Focus |Get all the essential market news and expert opinions in one place with our daily newsletter.Receive a comprehensive recap of the day’s top stories directly to your inbox.| ( [Kitco News](/)) – Cryptos trended higher on Wednesday as dip buyers finally arrived to take advantage of price levels not seen since early 2023, a reward for patient traders who know that the volatility of the crypto market means better deals will eventually emerge once momentum dies down.Stocks also climbed higher ahead of Friday’s Jackson Hole speech by Fed Chair Jerome Powell, where he is expected to push back on calls for interest rate cuts and instead emphasize a “higher-for-longer” stance on interest rates to ensure that inflation continues to decline.At the close of markets, the S&P, Dow, and Nasdaq were all in the green, up 1.10%, 0.54%, and 1.59%, respectively.Data from TradingView shows that after trading near support at $26,000 throughout the morning, Bitcoin ( BTC ) saw a boost of momentum in the afternoon that pushed it to a daily high of $26,825, with bulls now looking to extend the gains in an attempt to recover support above $29,000.
BTC/USD Chart by TradingView The early morning price stalemate was reflected in the futures markets, as “September Bitcoin futures prices [were] near steady in early U.S.trading Wednesday, after hitting a 4.5-month low early on,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart.Source: Kitco “A price downtrend line is in place on the daily chart and the bears have power and momentum on their side,” Wyckoff said.“That suggests more downside price pressure in the near term.” According to MN Trading analyst Daan Foppen, last week’s “harsh drop on Bitcoin, and the entire crypto market, came due to the fact that we have very low liquidity in the marketplace.” “There is no volume to trade effectively, all moves are fueled by borrowed money and the interest in crypto is really low,” Foppen said.“All these things simply create a very bad trading environment.” He noted that moves like the sell-off on Thursday tend to make traders eager to “get right back into action and they start looking for longs again, because they think that is the most logical thing to do.” BTC/USD 1-hour chart.Source: MN Trading But this might be a mistake, he warned, as “we are consolidating and to get more confirmations for your trades, it is important to let price create a range.” He advised traders “to be patient here,” and “let Bitcoin pick a side and anticipate on that.” Moving forward, Foppen stressed the importance of paying attention to the high and low of the Bitcoin trading range to determine optimal trades.“If you would like to trade these levels, I would suggest you [wait and see] how price reacts from these levels and anticipate accordingly.” BTC/USDT 30-min chart.Source: MN Trading “Actively trading is quite hard at this point,” he said.“The markets require an extreme amount of patience and we see weird moves due to a lack of liquidity.
We are in hard times, that is for sure, but if you are able to remain strong, then you can reap the rewards in the end.” And following up on his previous warning about a possible double-top formation on the Bitcoin chart, market analyst Rekt Capital said , “As long as ~$26k holds as support then the Double Top will NOT play out.” BTC/USD 1-week chart.Source: X “That said, [it’s] too soon to suggest that the Double Top is over, especially with key resistances (e.g.
bullish momentum moving averages) just above,” Rekt Capital warned.He also noted that “Bitcoin is approaching the bullish momentum moving averages,” as outlined by the red box on the chart above,” and said it’s possible that these previous support levels could “act as resistance in the coming days/weeks.” Green in the altcoin market It was a reversal of fortune for altcoins on Wednesday as all but six tokens in the top 200 traded in the green, with only two tokens recording losses greater than 1.3%.Daily cryptocurrency market performance.Source: Coin360 SafePal (SFP) led the gainers with an increase of 18.9%, followed by a 15.6% gain for Sui (SUI), a 14.1% gain for Livepeer (LPT), and a 13.65% gain for Astar (ASTR).TomoChain (TOMO) was the biggest loser with a drop of 7.25%.The overall cryptocurrency market cap now stands at $1.07 trillion, and Bitcoin’s dominance rate is 48.4%..
