Make Kitco Your Homepage

BTC price holds support at $21,500, but analysts warn that the overall trend is bearish

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) -

Bitcoin (BTC) and the wider crypto market experienced slight gains on Wednesday, as a relatively uneventful day on the news front kept markets calm ahead of Friday’s Jackson Hole summit.

Data from TradingView shows that an afternoon attempt by Bitcoin bulls to push its price higher was soundly rejected by resistance at $21,900, resulting in a pullback to support at $21,750 marking a 1.14% gain on the 24-hour chart.


BTC/USD 4-hour chart. Source: TradingView

The strong wall of resistance at $21,900 is evidence that bears continue to have the upper hand as noted by Kitco Senior Market Analyst Jim Wyckoff, who said that “Bears have the slight overall near-term technical advantage,” in his morning Bitcoin update, which emphasized that prices have paused this week.

According to Wyckoff, “The pause has also produced a “collapse in volatility,” which suggests a bigger price move is on the horizon. Technical odds favor that bigger move being on the downside.”

Can support hold?

The lackluster breakout attempt by Bitcoin was touched on by independent market analyst Michaël van de Poppe, who posted the following Tweet highlighting the importance of support at $21,500 holding in order to prevent a price move lower.

What Poppe is now looking for is the establishment of a higher low (HL) which would signal that the uptrend remains intact, while a breakdown below $21,500 could lead to a retest of support at $21,100.

A word of caution was offered by Cubic Analytics Senior Market Analyst Caleb Franzen, who posted the following tweet highlighting that the structure on the Bitcoin chart “has been clear for the past 9 months.

From Franzen’s perspective, there’s no sense in getting bullish in the short-term unless this downward trend reverses.

Altcoin market trades flat

The altcoin market, likewise, had a rather uneventful day on Wednesday, with the only real fireworks coming as a result of U.S. President Joe Biden announcing the forgiveness of $10,000 worth of student loans for Federal borrowers. Biden will also cancel up to $20,000 for recipients of Pell Grants.

Daily cryptocurrency market performance. Source: Coin360

The top performers on the day include iExec RLC (RLC), which put on a gain of 22.57%, along with a 9.06% gain for Chilliz (CHZ) and an 8.87% increase in the price of Cosmos (ATOM).

The overall cryptocurrency market cap now stands at $1.117 trillion, and Bitcoin’s dominance rate is 39.9%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.