Today I’ve got a quick update for you all on the crypto market and what to expect in the next few weeks. I’ll also briefly go over my thoughts on how the rest of the year will shape up and what specific catalyst this market is in dire need of. As always, watch the video for my full analysis or read below for the summary.

Bitcoin’s Recent Movements

Starting with Bitcoin (BTC), the market has been through a turbulent phase since spring. We’ve seen a pattern of lower highs and lower lows, which is unusual for what many analysts anticipated would be a bull market. As July came to a close, Bitcoin was on its way to $70,000, only to take a sharp downturn at the beginning of August, briefly dipping below $50,000 before stabilizing around $54,000.

Since then, Bitcoin has managed to recover slightly, fluctuating between $58,000 and $60,000 over the past few days. However, there is a possibility that Bitcoin might retest its recent lows in the next couple of weeks. This could mean a revisit to the $54,000 or even $50,000 mark. Brace for a bit more volatility before things start to improve.

After that, we can expect BTC to climb back towards the $62,000 range and eventually, the $68,000 level that was seen in July. As we navigate this volatility, it’s crucial not to be swayed by short-term price movements but to focus on the longer-term potential.

Ethereum’s Position in the Market

Switching gears to Ethereum (ETH), the scenario is somewhat different. Ethereum’s price hovered around $3,400 for much of the summer, fluctuating between support and resistance at this level. However, late July saw Ethereum take a significant hit, dropping to around $2,100 before finding a temporary resting point at $2,600.

Like Bitcoin, Ethereum could also face another test of its recent lows in the coming weeks. The key level to watch here is the 200-day moving average, which is expected to act as a strong support. Should prices dip further, this moving average will be a critical indicator of whether Ethereum can stabilize and begin its ascent. For a more optimistic outlook, Ethereum would need to break and hold above $3,000 for a few days, paving the way for a potential rally back to $3,400.

Liquidity and Its Impact on Crypto Markets

One of the most significant factors that will influence the crypto market as we move towards the end of 2024 is liquidity. Over the past few months, we’ve seen a contraction in liquidity across the macroeconomic environment. Cryptocurrencies, being risk assets, thrive in conditions where liquidity is abundant. Conversely, when liquidity dries up, they tend to underperform. Liquidity is the lifeblood of the crypto market. When liquidity rises, cryptocurrencies pump with fury.

The remainder of 2024 will likely be defined by how much liquidity is injected into the market. This could come in the form of rate cuts from the Federal Reserve, or through other means such as increased spending or monetary policy adjustments by the Treasury. Whether it’s Janet Yellen or Jerome Powell leading the charge, the introduction of additional liquidity will be a key catalyst for market movements.

The Road Ahead

The next big event on the horizon is the Federal Open Market Committee (FOMC) meeting in September. Many market participants are anticipating the first rate cut in a long time, which could have profound implications for both Bitcoin and Ethereum. As we approach this pivotal moment, the crypto market could experience heightened volatility, but also the potential for significant upside should liquidity conditions improve.

Stay tuned for more updates as we continue to navigate these uncertain yet exciting times in the crypto market. Until next time, keep your eyes on the charts and your focus on the broader economic picture.

Editor’s Note: Cryptocurrency has been the best returning asset class of the last decade and is know for its parabolic bull markets. It is also a key to a truly diversified portfolio and one of the best hedges against the potential risks that lie ahead in markets. But you need to act now before institutions gobble it all up.

If you’re worried you can’t figure out crypto… don’t be. Our in-house crypto expert, Alex Benfield, will walk you through everything you need to know about crypto, step by step.

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This article previously appeared on Investing Daily.