Crypto markets were trading in a tight range on Monday.
According to Bitpush data, BTC fell to the support level of $63,000 that day, and then rebounded slightly. As of press time, the trading price was $63,139, a 24-hour drop of nearly 2%.
Altcoin were generally lower, with only six of the top 200 coins rising by more than 1%. OriginTrail (TRAC) had the largest gain, up 18.3%, followed by Akash Network (AKT) at 8.9% and Helium (HNT) at 7.4%. Among the falling coins, DOGS fell the most, down 26.3%, Sun (SUN) fell 14.6%, and cat in a dogs world fell 13.3%.
The total cryptocurrency market cap is currently $2.21 trillion, and Bitcoin ’s dominance rate is 56.5%.
In the U.S. stock market , at the close, the Dow Jones Industrial Average was flat, while the S&P and Nasdaq fell 0.32% and 0.85%, respectively.
Positive correlation with US stocks
Since hitting a low of $49,053 on August 5, the price of Bitcoin has risen 30%, while U.S. stocks continue to climb to new highs.
Bitfinex analysts said: "Bitcoin's rebound takes place against the backdrop of an increasing positive correlation between Bitcoin and the U.S. stock market. So far, Bitcoin has shown relative weakness against stocks since hitting a low in early August. Friday's rebound has driven a sharp rise in the correlation between the two, which we believe indicates a return to market risk appetite."
“It is a common phenomenon that higher volatility assets move later than lower volatility assets (in this case, equities), with risk-on sentiment evident in the market, encouraged by the imminent rate cuts and the lack of overhang at present, as German law enforcement has fully distributed seized Bitcoin and Mt. Gox’s creditor distribution is also nearing completion,” they noted.
On-chain data shows that there was also a large amount of short liquidations on August 23, with BTC perpetual futures liquidations amounting to $40 million and liquidations across all trading pairs amounting to $140 million, as open interest fell sharply, indicating a reduction in market leverage.
Analysts speculated that: "With the increase in interest in delta-neutral and carry trades, the market's directional open interest has decreased, which may provide more room for Bitcoin and Altcoin prices to rise. The current funding rate is significantly lower than earlier this year, which also indicates that market dynamics have changed. Despite the overall bullish sentiment, leveraged traders have taken a more cautious approach."
Analysts at Secure Digital Markets said that BTC spot trading volumes fell slightly after an initial surge, leading to a downward trend in Bitcoin prices on Monday.
They noted: “The recent recovery in cryptocurrency prices has been aided by a strong expansion of stablecoins, with an average of $1 billion in new tokens minted over a seven-day period. Bitcoin’s open interest is once again approaching the critical resistance level of 180,000 to 190,000 contracts, a level that has historically been associated with sharp market volatility. A pullback to $62,000 could provide a strong buying opportunity for those looking to long.”
TradingView analyst TradingShot said Bitcoin’s sharp rebound from lows below $50,000 bodes well for a positive end to the year.
TradingShot noted: “This week, Bitcoin will end August trading with the 1M candlestick chart not only rebounding strongly on the 1W MA50 (red trendline), but also remaining in the symmetrical pivot area for the 6th consecutive month. This area is crucial because it acted as resistance during the previous cycle in late 2021, and it has been acting as support since the recent breakout in March 2024. The bullish wave on the 2-year channel suggests that $100,000 is within reach after the close of this month.”
Author: BitpushNews Mary Liu
Twitter: https://twitter.com/BitpushNewsCN
BitPush TG Exchange Group: https://t.me/BitPushCommunity
Bitpush TG subscription: https://t.me/bitpush
Btok subscription: https://btok360.com/bitpush
