Market picture

The turnaround in sentiment on the US markets saw the crypto market capitalisation rise by 3.2% in 24 hours to reach $2 trillion. However, it is too early to talk about a reversal in growth, as this level could prove resistant to intensified selling. The Cryptocurrency Sentiment Index rose to 33, the highest since late August, but is still in the 'fear' zone.

Bitcoin posted an impressive 7% gain on Monday but corrected some of the gains early in the new day, adding 4% in 24 hours. The technical picture remains supportive of a rebound, but buyers are being cautious and taking profits quickly.

Solana has found support at $120, a key pivot level over the last ten months, and has risen to $134 at the time of writing. Technically, the recovery looks relatively straightforward up to the $149-153 area, where the 50- and 200-day moving averages are centred. A break above $160 would confirm a breakout.

In our view, caution and a tendency to sell growth will prevail in the market, at least until the release of US inflation data on Wednesday. This could continue until the Fed's interest rate decision on September 18th.