TL;DR

• BTC is down & ETH is down

• BTC over-performed ETH this week 

• Bitcoin dominance is down

• The hot coin we look at this week is $HNT

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BTC & ETH Market Update 📈

Crypto is down this week, with BTC being down 5.6% and ETH down 6.0%:

Bitcoin dominance has decreased over the week, rising from 54.1% to a peak of 54.3% and ending at 5.9%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

Bitcoin (BTC) experienced a significant decline, falling 5.5% from September 3 to September 5, reaching a low of $55,860 from a high of $59,090.

This price drop resulted in $58 million in liquidated leveraged long futures, indicating that bulls were not overly surprised by the downturn.

Despite this, Bitcoin derivatives have shown resilience, suggesting that traders are not excessively leveraging their positions or displaying overconfidence.

Ethereum's price has also suffered a similar fate in recent times. Due to several factors, Ether is underperforming the broader crypto market.

The recent launch of its spot exchange-traded fund (ETF) products has seen $475 million in outflows, reflecting weak institutional demand.

Additionally, Ethereum's transaction fees have dropped to their lowest level in over four years, raising concerns about network sustainability.

Ethereum (ETHUSD) Analysis:

As of September 6, 2024, Ethereum (ETH) closed at $2,394.22, down by 10.08 points.

The medium-term technical analysis indicates that Ethereum is in a falling trend channel, signaling ongoing negative development as investors continue to sell at lower prices.

A breakdown through the support at $2,887 from a double top formation suggests further declines to $2,116 or lower. The currency has support at $2,200 and resistance at $2,900.

Bitcoin (BTCUSD) Analysis:

Bitcoin closed at $56,640.00 on September 6, 2024, marking a decline amid broader economic uncertainties.

Short-term analysis indicates a falling trend channel with support at $52,337 and resistance at $68,119, reflecting negative investor sentiment and lower buy interest, confirmed by high volumes at price bottoms.

Medium-term analysis shows horizontal trends, with Bitcoin marginally breaking down through support at $57,400, suggesting potential further declines, highlighted by consistent low volumes at price tops.

Long-term trends are more positive, with Bitcoin in a rising channel, indicating increasing buy interest over time and a neutral technical assessment, suggesting a hold strategy.

Expected Trading Ranges:

• Ethereum (ETH): Support: $2,200 Resistance: $2,900

• Bitcoin (BTC): Support: $52,337 Resistance: $68,119

Market Outlook:

Bitcoin is in a short-term downtrend with support at $52,337 and resistance at $68,119. Medium-term signals suggest further declines, but long-term trends remain positive.

Overall, Bitcoin is medium-risk with low liquidity and medium volatility. Investors should monitor upcoming economic data and technical indicators for potential price movements.

Ethereum's market outlook is negative, with a falling trend indicating potential further declines. Key support is at $2,200, while resistance is at $2,900. Technical indicators and declining volumes suggest ongoing challenges in the near to medium term.

BTC/ETH ratio has seen an increase:

Over the past five days, the BTC to ETH rate has experienced a net increase. Starting from 23.30 ETH on September 2, 2024, the rate rose to 23.98 ETH by September 6, 2024. This reflects a general upward trend, with significant daily increases on September 4 and September 5. Despite some fluctuations, the overall movement has been positive during this period.

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Hot Coin: HNT 🔥

In this week’s newsletter, we dive into Helium Network’s token with the ticker: $HNT.

The price action and volume have been growing consistently and doesn’t seem to stop any time soon:

What is the project about?

In a nutshell, the Helium Network is a decentralized wireless infrastructure that leverages blockchain technology to create a global network for IoT and mobile devices.

Utilizing the Solana Blockchain, it incentivizes individuals and organizations to deploy and maintain network coverage through token rewards. Helium allows devices to connect to the Internet and geolocate without needing satellite hardware or costly cellular plans.

By decentralizing the industry, Helium transforms wireless network coverage into a competitive commodity, reducing costs and fostering innovation in connectivity solutions.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter:

• Decentralized and Incentivized Infrastructure

• Scalable, Secure, and Versatile

• Innovative Proof-of-Coverage (PoC)

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