Bitcoin and the broader crypto market have shown signs of recovery after a price dip in early August. Bitcoin attempts to reclaim $60,000, while Ethereum has surpassed $2,600 as it eyes the $3,000 threshold.
The release of the US CPI inflation data set will likely affect prices in the crypto market. Given that altcoins are more responsive to macro events, some staged a stronger rebound in the early hours of today.
Bitcoin and Ethereum Lead Crypto Market Recovery Attempt
Amid the mild market recovery, Coinglass data reveals that over $177 million in trading positions suffered liquidation. $91 million short trades were liquidated, and approximately $86 million long positions shared the same fate.
Meanwhile, expert estimates suggest the upcoming US CPI data will likely reveal increased inflation, which could affect the Federal Executive’s decision to cut rates. Bitcoin and the broader crypto market could witness more slumps if this happens.
Bitcoin’s price trades between $50,000 and $60,000 after forming a Death Cross last week, signaling a bearish sentiment. However, today’s improved outlook hints at a brief rally ahead before the market reacts to the upcoming CPI data updates.
BTC’s price trades at $59,071, slightly increasing in the past 24 hours. ETH is trading at $2,647, with a 2.4% increase within the same timeframe. However, the rally could be short-lived since the technical indicators are not yet bullish.
One factor limiting Ethereum’s price is a recent whale selloff. The Analytical platform Spot On Chain revealed that a whale deposited 5,000 ETH on the OKX crypto exchange.
A giant whale deposited 5,000 $ETH ($11.6M) to #OKX again 5 hours ago!
This whale had already deposited 38,501 $ETH ($129M) to OKX at ~$3,354 in the past month before the recent dump.
Note that most of this giant’s $ETH came from the wallet “0x60e” which withdrew $ETH from… pic.twitter.com/rKRAbFBjaf
— Spot On Chain (@spotonchain) August 8, 2024
According to the report, this whale previously deposited 38,501 ETH worth $129 million into the OKX exchange, worth approximately $3,354 each.
Most of the whale’s assets came from a wallet that withdrew ETH from the Poloniex crypto exchange between 2016 and 2018. This whale still holds 308,470 ETH worth $759 million across two wallets.
However, the massive fund movement exerted significant selling pressure on Ether, forcing its price into a downtrend.
What Next for Bitcoin and Ethereum?
BTC’s price decline continued after a death cross formed on the daily chart. However, Bitcoin has found critical support at $58,500 as it re-tests the $59,700 resistance level. A break above $59,700 will let Bitcoin rally further to reclaim $60,000.
Bitcoin shows neutral price action, as reflected by the RSI value of 43.38, which indicates a neutral market. Also, BTC is trading below its 50-day and 200-day Simple Moving Averages (SMA), suggesting a bearish reversal ahead.
Based on investor sentiment, buying momentum will likely remain passive in the coming days. Meanwhile, ETH is under pressure from the sellers, forming a large red candle on the daily chart.
ETH’s rally today is likely a short-lived bull trap since a price reversal will likely occur in the coming days.
Ether found support at $2,600 but faces resistance at $2,700. It currently trades below the Median band of the Donchian Channel (DC), which confirms a bearish signal.
Additionally, the RSI, at 39.45, is approaching the oversold region, suggesting potential declines for ETH in the coming days.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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