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(Kitco News) - Consolidation continued for the crypto market on Tuesday as Bitcoin (BTC) bulls held the line at $29,200 while Dogecoin (DOGE) traded up more than 10% after seeing a boost in trading activity in the wake of Elon Musk adding the DOGE symbol (Ð) to his X profile.
Stocks climbed higher as the July Federal Open Market Committee (FOMC) meeting started, and with expectations that the Federal Reserve will raise interest rates by 25 bps, it's likely that the forthcoming announcement has already been priced into the market, and only a deviation from expectations will result in a noticeable effect on asset prices.
Data provided by TradingView shows that Bitcoin’s price crept higher on Tuesday after initially falling to a low of $29,165 in the early hours, hitting a daily high of $29,480 in the afternoon before pulling back to support at $29,300.
BTC/USD Chart by TradingView
August Bitcoin futures prices traded slightly higher in early U.S. trading according to Kitco senior technical analyst Jim Wyckoff, who noted that “futures prices hit a four-week low on Monday.”
Bitcoin futures 1-day chart. Source: Kitco
“Prices are in a fledgling downtrend on the daily bar chart,” Wyckoff said. “Bulls have faded and have lost their near-term technical advantage.”
Mike McGlone, senior macro strategist at Bloomberg Intelligence, warned that after increasing “15% year over year to July 24, the S&P 500, Copper and Bloomberg Galaxy Crypto Index could contend with greater headwinds in the next 12 months.”
“It’s the potential for a Fed pivot that may be a key determinant of performance,” McGlone said. “That the rising stock market has coincided with rate-hike expectations might portend a lose-lose for risk assets."
“Cryptos are among the riskiest, and if our view for a severe economic reset plays out, highly speculative digital assets may be a leading indicator,” he concluded.
Crypto analyst Cheds told his Youtube subscribers that he sees a possibility that Bitcoin could retest the $27,500, $28,000, and $28,500 support levels before a continuation occurs.
“I think we do see most likely a slow grind up in price,” Cheds said, before adding that there’s a 70% chance that Bitcoin will retest the $28,000 price range, calling it the “most likely scenario.”
Mixed performance for altcoins
The top 200 tokens in the altcoin market were evenly split between winners and losers amid a 27.6% decline in the 24-hour trading volume as traders await tomorrow's FOMC announcement.
Daily cryptocurrency market performance. Source: Coin360
XDC Network (XDC) led the gainers with an increase of 11.17%, followed by a 10.2% increase for Dogecoin (DOGE) and 9.5% gains for Kyber Network Crystal v2 (KNC) and Theta Fuel (TFUEL).
The overall cryptocurrency market cap now stands at $1.17 trillion, and Bitcoin’s dominance rate is 48.4%.
