Stocks see new record highs as crypto falters, analyst warns of Bitcoin pullback to $59k
(Kitco News) – Volatility remains the name of the game in the crypto market as Thursday saw Bitcoin’s (BTC) price chop in a range between $64,840 and $68,230 while the broader altcoin market traded mixed.
Stocks, meanwhile, continued to rally higher, with the S&P 500 and Nasdaq establishing new record highs early in the trading day. The moves higher come in response to the Federal Reserve announcing that while they plan to delay rate cuts, they still see three cuts coming in 2024.
At the closing bell, the S&P, Dow, and Nasdaq finished in the green, up 0.32%, 0.68%, and 0.20%, respectively.
Data provided by TradingView shows that after spiking above $68,000 in the early hours on Thursday, Bitcoin chopped its way lower, bottoming out at $64,840 and trading at $65,200 at the time of writing, a decline of 0.95% on the 24-hour chart.
BTC/USD Chart by TradingView
According to market analyst CrediBULL Crypto, the recent price action has been playing out as expected, with Bitcoin rejecting from the red zone in the chart below.
“If we can hold a higher low into the green zone then there is a chance our bottom is in,” he said. “Lose it, and we take the lows at 59k. At the moment, both are viable scenarios.”
Derivatives trader Inmortal highlighted two potential long plays, including an entry at a new higher low in the range of $63,000 to $65,000, or once a breakout is confirmed above $68,000.
If you are looking for longs on $BTC, there are two logic entries.
1. Buy a potential new HL (63-65k)
2. Buy a Break in MS above 68kCrystal clear. pic.twitter.com/VmND0i1pC1
— Inmortal (@inmortalcrypto) March 21, 2024
And market analyst DonAlt noted that “$68k was an excellent [low time frame] short,” and said that Bitcoin now trades in “the last place where bulls [can] make a stand.”
“They can try for an inverse head and shoulders,” DonAlt said. “If that fails the only support left is $61k and I think that wouldn’t hold another test.”
Mixed trading in the altcoin market
Altcoins traded mixed on Thursday, with the top 200 tokens evenly split between winners and losers.
Daily cryptocurrency market performance. Source: Coin360
Stablecoin-focused protocol ReserveRights (RSR) led the gainers with an increase of 45.9%, followed by a gain of 28.3% for Ondo (ONDO), and 19.6% for Centrifuge (CFR). Space ID was the biggest loser with a decline of 35.4%, while 0x Protocol (ZRX) fell 27%, and MANTRA (OM) lost 17.7%.
The overall cryptocurrency market cap now stands at $2.47 trillion, and Bitcoin’s dominance rate is 51.6%.
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