The decline in cryptocurrencies, including Bitcoin, that began yesterday seems to continue today. While many events are thought to influence this decline, a recent statement by Kamala Harris about taxing unrealized gains if elected president has caused significant concern.
Current State of the Crypto Market
Bitcoin continues to move between the price levels of $55,724 and $73,777. Although predicting the price direction is not easy, long-term investors seem to maintain a bullish trend. Data from CryptoQuant shows that approximately 45,000 Bitcoins exited exchanges on August 27, marking the third-highest exit.
In addition to Bitcoin, investors continue to buy Ethereum, which also shows a downward price movement. Popular crypto analyst Satoshi Sniper announced on X that Ethereum whales added approximately $540 million worth of 200,000 Ethereum over the last four days.
However, Bloomberg Intelligence senior commodity strategist Mike McGlone made a concerning statement on X, suggesting that the risk asset race “might be over.” According to McGlone, Bitcoin reached 15 times the value of the S&P 500 (SPX) in the first quarter of 2020, and the highest value in 2024 was 14 times. He indicates a possible 50% drop towards seven times the value of the S&P 500.
Bitcoin Analysis
Despite a significant attempt, Bitcoin failed to rise above $65,000 on August 25, showing decreased demand at higher levels. This led to a pullback below the moving averages on August 27.
Bulls are trying to keep the bottom level above $58,000, but a relief rally might face selling at the moving averages. If the price continues to fall or stays below the 20-day exponential moving average (EMA) of $60,9046, it will indicate that bears have fully taken control. The BTC/USDT pair could drop to $55,724 as bears gain strength.
Ethereum Analysis
Things do not seem to be going well for Ethereum either. After visiting the resistance level of $2,850 on August 24, it started to decline, with bears defending this level as resistance.
ETH/USDT pair saw an increase in sales after closing below the 20-day EMA ($2,670) on August 26. Bears might try to push the price down to the support level of $2,300. This area could be crucial because a move below this level might retest the period low of $2,111 seen on August 5.
A rise from current levels or a bounce after a drop to $2,300 could signal demand at lower levels. This could cause the current outlook to remain stuck between $2,300 and $2,850 for a few days.
