Bitcoin, Ethereum, Dogecoin Subdued: Why This Analyst Says Volatility Is 'Going To Kick In' Next Week

Zinger Key Points
  • Investor sentiment marred by "Extreme Fear" going into fresh trading week.
  • Bitcoin dodges hitting summer lows over the weekend.
  • Market intelligence platform says keep an eye on BTC and these altcoins amid FUD.

Major coins were seen trading lower Sunday evening as the global cryptocurrency market cap fell 0.9% to $923.7 billion at 8.05 p.m. EDT.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -0.7% -3.2% $18,802.10
Ethereum ETH/USD -1.8% -3.1% $1,294.22
Dogecoin DOGE/USD -3.35% -6.2% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
ApeCoin (APE) +5.3% $5.72
Maker (MKR) +4.4% $709.47
Chainlink (LINK) +3% ​​$7.87

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Why It Matters: Bitcoin and Ethereum followed other risk assets lower at the time of writing. U.S. equity futures were largely unchanged on Sunday evening. 

The upcoming week will see a number of officials from the U.S. Federal Reserve including Chair Jerome Powell and Vice Chair Lael Brainard make comments at various events.

Investors will look forward to personal consumption expenditures (PCE) data — a metric preferred by the U.S. central bank on Friday. 

Friday’s weakness did not lead to the apex coin touching the June lows of $17,708.62 and Bitcoin prevailed higher than that level over the weekend.

“The key technical levels haven't changed though, with bitcoin seeing plenty of support around $18,000-18,500 and the big test not far below around $17,500 - the low from earlier in the summer,” said Craig Erlam, a Senior Market Analyst at OANDA, in a note seen by Benzinga.’s “Crypto Fear & Greed Index” indicates that investor sentiment remains unchanged from last week. At the time of writing the index was at “Extreme Fear.”

Michaël van de Poppe said that Bitcoin was in a “narrow range” and he expects “volatility is going to kick in during the next week.”

The cryptocurrency trader said on Twitter that the apex coin is likely to see a breakout and a test of the $19,500 level. The volatility thesis was based on currencies, energy and commodity markets. The analyst also pointed to the upcoming Euro consumer price index and U.S. PCE data.

CryptoQuant analyst Jan Wüstenfeld said in a note that Bitcoin is” holding up relatively well” over the current correction compared with months before compared to the Nasdaq.

“Markets are not in a good place currently, and if you were to ask me, it is more likely than not that the bitcoin bottom is not in yet,” said Wüstenfeld.

Market intelligence platform Santiment tweeted that while a bulk of crypto assets were seeing a “major negativity” from the trading community, it could be worthwhile to keep an eye out for Bitcoin, BNB, Dogecoin and Chainlink.

“These top caps are showing particularly high levels of [FUD] that can lead to eventual breakouts.”

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