The price of an asset can fluctuate greatly when there are a large number of buyers and sellers. If there are few of them, then there will be no big movements. It is the latter case that is observed in the crypto market in the fall of 2023.


Bitcoin continues to trade around $26,000. It has shown a slight increase of 1.8% in seven days. At the same time, only once in a week – on Thursday, September 7 – BTC showed dynamics, and the price changed by more than 1%.



The lack of movement is explained by the fact that in August 2023, trading activity reached a minimum in 4.5 years. The small blip in volatility that followed news of Grayscale’s win over the Securities and Exchange Commission (SEC) in court turned out to be temporary. As a result, the price of Bitcoin fell back, and intraday changes, with rare exceptions, exceeded 0.5%. At the same time, low activity is observed both in cryptocurrency trading and in derivatives transactions. Digital assets were traded for $475 billion in August – the minimum since March 2019. Derivatives trading volume
made up $1.62 trillion is the second lowest since 2021.

Interesting information
lead analysts of the YouTube channel InvestAnswers. They took advantage
data Glassnode platform and found that over the past month, 95% of Bitcoins have not been touched at all. And any movements occurred only with 5% of the BTC supply. This may also explain the low volatility in the markets: investors prefer to remain aloof from trading decisions.

From a technical analysis perspective, Bitcoin is in bearish territory, with the price remaining well below its 50-day moving average (in blue). The support and resistance levels have not changed since last week and are located at $24,756 and $28,142, respectively.



Fear and Greed Index for the past week
grew up up another six points to 46. This continues to indicate fear outweighs greed among Bitcoin investors.


Ethereum grew by 1.09% for the week from September 1 to September 8. On no day did the price of the cryptocurrency change by more than 1%. Ethereum continues to consolidate around $1,600, coming close to this level, but only slightly breaking through it.



The main news was applications for spot Ethereum ETFs. Similar initiatives have been launched by companies such as Ark Invest and 21 Shares, as well as VanEck. So far, however, nothing has been approved, and the information has not caused any excitement in the markets.

But investment giant Fidelity, which previously submitted an application for a spot Bitcoin ETF, is confident that ether is undervalued. In company
considerthat the fair price of the cryptocurrency in modern conditions (the supply is 120 million, and annual commissions are $6.8 billion) is $2,090: this is more than 25% higher than the current value.

While investment sharks are making optimistic forecasts, bears continue to reign supreme among Ether investors. The 50-day moving average is well above $1,645, the current market price of the second largest cryptocurrency by capitalization. The coin continues to trade near the support level around $1,600. The resistance level is around $1,750.




Cardano has gained about 1% over the past week. Intraday volatility here is even lower than that of Bitcoin and Ethereum: the price only once, on September 5, exceeded the threshold of change of 0.5%. At the same time, five trading sessions nominally ended in the green zone.



The creators of Cardano decided to try out Warp Transactions. This new development is a variation of UTXO transactions. It is based on multi-signature technology and operates without the use of smart contracts. When conducting a transaction with a signature
are engaged both participants: the one who transfers coins and the one who receives.

Such transactions will
available for now only for Typhoon wallets. Either party (the receiver of the coins or the one who transfers them) can cancel the transaction. If the transaction is not confirmed by the other party within 24 hours, it is cancelled. During these 24 hours, the assets of the person sending will be
locked in a mempool managed by the Typhoon wallet.

However, the news about the innovation did not put Cardano on a bullish track. Here, as in the entire cryptocurrency market, bearish trends continue to prevail. The downward trend has been going on for almost two months now, starting on July 14th. Continued decline should be expected if the level of $0.24 is broken. If the resistance level of $0.28 is broken, then the bearish forecast should be revised and replaced with a bullish one.



In short, the continued passivity of investors on cryptocurrency exchanges is not leading to the growth of Bitcoin and altcoins. The volatility in the crypto market over the past week is not much different from that observed in gold or the dollar.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.