(Kitco News) – Bitcoin’s (BTC) price was under slight bearish pressure in early trading on Wednesday as financial markets continued to stabilize and recover from Monday’s sharp sell-off, which saw trillions of dollars wiped from the stock and crypto markets.
Data provided by TradingView shows that BTC bulls attempted to push toward $58,000 but were stopped short of their goal by bears, who reversed course and smacked King Crypto back to support at $56,000.
BTC/USD 4-hour chart by TradingView
“Crypto market capitalization is back above $2 trillion, up 1.3% over 24 hours,” noted Alex Kuptsikevich, senior market analyst at FxPro. “On Wednesday, the Crypto Fear and Greed Index retreated from extreme fear territory at 17 (the lowest in over two years) to 29.”
“The sharp declines in Bitcoin and Ethereum (ETH), sustained by the rumblings of falling stock indices since late July, accelerated the formation of a powerful bearish signal – the death cross – as the downward sloping 50-day MA accelerated its decline in recent days, promising to cross the 200-day MA in the next few days,” he added. “Often, this signal triggers a new wave of declines, but now both coins look locally oversold as the financial markets lick their wounds after the recent sell-off.”
BTC/USD 1-day chart by TradingView
“However, even in case of a technical rebound, a return above the 200-day MA would be needed to prove that the bull market has returned,” Kuptsikevich said. “For Bitcoin, that level now stands at $61.5K, and for Ethereum, it is at $3200.”
“Meanwhile, Bitcoin's share of all cryptocurrencies continues to rise, standing at 55.8%, up from 53.7% a month ago and 48.7% a year ago,” he added. “This is normal, as altcoins are obviously in weaker hands at this stage of the market.”
According to TradingView analyst TradingShot, the crypto market is now experiencing volatility that is similar to what was seen in August 2023 “when the market was again in a time of high volatility and was consolidating within a wide margin for a rather long period of time (April 17 2023 - August 21 2023).”
“Back then we stated that a huge rally was in the making and only one week later, the market delivered and BTC rose from 25k to +70k in a span of 6 months,” he said. “It was the unique Bullish Cross on the 3W KTS indicator that only happens once in every Cycle that cemented our bullish projection.”
“BTC is now on a consolidation phase similar not only to the 2023 one (Apr - Aug) but also to the past Cycles that followed the KTS Bullish Cross,” TradingShot observed. “It is noticeable that there are two such consolidation phases in every Bull Cycle and currently we are inside the 2nd.”
“This is strong evidence suggesting that we are about to experience multiple green months in the coming quarters,” he concluded.
Bitcoin OG’s look like they see a similar outlook for the top crypto moving forward as long-term hodlers have bought more than 404,000 BTC in the past 30 days.
JUST IN: Long-term #Bitcoin hodlers have bought $23B $BTC in the past 30 days (+404K BTC)
...and you're worried about Germany, Mt Gox, Celsius ? pic.twitter.com/EyuLTeBItQ— Bitcoin Archive (@BTC_Archive) August 7, 2024
“I'm pretty sure something is happening behind the scenes,” tweeted Ki Young Ju, founder and CEO of CryptoQuant. “404,448 #Bitcoin have moved to permanent holder addresses over the past 30 days, and it's clearly accumulation.”
“So here's what's going to happen,” he said in a follow-up tweet. “Within a year, some entities – whether they're TradFi institutions, companies, governments, or others – will announce that they've acquired #Bitcoin in Q3 2024. And retail investors will regret not buying it because they were worried about the German govt selling, Mt. Gox, or whatever macroeconomic shit was going on.”
At the time of writing, Bitcoin trades at $56,069, a decrease 0.54% on the 24-hour chart.
