Crypto update: Bitcoin rises, ETH slips; investors await US Fed decision

The crypto markets showed tentative signs of recovery on Monday after a largely stable weekend, with major digital assets experiencing limited volatility. Bitcoin (BTC) led the upward movement, maintaining its position above the crucial $116,000 mark and setting a steady tone across the market. 

 

Despite the modest gains, sentiment around the short-term outlook, analysts said, remains cautious.  

At last check, Bitcoin was trading at $116,370, marking a 0.46 per cent increase over the past 24 hours. The cryptocurrency traded in a narrow range between $114,903 and $116,181 during the session, according to CoinMarketCap. Bitcoin’s daily trading volume climbed to $35.24 billion, while its market capitalisation held steady at $2.31 trillion, solidifying its position as the world’s largest digital asset.

 

Furthermore, Bitcoin's market cap dominance also witnessed a sharp fall from 66 per cent to 57.2 per cent, indicating that altcoins have outperformed BTC over the past few weeks. Key drivers for the flagship currency, according to CoinSwitch Markets Desk, include anticipation of US rate cuts and technical patterns, such as filling a futures gap (CME gap) that traders are watching closely.

Bitcoin faces strong resistance at $120,000

The asset, according to Harish Vatnani, head of trade at ZebPay, faces strong resistance at $120,000 and $125,000. "Bitcoin, to rally further, has to break, close, and sustain above these resistance levels, whereas $105,000 and $100,000 will act as strong support for BTC," said Vatnani.

 

Vikram Subburaj, CEO of Giottus, on the other hand, believes that Bitcoin is yet to show a clean breakout. "Unless $114,000 turns into a solid base, the move risks fading. However, a push through $117,000 could quickly reset momentum," said Subburaj.

 

Market participants, analysts believe, are broadly aligned in expecting policymakers to cut rates by at least 25 basis points, with recent supportive US macroeconomic data reinforcing that conviction. 

 

"Overall, markets remain range-bound, but volatility could return swiftly once policy signals are clearer. For investors, this is a good time to enter the market at a reasonable price point and keep accumulating," said Subburaj.

Ethereum faces resistance at $4,760 - $5,000 

Ethereum (ETH), on the other hand, witnessed a decline on Monday. At last check, ETH was trading at $4,660, down 0.35 per cent in the past 24 hours. Ethereum’s price fluctuated between $4,581 and $4,681 during the day. Despite recent gains, ETH remains nearly 6 per cent below its recent peak of $4,953, recorded on August 25 this year.

 

From a technical perspective, Ethereum, according to the CoinSwitch Markets Desk, is consolidating around $4,600–$4,700, having rallied from early-September lows. "Resistance ahead at approximately $4,760 and possibly toward $5,000 if bullish momentum holds. Key support is between approximately $4,550–$4,650."

 

"Furthermore, the institutional flows via ETH ETFs and shrinking exchange reserves are tightening sell-side pressure, boosting sentiment. The Fed is expected to cut rates on Sept 17, which is driving speculative demand. But there’s a 'catch' — longer-term Treasury yields might stay elevated due to inflation, undermining some of the potential tailwinds for BTC," wrote the analysts at CoinSwitch Markets Desk.

 

Altcoin market snapshot

Among the altcoins, Flare (FLR), Monero (XMR), Aerodrome Finance (AERO), Ethena (ENA), Bitcoin Cash (BCH), Nexo (NEXO), Story (IP), OKB (OKB), Bitcoin (BTC), GateToken (GT), XDC Network (XDC), KuCoin Token (KCS), Tether Gold (XAUT), and PAX Gold (PAXG) were the top gainer on Monday, rising up to 6 per cent on CoinMarketCap.

 

Conversely, Worldcoin (WLD), Zcash (ZEC), Bonk (BONK), Cronos (CRO), Pi (PI), Raydium (RAY), MemeCore (M), Virtuals Protocol (VIRTUAL), MYX Finance (MYX), World Liberty Financial (WLFI), SPX6900 (SPX), Fartcoin (FARTCOIN), Jupiter (JUP), Four (FORM), POL (POL), Kaspa (KAS), FLOKI (FLOKI), Dogecoin (DOGE), Celestia (TIA), Cosmos (ATOM), Arbitrum (ARB), Gala (GALA), Curve DAO Token (CRV), Dogwithhat (WIF), Sonic (S), Algorand (ALGO), Tezos (XTZ), Stacks (STX), and Cardano (ADA) were the top laggards, falling up to 5 per cent.