Bitcoin Declines to $59,000 as Bulls Fail to Flip Key Resistance, AI Cryptos in The Red
Bitcoin failed to sustain its rally during Thursday's US trading session, slipping below $59,000 after rallying above $61,000 earlier. This market-wide volatility also impacted AI tokens, which recently rallied following Nvidia's remarkable Q2 earnings report.
The price of AI-backed projects such as FET, Bittensor (TAO), and Render (RNDR) declined by 7%-10% over the past day. This downturn coincides with a 6.4% decline in Nvidia's stock, NVDA.
BTC, AI-Backed Tokens Experience Price Volatility Reflecting Market TurbulenceUS stocks also shed gains led by Nasdaq, among other products, before the end of the US trading session. The price volatility in the stock market spilled over to the crypto market, resulting in a general price decline.
US Stocks Set to Recover From Wednesday Decline
US stock futures rose on Thursday, with S&P 500 and Nasdaq-100 futures up about 0.2% each, and Dow Jones futures climbing over 200 points. Nvidia shares dipped le...
More here: https://t.co/t5tNk3mpX5 pic.twitter.com/NsUtNvy33g
- TRADING ECONOMICS (@tEconomics) August 29, 2024
AI-backed tokens such as RNDR and FET lost their early-week price gains and entered a volatile phase. Market leader Bitcoin also suffered the same, shedding off its recent gains to trade below $60,000
However, crypto analyst Skew believes that Bitcoin must lead the recovery charge. He says buyers must move Bitcoin's price above vital short-term moving averages provided in the four-hour timeframe.
$BTC 4H
Crucial hours ahead for systematic confirmations on trendso far there's a backtest of 4H EMAs here & RSI
typically 4H systematic trend tends to dominant & respectful flows come in later
still need to see more from buyers to get confirmations to target $70K
-... pic.twitter.com/h7ANciSvFs- Skew (@52kskew) August 29, 2024
Although Skew's technical analysis looks advanced, the chart suggests that Bitcoin is entering a consolidation phase.
Bitcoin's downtrend persists despite recent attempts at a recovery rally, defeating efforts to reclaim the $73,000 threshold attained in March. Skew noted that buyers must show more interest before Bitcoin can reclaim the $70,000 price target.
Meanwhile, in an August 30 X post, crypto analyst Ali Martinez revealed that major players have been accumulating Bitcoin amid the recent dip.
Seems like some major players bought the #Bitcoin dip! On-chain data from @santimentfeed reveals a 40,000 $BTC drop in exchange supply over the past 48 hours, equivalent to about $2.40 billion. This aligns with a notable surge in exchange outflows! pic.twitter.com/9ZS8yrwFrI
- Ali (@ali_charts) August 30, 2024
Santiment data shows approximately 40,000 BTC worth around $2.4 billion was withdrawn from exchanges in the past two days. This increased outflow from exchanges could hint at a rally ahead for crypto assets.
However, Bitcoin's price remains volatile today, with the top cryptocurrency shedding some of its price gains. As of 9:34 a.m. EST, BTC trades at $59,538, slightly declining in the past 24 hours after rallying above $61,000.
Bitcoin Reflects General Market Price Volatility, What Lies Ahead?Bitcoin declined between August 26 and 28 as short-term holders cashed in on their open positions. BTC found critical support at the $58,500 support level, attempting a rally on August 28. Bitcoin faced rejection at $60,000, forcing it to trade at the $59,000 price level.
However, trades below the Parabolic SAR indicator, a bearish signal suggesting further price decline ahead. The RSI indicator is in the neutral zone with a value of 45.17. This implies that Bitcoin has insufficient momentum to break above $60,000.
So, it will likely trade in the 58,500-59,000 price range in the coming days until more buyers open long positions.
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