Bitcoin, Ethereum, Dogecoin Witness Mid-Week Relief Rally: Trader Suggests 'Avoid Turning $58,300 Into Resistance Over Coming Days'

Author: Khyathi Dalal | September 04, 2024 04:28pm

Cryptocurrency markets are trading relatively flat Wednesday, inching into the green and marking a so-called corrective rally after Bitcoin prices dropped to $56,000 levels earlier in the day.

Cryptocurrency	Price	Gains +/-
Bitcoin (CRYPTO: BTC)	$57,697.89	-0.5%
Ethereum (CRYPTO: ETH)	$2,446.79	-0.2%
Solana (CRYPTO: SOL)	$133.06	+1.5%
Dogecoin (CRYPTO: DOGE)	$0.09781	-0.2%
Shiba Inu (CRYPTO: SHIB)	$0.00001329	+0.3%

Notable Statistics:

• IntoTheBlock data shows a 36.9% increase in large transaction volume and transactions greater than $100,000 increased from 8,962 as of Sept. 2 to 9,458 as of Sept. 3. Exchanges netflows skyrocketed by 526.7%.
• Coinglass data noted 72,105 traders were liquidated in the past 24 hours as total liquidations stood at $192.48 million.
• Bitcoin Archive reported that Japan dropped the maximum tax rate on Bitcoin and crypto from 55% to 20%.

Notable Developments:

• Blockchain Technology Wire Network Designs First Blockchain For AI Agent Economy
• NFT Market In Crisis: 96% Of Digital Tokens Declared ‘Dead’ As Investor Losses Mount
• North Korean Hackers Escalate Crypto Heists, Funds Stolen Double To $1.6B
• Marathon Digital Bitcoin Production Falls 3% In August, Hash Rate Rises 11%: What’s Going On?
• Pro-Bitcoin Attorney John Deaton All Set To Go Head To Head With Skeptic Elizabeth Warren: Crypto Community Cheers His Candidacy

Top Gainers:

Cryptocurrency	Price	Gains +/-
Aave (CRYPTO: AAVE)	$134.89	+10.4%
Starknet (CRYPTO: STRK)	$0.3929	+6%
Internet Computer (CRYPTO: ICP)	$7.58	+5.2%

Trader Notes: While Bitcoin prices are trying to recover above the $57,000 mark, crypto trader Rekt Capital suggests that Bitcoin should avoid "turning ~$58300 into resistance over the coming days."

He noted that the crypto king is only $150 away from a weekly close to reclaiming the black Channel Bottom as support.

#BTC

Depsite the downside deviation in recent days, Bitcoin is only ~$150 away from positioning itself for a Weekly Close to reclaim the black Channel Bottom as support

Needs to avoid turning ~$58300 into resistance over the coming days$BTC #Crypto #Bitcoin https://t.co/8TDyBO9eR1 pic.twitter.com/zIxi4L0Z6q

— Rekt Capital (@rektcapital) September 4, 2024

CrediBULL Crypto calls this price reversal a "relief rally" and if and when his upside targets are met on Bitcoin, it will be time to "take profits on longs and position for potential downside."

He concluded, "Relief before another leg down still makes the most sense to me at this time." Voicing a similar opinion, More Crypto Online terms this a "corrective rally" as Bitcoin's healthy wave is in place now.

The technical analyst added, "If we see a break of resistance and a 5-wave move to the upside, we might have to consider a more bullish interpretation."

Another trader, Kaz The Shadow charts out his plan for the upcoming weeks where he expects to reclaim $64,000 to talk about longing again.

$BTC Plan i'am looking for the next weeks.

Bounce here, get everyone bullish calling again for the 8976th bottom and then hard sell off to $47/44k where I would expect a strong bounce back to ATH.

Reclaim $64k and we can talk about longing again but until then $47k is the way… pic.twitter.com/DWskcMhfXR

— Kaz The Shadow (@KazTheShadow) September 4, 2024

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: 

• Short-Term Bitcoin Holders Are At Risk, While Average Investors Enjoy Profits Despite Bumpy Ride: Analysis

Posted In: $AAVE $BTC $DOGE $ETH $ICP $SHIB $SOL $STRK BTC