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(Kitco News) - The cryptocurrency market recouped some of its losses from Wednesday’s late afternoon sell-off in Thursday trading as investors brushed off the Federal Reserve’s “hawkish pause” comments to take advantage of deeply discounted token prices.
Stocks rallied higher after the latest economic data showed that the economy is performing better than feared, especially when it comes to consumer spending. At the closing bell, the S&P, Dow and Nasdaq were all in the green, finishing the day up 1.22%, 1.26%, and 1.15%, respectively.
Data provided by TradingView shows that after Bitcoin (BTC) hit a low of $24,840 in the early hours on Thursday, the top crypto staged a comeback, rising to a high of $25,605 in the afternoon, with bulls now looking to continue to push its price higher and make up for lost ground.
BTC/USD Chart by TradingView
Wednesday’s market-wide pullback resulted in July Bitcoin futures prices hitting a three-month low in early U.S. trading on Thursday, according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The BC bears have the overall near-term technical advantage and have gained more power late this week,” Wyckoff said. “A price downtrend is firmly in place on the daily bar chart. The path of least resistance for prices is sideways to lower.”
On Wednesday, Veteran trader Peter Brandt issued a warning that the near-term outlook was showing signs of weakness and pointed to the formation of a “Hinge” on the BTC chart. “Four closes within 3/10th of 1% range. This is the definition of price equilibrium. ‘Hinge’ behavior,” he said.
BTC/USD 1-day chart. Source: Twitter
A “hinge” is a term used by investors to describe the moment when a significant trend reversal of a digital asset is about to occur.
Brandt followed up with another tweet on Thursday – after the price dump – highlighting that BTC price is “Hinged to [the] downside for now.”
BTC/USD 1-day chart. Source: Twitter
Market analyst Caleb Franzen provided additional insight into the weakening bull case, highlighting the various technical indicators that the price of Bitcoin has fallen below.
If we can reclaim these levels, then the bull case strengthens.
— Caleb Franzen (@CalebFranzen) June 14, 2023
Notice how I'm flexible and willing to adapt with changing data?
And a macro perspective on where Bitcoin is at compared to previous cycles was provided by technical analyst Gert van Lagen, who noted that Bitcoin is currently retesting the neckline of an inverse head and shoulder pattern.
$BTC's price action since 2013 ATH:
— Gert van Lagen (@GertvanLagen) June 15, 2023
1. Bear market
2. Forms H&S Bottom, Head tests 200-week SMA
3. Breaks above neckline
4. Retests neckline for a few months
5. Breaks ATH
6. Blows off
REPEAT
Currently at 4??#Bitcoin pic.twitter.com/hb4NKPQEQj
Altcoins stabilize
The broader altcoin market traded mixed, with the top 200 tokens evenly split between winners and losers.
Daily cryptocurrency market performance. Source: Coin360
The top gainers for the day were Decred (DCR), Ocean Protocol (OCEAN), and Band Protocol (BAND) with price increases of 14.1%, 12.5%, and 11.2%, respectively.
The overall cryptocurrency market cap now stands at $1.034 trillion, and Bitcoin’s dominance rate is 47.7%.
