Cryptocurrencies Price Prediction: Ethereum, Bitcoin & Polygon – European Wrap 2 September

Crypto Today: Bitcoin, Ethereum, XRP amid healthy stablecoin liquidity, moderate capital inflows

Bitcoin (BTC) shows subtle signs of strength following a rebound above $110,000 on Tuesday as traders look out for a macroeconomic lifeline ahead of the United States (US) Federal Reserve's (Fed) September interest rate decision. Ethereum (ETH) and Ripple (XRP) are extending their consolidation as optimism builds for a bullish breakout.

Federal Reserve officials will closely monitor key inflation indicators, including the unemployment rate on Friday, the Producer Price Index (PPI) on September 10, the Consumer Price Index (CPI) and Jobless Claims on September 11, when assessing the US economic standpoint ahead of the September 17 interest rate decision.

Bitcoin Price Forecast: BTC recovery strengthens as RSI signals bullish divergence

Bitcoin (BTC) price is extending its recovery, trading above $110,000 at the time of writing on Tuesday after facing a pullback of nearly 5% last week. On-chain data indicate a rare shift, with long liquidations surpassing shorts by approximately $7 million. Meanwhile, a bullish Relative Strength Index (RSI) divergence on the BTC 4-hour chart suggests the largest cryptocurrency by market capitalization may be approaching a reversal or preparing for a short-term rally.

Bitcoin price shows some signs of relief so far this week, ending three consecutive weeks of retracement from its record high of $124,474. This price correction of nearly 14% from its record high to the August low of $110,680 has triggered a massive liquidation in traders' positions. 

Polygon Price Forecast: POL strengthens on bullish on-chain data

Polygon (POL) ex-MATIC trades in green, above $0.28 at the time of writing on Tuesday, after finding support around a key zone earlier this week. Strengthening on-chain metrics further support the rally continuation with rising Open Interest (OI) and stablecoin market capitalization, alongside growing dominance, over non-USD stablecoins. The technical setup suggests POL could rally beyond the $0.33 mark if momentum holds.

Futures’ OI in Polygon at exchanges rose from $115.46 million on Friday to $177.29 million on Monday, the highest level since December 10 and has been consistently rising. Rising OI represents new or additional money entering the market and new buying, which could fuel the current POL price rally.