Bitcoin Dips, but Ethereum, XRP, Dogecoin Gain Even as 'Greed' Prevails: Analyst Says 'Loss of Stability' Could Erase BTC Gains
Leading cryptocurrencies held firm on Wednesday as investors digested the latest inflation data and expectations of another rate hike.Cryptocurrency24-Hour Gains +/-Price (Recorded at 9:30 p.m. EDT)Bitcoin -0.20%$83,561.41Ethereum +0.30%$2,689.97XRP +0.10%$1.49Solana -0.90%$118.35Dogecoin +0.70%$0.09507Cryptocurrencies Hold Their LevelsBitcoin hit an intraday high of $85,518 in the early hours, then pulled back to the $83,000 range by evening. Ethereum consolidated between $2,650 and $2,730.Cryptocurrency-related stocks dipped further, with Strategy Inc. and Bitmine Immersion Technologies Inc. closing down 1.02% and 1.12%, respectively.Over $260 million was liquidated from the cryptocurrency market in the last 24 hours, with longs and shorts accounting for roughly equal shares, according to Coinglass data.Bitcoin’s open interest rose 0.92% over the last 24 hours. When open interest rises while the asset’s price falls, it typically signals a short buildup, as new sellers enter the market."Greed sentiment prevailed in the market, according to the Crypto Fear & Greed Index.Top Gainers (24 Hours)CryptocurrencyGains +/-Price (Recorded at 9:30 p.m. EDT)Midnight (NIGHT) +22.60% $0.03994Stacks (STX) +20.30% $0.3833World (WLD) +9.60% $0.5421 Read Also: Stocks Slip Even as Inflation Slows DownStocks were a mixed bag on Monday. The Dow Jones Industrial Average shed 0.86%, or 443.87 points, to close at 50,906.05. The S&P 500 fell 0.25% to close at 7,651.54. Nasdaq Composite bucked the decline, rebounding 0.24% to end at 26,861.06.August’s personal consumption expenditures price index rose 0.3% month-over-month, Headline PCE inflation held at 3.4%, matching July’s revised reading and below the 3.7% consensus.Traders are now pricing in a 38% chance of another 25-basis-point rate hike next month, down from 50% the day before, according to the CME FedWatch tool.Bitcoin Still Not Out of the Woods?Rekt Capital, a widely followed cryptocurrency analyst and trader, stated that Bitcoin needs to show stability above the low $80,000s for “additional trend continuation to the upside.”“Loss of that stability would see price revert into the $60,000-$80,000 Macro Range for additional consolidation there,” the analyst added.The crucial retest appears to be successful thus far (black circle)Bitcoin will need to continue to demonstrate stability above the lows $80,000s if it wants to remain positioned for additional trend continuation to the upside over timeLoss of that stability would see… On-chain analytics firm CryptoQuant noted that Bitcoin’s 90-day Buy/Sell Pressure indicator has returned to a zone associated with “stronger buying pressure,” though still below the higher levels seen during “stronger expansions.”“If the delta stalls near its current level and rolls over while price pushes higher, the divergence would suggest that the rally is losing support,” CryptoQuant added. “A continued rise in the delta…would strengthen the case for a durable trend.”The Buy Pressure Recovery Has Reached a Decision Point"If the delta stalls near its current level and rolls over while price pushes higher, the divergence would suggest that the rally is losing support." – By Read Also: Photo Courtesy: Sodel Vladyslav on Shutterstock.com