Major cryptocurrencies are off to a rocky start this week, with Bitcoin (BTC) plunging below the $58,000 mark and Ethereum (ETH) slipping under $2,500 once again. The overall cryptocurrency market cap experienced a 1.91% drop, just hovering above the $2 trillion threshold.

Nearly all major cryptocurrencies have reported significant weekly declines. Bitcoin (BTC) is down over 10%, Ethereum (ETH) has fallen by nearly 11%, and Solana (SOL) has plummeted by an alarming 20%. Other altcoins have also faced substantial losses, such as Dogecoin (DOGE), which dropped by 14%; Toncoin (TON), down 10.71%; Cardano (ADA), losing almost 15%; and Polkadot (DOT), which declined nearly 15% as well. Analysts are increasingly concerned that Bitcoin might be entering a bear market, as the current price action suggests further declines could be imminent.

### Crypto Markets Await Crucial US Job Data

Both traditional and cryptocurrency markets are in anticipation of significant events, most notably the release of the US job data this week. Employment figures are of particular interest as they provide insights into potential rate cuts planned by the Federal Reserve, which in turn impact Bitcoin and other major altcoins. Federal Reserve officials are scheduled to speak this week, offering further insight into the Fed’s stance on upcoming policy decisions.

The US job data will be published on Friday (September 6), serving as a critical indicator for forthcoming Fed policies and offering investors a clearer picture of the country’s economic condition. Current estimates predict an increase of 162,000 jobs compared to 114,000 in the previous month. Additionally, the monthly unemployment rate is expected to drop to 4.2% from July’s figure of 4.3%. While these numbers are not anticipated to affect upcoming rate cut plans significantly, any unexpected figures could influence broader market sentiment.

### Where Do BTC and Other Altcoins Go From Here?

The last week has been tough for cryptocurrency markets, with Bitcoin (BTC) dipping below $58,000 as the new week kicks off. Ethereum (ETH) has also lost its grip on the $2,500 level, now trading around $2,450. Historical trends suggest Bitcoin could further decline to around $50,000 if bearish sentiment persists throughout September. Historically, September has been a weak month for Bitcoin, often ending lower than its average performance for the year.

Popular trader CrypNuevo speculated about possible market movements this week, stating:

“From a trading perspective, I’m favoring longs, so I’d prefer seeing the move down first to hit the liquidations and fill the wick at $56.6k where I could long. So I’m keeping a long order at that $56.6k level on Sunday & Monday in case we see a false move at the start of the week.”

Despite the downturn, major Bitcoin holders are not panicking; instead, they are using this dip as a buying opportunity. According to market intelligence platform Santiment:

“Over the past month, wallets holding 10-10K BTC have collectively accumulated an additional 133.3K coins while smaller traders continue to sell off their holdings.”

Another positive sign is that the amount of Bitcoin held on major exchanges has continued to decline, with CryptoQuant data showing a 12.9% reduction in crypto reserves on these platforms since the beginning of the year. This trend indicates long-term bullish sentiment among investors.

### Cryptocurrency Markets Lost Over $300 Million in August

The cryptocurrency sector suffered significant losses in August, totaling $313 million due to over ten hacking incidents. According to security firm PeckShield, phishing attacks were responsible for 93.5% of these losses, amounting to $293.4 million. The largest hacks included two phishing attacks resulting in losses of $238 million BTC and $55 million DAI. The Ronin Network was another significant target, managing to recover $12 million but still suffering unauthorized transactions worth $5.1 million. DeFi protocol Nexera also reported losses of $1.83 million due to a smart contract exploit.

### First AI-Managed Crypto Transaction

In a groundbreaking development for the crypto industry, Coinbase reported its first crypto transaction entirely managed by AI bots. This transaction was overseen by Coinbase CEO Brian Armstrong, who announced on X:

“This week at @CoinbaseDev, we witnessed our first AI to AI crypto transaction.”

