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(Kitco News) - The crypto market ended the week flat as Bitcoin continues to consolidate below $29,500 while investors digest the latest inflation data that shows that the cost of living is once again on the rise, especially when it comes to energy costs.
Stocks traded mixed amid the rise in economic uncertainty as traders weigh the prospects of interest rate hikes by the Federal Reserve, which is still struggling to reach its 2% inflation target while there are also signs of disinflation scattered throughout the July reports.
At the closing bell, the S&P and Nasdaq were in the red, down 0.11% and 0.68%, respectively, while the Dow finished up 0.30%.
Data provided by TradingView shows that Bitcoin’s (BTC) trading range continues to narrow, with the top crypto trading between $29,215 and $29,530 on Friday as bulls and bears appear evenly matched in strength.
BTC/USD Chart by TradingView
“September Bitcoin futures prices [were] a bit weaker in early U.S. trading Friday,” according to Kitco senior technical analyst Jim Wyckoff. “Prices continue in a sideways and choppy trading range,” and “Neither the bulls nor the bears have been able to gain much traction in recent weeks.”
Bitcoin futures 1-day chart. Source: Kitco
Based on the support and resistance lines identified on the above chart, Wyckoff said, “The direction in which prices break out above the resistance line or below the support line is likely to be the direction of the next trending price move in the market.”
Market analyst Crypto Tony is leaning towards a break to the downside, warning on Friday that Bitcoin is “hanging [on] by a thread” to the equilibrium level of $29,300.
$BTC / $USD - Update #Bitcoin hanging by a thread on the EQ at $29,300. Once we lose that be prepared for a bigger drop and my short to commence ? pic.twitter.com/SBMaG0myqt
— Crypto Tony (@CryptoTony__) August 11, 2023
Technical analyst Mags is betting on the opposite outcome and used a comparison between a previous dump in BTC price and an inverted chart of the current price action to suggest that “Bitcoin will dump hard,” which on an inverted chart means that its price will actually spike.
#BITCOIN WILL DUMP HARD ??
— Mags (@thescalpingpro) August 11, 2023
If you pay attention to the Left chart after the Cycle Top, price took an aggressive leg down and went into a consolidation phase, where price tested the same support for months before it broke down and dumped from $6000 to $3000.
We are witnessing… pic.twitter.com/f5hMmyQNrj
And market analyst Rekt Capital shared Mags' outlook, noting that while there will be corrections along the way, the current macro uptrend will eventually propel Bitcoin to a new all-time high.
Let's not forget #BTC is in a new macro uptrend
— Rekt Capital (@rektcapital) August 11, 2023
Yes, there will still be corrections
But over time, the macro uptrend will take BTC to new All Time Highs$BTC #Crypto #Bitcoin pic.twitter.com/c9eDG2vqU7
Minimal price action for altcoins
It was a relatively quiet day in the altcoin market as 90% of the tokens in the top 200 traded within 3% of Thursday’s prices. Three tokens still managed to post double-digit gains while the biggest loser, GMX (GMX), fell by 8.2%.
Daily cryptocurrency market performance. Source: Coin360
Livepeer (LPT) was the biggest gainer with an increase of 34% to trade at $6.18, followed by a 14.73% gain for API3 (API3) and an 11.9% increase for UniBot (UNIBOT).
The overall cryptocurrency market cap now stands at $1.17 trillion, and Bitcoin’s dominance rate is 48.8%.
