(Denys Serhiichuk – U.Today)
Bears are back in the game as the majority of the coins are red again.
ETH/USD
Ethereum (ETH) has turned out to be more bearish than Bitcoin (BTC), going down by 7%.
On the hourly chart, Ethereum (ETH) has successfully broken the local resistance level at $1,537, which means that bulls have chances for short-term growth. If the volume remains on the same level or keeps rising, the upward move may continue to the $1,580 mark.
On the bigger time frame, the situation is not so clear. The rate is stuck in the middle of the channel after yesterday’s sharp drop. Traders can consider a bull run only if the price comes back to the level of $1,650, formed by the false breakout.
On the weekly chart, nothing crucial has happened so far as the price has not left the border of the channel. However, if the drop continues to the $1,450 mark, one can see the breakout of the support level at $1,424 soon. Such a scenario is relevant until the end of September.
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Ethereum is trading at $1,548 at press time.
Bitcoin is a ‘wild card’ set to outperform – Bloomberg analyst
(Cointelegraph Team)
Bloomberg analyst Mike McGlone has labeled Bitcoin (BTC) a “wild card” which is “ripe” to outperform once traditional stocks finally bottom out.
In a Sept.7 post on Linkedin and Twitter, McGlone explained that while the United States (U.S.) Federal Reserve tightening will likely determine the direction of the stock market, Bitcoin remains a “wildcard” that could buck the trend, stating:
Bitcoin is a wild card that’s more ripe to outperform when stocks bottom, but transitioning to be more like gold and bonds.
The commodities strategist shared more details in a Sept. 7 report, which noted that Bitcoin was primed to rebound strongly from the bear market despite a “strong headwind” toward high-risk assets:
It’s typically a matter of time for the fed funds gauge to flip toward cuts, and when it does, Bitcoin is poised to be a primary beneficiary.
The report notes that while Bitcoin would follow a similar trend to treasury bonds and gold, Ethereum (ETH) “may have a higher correlation with stocks.”
The Federal Reserve’s increased quantitative tightening comes amid several major interest rate hikes throughout 2022, with the most recent spike accounting for a 75 basis points increase on Jul. 27.
While it is not known exactly when the Fed’s quantitative tightening will end, some economists predicted the endpoint will begin “at some point in 2023” according to a Bloomberg article published in August.
Quantitative tightening is a contractionary monetary policy tool that is used by central banks to reduce the level of money supply and liquidity in an economy, which can reduce spending across markets, such as stocks.
But despite Bloomberg’s bullish take, other experts believe that Bitcoin and equity markets have actually become more correlated than before.
Cointelegraph contributor Michaël van de Poppe recently said the correlation between the S&P 500 index and BTC was approaching 100%, while a number of IMF economists claimed to have seen a 10-fold increase in correlation between crypto and equity markets in some regions of the world.
Read Bitcoin Weekly Forecast: Macro bearish trend persists, but a respite for BTC bulls