### Bitcoin (BTC) Price Analysis

Bitcoin (BTC) faced a challenging start to September, hitting a two-week low and dropping below $58,000 late on Sunday. The dip occurred during a weekend of typically low liquidity, preventing buyers from halting the decline. BTC ended August down by 8.6%, significantly lower than its average monthly gain of 1.75%, according to CoinGlass data.

As shown in recent price charts, BTC spent most of the last week of August in negative territory after a sharp drop of 5.39% on August 27 brought its price below both the 50-day and 20-day Simple Moving Averages (SMAs) and the $60,000 level. Despite attempts at recovery by buyers, sellers managed to push BTC below $58,000 by Sunday.

One analyst pointed out:

“We need to start bouncing out of this range and make a higher high to confirm we’re still in the uptrend since August. Bitcoin must stay above $57.7K; if it breaks down further, it needs to hold at $56K or risk making a lower low.”

However, some analysts believe Bitcoin may need to dip further before resuming its uptrend. Markus Thielen from 10x Research suggested waiting for BTC to fall into the $40,000 range as an entry point for a bull market.

### Ethereum (ETH) Price Analysis

Entering September on a bearish note, Ethereum (ETH) dipped below $2,500 and retested the $2,400 support level, reaching a low of $2,425. ETH struggled to maintain levels above $2,600 despite hitting a high of $2,820 as recently as August 24. The price turned bearish by August 27, dropping to $2,458 after an 8.33% decline.

August has been ETH’s worst month since the DeFi summer of 2020, largely due to migration to Layer2 networks and the introduction of Blobs through ERC 4337. These developments have hurt ETH’s “sound money” narrative and led to reduced network fees and rewards for ETH stakers.

To regain momentum, ETH must break above the $2,600 price level. Successfully doing so could lead buyers to target $2,850. Conversely, if ETH fails at these levels and breaks below $2,400, it could dip further to $2,300 or even $2,200.

### Solana (SOL) Price Analysis

Solana (SOL) saw intensified bearish sentiment over the weekend as it fell below $130 after hitting a low of $127 on Sunday. SOL has struggled recently and spent last week in negative territory after failing to recapture momentum post-rejection at $160.

Indicators suggest that bears currently dominate SOL’s market sentiment. A downward-sloping RSI and bearish MACD indicate strong selling pressure.

If SOL continues its downward trend, it could slip below $120 to around $116 before stabilizing. Buyers are expected to defend this level strongly.

### Polkadot (DOT) Price Analysis

Polkadot (DOT) is fighting to stay above $4 amid growing bearish sentiment after dipping below $4.20 over the weekend. DOT has wiped out gains made during its recent uptick to $5.

For any upward momentum to take hold, buyers need to push DOT above the 20-day SMA around $4.70. If sellers take control and push DOT below $4, its multi-year support at $3.62 could come into focus.

### Toncoin (TON) Price Analysis

Toncoin (TON) is struggling to push above $6 as sellers actively defend this level. Bearish sentiment around TON intensified over the weekend as it dropped by over 4% on Sunday.

Buyers must ensure TON remains above the crucial $5 level for any chance of pushing towards $6. However, if sellers breach this support level, TON could slip to around $4.72.

### Cosmos (ATOM) Price Analysis

Cosmos (ATOM) is struggling as it trades below its key moving averages. After reaching $5.34 last weekend, ATOM has been on a downward trajectory.

For any upward momentum to take hold, buyers need to push ATOM above the 20-day SMA around $4.70. If bearish sentiment continues, ATOM could drop further towards its support levels.

### Dogwifhat (WIF) Price Analysis

Dogwifhat (WIF) is one of the worst-performing meme coins, down a staggering 24% over the past month and almost 71% from its 52-week high.

WIF began its recent downturn after failing to breach the $2 level on August 24 and has struggled ever since. Sellers have continually thwarted attempts by buyers to regain momentum.

In conclusion, the cryptocurrency market is experiencing significant turbulence with major coins like Bitcoin and Ethereum facing substantial declines amid broader market concerns and upcoming economic data releases from the US Federal Reserve. Investors remain cautious but hopeful for signs of stabilization and recovery in these volatile markets.