Bitcoin, Ethereum, Dogecoin Facing Wednesday Woes: 'Correction To $54,500 If BTC Breaks $56,800 Support'

Author: Khyathi Dalal | August 07, 2024 04:23pm

Cryptocurrency markets are down on Wednesday, mirroring broader economic concerns amid geopolitical tensions.

Cryptocurrency	Price	Gains +/-
Bitcoin (CRYPTO: BTC)	$54,933	-2.7%
Ethereum (CRYPTO: ETH)	$2,350.7	-5.2%
Solana (CRYPTO: SOL)	$143.1	-1.3%
Dogecoin (CRYPTO: DOGE)	$0.0961	-0.8%
Shiba Inu (CRYPTO: SHIB)	$0.000013	-4%

Notable Developments:

• Bitcoin Could Dip to $40,000 Amid Market Turbulence: 10x Research
• Trump’s Son Eric Posts Crypto Cliffhanger, Says ‘Big Announcement’ Incoming — Are We Getting A Memecoin For ‘Real’ This Time?
• Bitcoin Defies Bearish Signals As Bank Of Japan’s Stance Reshapes Market Dynamics
• Bitcoin Whales Reportedly Accumulate Nearly $23B Worth Of BTC In A Month: ‘Something Is Happening Behind The Scenes’

Notable Statistics:

• IntoTheBlock data shows a 26.3% decrease in large transaction volume and a 9.5% drop in daily active addresses. Despite price fluctuations, 79% of Bitcoin holders are currently making a profit.
• Coinglass data shows open interest dropped to its lowest level, $26.7 billion, since February 2024.
• Watcher Guru reported that asset manager Morgan Stanley advisors will offer Spot Bitcoin ETFs to clients starting today.
• Santiment data noted that between Aug. 5 and Aug. 6, the highest level of Bitcoin whale transactions was recorded since the first week of April.

Top Gainers:

Cryptocurrency	Price	Gains +/–
Popcat (CRYPTO: POPCAT)	$0.5172	+16.7%
Dogwifhat (CRYPTO: WIF)	$1.57	+10.9%
Sui (CRYPTO: SUI)	$0.6253	+4.2%

Trader Notes: Crypto chart analyst Ali Martinez highlighted a classic rising wedge for Bitcoin. He predicted a correction to $54,500 if the crypto king breaks the $56,800 support. However, if there is a close above $58,000 this pattern and prediction will be invalidated.

This chart shows a classic rising wedge for #Bitcoin. A correction to $54,500 is likely if #BTC breaks the $56,800 support. However, if $BTC closes above $58,000, this pattern is invalidated! pic.twitter.com/p0Dd1fgoHk

— Ali (@ali_charts) August 7, 2024

Glassnode data points out that August is an "exceptional eventful month" for equity and digital asset markets. A "correlation-1" event sparked a major market sell-off and BTC was no exception. This led to a capitulation amongst short-term holders.

Rekt Capital predicts that BTC will need to fall 3.5% from current prices to fill the most recent but much smaller CME Gap ($53,700-$54,600). The trader added that if the CME gap needs to be filled it should be now.

#BTC

Bitcoin would only need to drop -3.5% from current prices to fill the most recent but much smaller CME Gap ($53700-$54600)

It's unclear if this CME Gap needs to get filled given how relatively insignificant it is

Technically, this could still just be a volatile Daily… https://t.co/oDd2vNIHpC pic.twitter.com/dlOLaIdqlY

— Rekt Capital (@rektcapital) August 7, 2024

Crypto trader Kevin sees Bitcoin in a bullish pattern. He added that there are four touches on each end of the falling broadening wedge, which makes this look more defined.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Bitcoin Could Dip to $40,000 Amid Market Turbulence: 10x Research

Image: Shutterstock

Posted In: $BTC $DOGE $ETH $SHIB $SOL