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(Kitco News) – Crypto traders welcomed the sight of rising prices on Tuesday after the weakness of the past couple of weeks had many expecting the market to take another leg lower, with multiple analysts warning Bitcoin (BTC) could retest support at $20,000.
While cryptos climbed higher, stocks fell under pressure as investors await this week’s Consumer Price Index (CPI) reading, with many concerned that inflation is once again on the rise as evidenced by nine-month highs in the price of WTI crude and Brent oil. The S&P, Dow, and Nasdaq all closed the day in the red, down 0.57%, 0.05%, and 1.04%, respectively.
Data provided by TradingView shows that Bitcoin reversed course from Monday’s low near $24,900 to climb 6.65% on Tuesday, hitting an intraday high of $26,565 before pulling back to support above $26,000.
BTC/USD Chart by TradingView
The turnaround in price was reflected in the futures market as “September Bitcoin futures prices [were] solidly higher in early U.S. trading Tuesday, on a rebound after hitting a six-month low Monday,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The bulls have much more heavy lifting to do in the near term, to suggest a market bottom is in place,” Wyckoff said. “The bears still have the firm overall near-term technical advantage as a price downtrend line remains in place on the daily chart. There are still no early chart clues to suggest a market bottom is close at hand.”
According to MN Trading founder Michaël van de Poppe, the recent pullback for Bitcoin was a sweep of the lower liquidity, which he said “was quite obvious as we saw a clear reversal upwards since then.”
BTC/USDT 4-hour chart. Source: Twitter
“The more important factor is that Bitcoin reclaimed the 200-week EMA,” Poppe said.
BTC/USDT 1-week chart. Source: Twitter
“If this weekly closes above that area, we’re most likely at the end of the entire correction,” he said. “Even better, we might be at the start of the next bull cycle wave and people could start getting a bit more excited here.”
As for which levels to keep an eye on, Poppe said “The levels at $25,300-25,600 are the absolute bottom levels that Bitcoin must hold, preferably higher. If Bitcoin takes out $26,800, then we’re eager for $30,000 next.”
Altcoins climb higher
All but a dozen tokens in the top 200 recorded gains on Tuesday as the turnaround in BTC price gave traders all the evidence they needed to reengage with the altcoin market.
Daily cryptocurrency market performance. Source: Coin360
Bitcoin Cash (BCH) was the top gainer with an increase of 11.6% to trade at $203.80, followed by an 11.21% increase for Toncoin (TON) and an 11% gain for VeChain (VET). tomiNet (TOMI) was the biggest loser with a decline of 7.5%, followed by a 5.3% loss for SafePal (SFP).
The overall cryptocurrency market cap now stands at $1.04 trillion, and Bitcoin’s dominance rate is 49.1%
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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