.95% of the total 24-hour cryptocurrency market volume, which stood at $51.41 billion, according to CoinMarketCap. Bitcoin’s market cap fell to $1.146 trillion, with a dominance of 56.47%. Bitcoin’s 24-hour trading volume jumped 73% to $26.9 billion.

Technical viewpoint by ZebPay Trade Desk

The price has been facing strong selling pressure and is on track for a weekly decline of over 9%. Bitcoin has consistently formed lower highs over the past few months, signaling a bearish trend. This puts the onus on bulls to defend key support levels.

Meanwhile, markets are anticipating a major catalyst with a potential rate cut by the US Federal Reserve in September.

Over the past three weeks, Bitcoin has continued to trade sideways in a wide range from $56,000 to $65,000 with low volumes. On the weekly chart, we can see that the asset is attempting to create a “bull flag” pattern. BTC has also struggled to sustain and close the week above the $70,000 mark. To witness a rally, it needs to break through the pattern with good volumes and prices need to hold above $70,000. The asset has strong resistance at $66,500, while $56,000 and $52,500 will act as strong support.

(Disclaimer:The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)