Bitcoin Takes a Hit: ‘Sell on Rise’ Pattern Persists, Price Plummets to Mid-$56K Range
Cryptocurrency Market Trends Sideways Amid Economic Concerns
The cryptocurrency market is experiencing a period of sideways movement, with prices slightly lower than the previous day ahead of the New York Stock Exchange opening on the 5th. Bitcoin is currently trading in the mid-$56,000 range.
Yesterday, the market attempted a rebound, with Bitcoin briefly reclaiming $58,000 during New York and early Asian trading hours. However, it failed to maintain momentum and fell back to the lower end of its recent range. CoinDesk described Bitcoin’s recent moves as a continuation of its “sell on the upside” pattern.
Concerns over the health of the U.S. economy have been reignited after job openings in July fell to 7.67 million, below the Dow Jones forecast of 8.1 million and the lowest level since January 2021. As a result, risky assets such as cryptocurrencies and stocks are under pressure across the board.
Uncertainty surrounding the US presidential election and geopolitical tensions continue to weigh on market sentiment. In addition, the potential for additional liquidation of yen carry trades due to the potential further appreciation of the Japanese yen is also negative for risk assets. Continued outflows from Bitcoin and Ethereum spot ETFs listed on US stock exchanges are further weighing on market sentiment.
The new catalyst that will move the cryptocurrency market in the short term is the US non-farm payrolls report for August, which will be released on Friday (the 6th). The Federal Reserve’s September rate cut is certain, but the extent of the rate cut and the pace of future monetary policy easing are likely to be determined by economic data such as the non-farm payrolls report. If the August employment report is weaker than expected, following July’s, concerns about a US recession will increase significantly, and the Fed’s rate cut could be larger.
As of 8:22 am on the 5th, New York time, the cryptocurrency market capitalization on CoinMarketCap was $1.99 trillion, up 0.27% from 24 hours ago. However, compared to the closing time of the New York Stock Exchange the previous day, it decreased by $40 billion. The 24-hour trading volume of the cryptocurrency market was $63.1 billion, down 11.14%. Bitcoin dominance was 56.2%, and Ethereum dominance was 14.4%. The fear and greed index of the cryptocurrency market continued from the previous day at 34, indicating fearful sentiment.
At this time, Bitcoin is down 0.14% from 24 hours ago, at $56,509 on CoinMarketCap. Bitcoin recovered $58,000 the previous day during New York hours. Bitcoin is in a correction after hitting an all-time high of $73,750.07 on March 14. Ethereum is down 0.68% to $2,383. Ethereum’s all-time high was $4,891.70 on November 16, 2021.
Other altcoins in the top 10 by market cap are all up over the past 24 hours: BNB up 0.91%, Solana up 3.11%, XRP up 0.22%, Dogecoin up 2.11%, Tron up 0.67%, and TON up 1.51%.
Bitcoin futures for September delivery on the Chicago Mercantile Exchange (CME) fell 2.55% to $56,865, October futures fell 2.78% to $57,150, and November futures fell 2.61% to $57,710. Ethereum for September delivery fell 2.64% to $2,401.50, and October futures fell 2.46% to $2,420.00.
The dollar index fell 0.18% to 101.18, according to Wall Street Journal data. The yield on the 10-year Treasury note fell 1.3 basis points to 3.746%. A decline in the yield on safe-haven Treasury bonds means rising bond prices.