Bitcoin (BTC) Returns to $59K as Bulls Fail to Flip Key Resistance; AI Cryptos Lead Losses
- WBOYOriginal
- 2024-08-30 06:12:17810browse
AI-focused tokens such as FET, Render's RNDR and Bittensor's slipped 7%-10% following Nvidia's post-earnings slump.
Bitcoin price dropped below $59,000 on Thursday after failing to breach key resistance levels, while AI-related cryptocurrencies took the brunt of the selling pressure.
The world's largest cryptocurrency was trading at $58,800 at press time and had earlier slipped below $58,000. BTC had risen to highs of $61,000 during Wednesday's session.
The price was last seen attempting to hold support at the 50-4 hour moving average, having breached the 100 moving average earlier in the day. A sustained move below the 50 moving average could open the doors for a deeper sell-off to the 200 moving average, currently at $57,000.
On the higher side, resistance is seen at the 100-4 hour moving average and then at the 200 moving average, currently at $60,000. A convincing move above the 200 moving average could pave the way for a rally to the upper boundary of the price range, currently at $63,000.
Artificial intelligence (AI)-related cryptocurrencies led losses among the major tokens, declining in tandem with chipmaker Nvidia's (NASDAQ:NVDA) 6.4% decline following its quarterly results.
Among the tokens, Render's (RNDR) and Artificial Superintelligence Alliance's (FET) native tokens declined 7%-10% by 08:00 ET (12:00 GMT). Bittensor's {{TAO}} token also slipped 7% for the day.
U.S. stock averages also pared early-session gains, with the tech-heavy Nasdaq last down 0.3% – 40 minutes before the closing bell – after having earlier risen by over 1.5%.
The crypto market had largely mirrored the moves in U.S. equities over the past few sessions, with the correlation having picked up in recent months.
A pseudonymous crypto analyst, Skew, noted that bulls would've needed to push prices past $61,000, above key short-term moving averages on the 4-hour timeframe, to stand a meaningful chance at a rally to the upper side of the range.
The price action suggested that crypto markets were set for further consolidation, as the brisk recovery from early August's drop to sub-$50,000 appeared to be fizzling out.
Bitcoin has been stuck in a downtrend since hitting an all-time high of $73,000 in March, making lower highs and lower lows.
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