TL;DR

• BTC is up & ETH is down

• BTC over-performed ETH this week 

• Bitcoin dominance is down

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

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BTC & ETH Market Update 📈

Crypto is up this week, with BTC being up 3.6% and ETH down 0.2%:

Bitcoin dominance has decreased over the week, rising from 54.0% to a peak of 54.25% and ending at 54.0%. 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 surged from $57,335 to $58,560 on September 12, currently trading at $58,069, a 3.6% increase.

This rise followed US economic data, including an August Producer Price Index (PPI) increase of 0.3% month-on-month and 2.4% year-on-year, surpassing expectations.

Higher-than-expected unemployment claims at 230,750 also influenced market sentiment.

Consequently, the probability of a 50 basis points (bps) rate cut at the September 18 FOMC meeting fell below 15%, while the chance of a 0.25% cut rose to 87%, according to CME Group's FedWatch tool.

Ethereum's price has lagged behind Bitcoin due to several factors. Firstly, the ETH/BTC ratio has dropped significantly, with ETH down 34% over the last 90 days compared to Bitcoin's 15% decline, highlighting investor preference for Bitcoin, especially with the success of Bitcoin ETFs.

Secondly, Bitcoin's market dominance reached a 40-month high of 58%, indicating stronger investor confidence in BTC over ETH.

Lastly, Ethereum's onchain metrics are sluggish, with active addresses and DApp usage declining, contrasting with the growth seen in competing blockchains like Solana and Tron.

Ethereum (ETHUSD) Analysis:

Ethereum (ETH) closed at $2,369.44 on September 12, 2024, showing a slight daily increase of $24.37.

The medium-term analysis indicates a falling trend channel with potential further decline to $2,116 or lower, following a negative signal from a double top formation. Current support is at $2,200 and resistance at $2,900.

The RSI curve supports this negative trend. Recent volume and volatility metrics show varying degrees of fluctuation, with a significant drop in liquidity over the longer term. For recommendations over the next one to six months, consult the detailed analysis.

Bitcoin (BTCUSD) Analysis:

As of September 12, 2024, Bitcoin (BTC) is trading at $58,271.00, having broken above the short-term resistance at $57,800, indicating a positive short-term outlook.

In the medium term, Bitcoin is within a horizontal channel between $52,436 and $68,604, showing slight optimism but with potential risks of breakdowns. Long-term trends remain positive, with a rising trend channel and key support at $31,000.

Overall, Bitcoin's technical analysis suggests a generally positive short-term and medium-term outlook, with caution advised for potential volatility.

Expected Trading Ranges:

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

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

Market Outlook:

With Bitcoin trading around $58,069 and targeting resistance at $68,119 the outlook remains positive if it breaks above this level. However, potential challenges include a possible death cross in technical indicators and changing market expectations for interest rates, which could impact future price movements.

In the short term, Ethereum's market outlook remains cautious due to its underperformance against Bitcoin, rising BTC dominance, and decreasing network activity. Unless Ethereum shows a rebound in investor interest and onchain metrics, it may continue to lag behind Bitcoin in the near future.

BTC/ETH ratio has seen an increase:

Over the past five days, the BTC to ETH conversion rate has experienced a general increase. On September 9, 2024, the rate was 24.13 ETH per BTC. It rose to 24.15 ETH on September 10, and continued to increase, reaching 24.47 ETH on September 11 and 24.59 ETH on September 12. As of September 13, the rate stands at 24.65 ETH, marking a cumulative increase of 1.08% over this period.

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Hot Coin: SUI 🔥

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

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

What is the project about?

Sui is a cutting-edge Layer-1 blockchain platform designed for global adoption, offering a secure, robust, and scalable development environment.

It utilizes a unique object-centric data model and the trusted Move programming language to address inefficiencies in existing blockchain frameworks. Sui prioritizes user experience by removing common barriers in blockchain interactions.

With features like zkLogin, sponsored transactions, and programmable transaction blocks, Sui sets a new standard for user accessibility and friendliness within Web3 applications, enabling simultaneous transaction processing unlike traditional blockchains.

Why is the project exciting now?

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

• Exceptional Scalability

• Earning Opportunities through Staking

• Rapid Transaction Speeds

• Advanced Programming Language

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