Crypto markets were trading in a tight range on Monday.
According to Bitpush data, BTC fell to the support level of $63,000 that day, and then rebounded slightly. As of press time, the trading price was $63,139, a 24-hour drop of nearly 2%.
Altcoins were generally lower, with only six tokens in the top 200 gaining more than 1%. OriginTrail (TRAC) was the biggest gainer, up 18.3%, followed by Akash Network (AKT) up 8.9%, and Helium (HNT) up 7.4%. Among the losers, DOGS was the biggest loser, down 26.3%, Sun (SUN) down 14.6%, and cat in a dogs world down 13.3%.
The total cryptocurrency market cap is currently $2.21 trillion, and Bitcoin’s dominance rate is 56.5%.
In U.S. stocks, at the close, the Dow Jones was flat, while the S&P and Nasdaq fell 0.32% and 0.85%, respectively.
Positive correlation with US stocks
Since hitting a low of $49,053 on August 5, the price of Bitcoin has risen 30%, while U.S. stocks continue to climb to new highs.
Bitfinex analysts said: "Bitcoin's rebound takes place against the backdrop of an increasing positive correlation between Bitcoin and the U.S. stock market. So far, Bitcoin has shown relative weakness against stocks since hitting a low in early August. Friday's rebound has driven a sharp rise in the correlation between the two, which we believe indicates a return to market risk appetite."
They noted: “It is a common phenomenon that higher volatility assets move later than lower volatility assets (in this case, equities), with risk-on sentiment evident in the market, encouraged by the imminent rate cuts and the lack of overhang at present, as German law enforcement has fully distributed seized Bitcoin and Mt. Gox’s creditor distribution is also nearly complete.”
On-chain data shows that August 23 also saw a large number of short liquidations, with $40 million in BTC perpetual futures liquidations and $140 million in liquidations across all trading pairs, as open interest fell sharply, indicating a reduction in market leverage.
Analysts speculated: "With the increase in interest in delta neutral and funding carry trades, the market's directional open interest has decreased, which may provide more room for Bitcoin and altcoin prices to rise. The current funding rate is significantly lower than earlier this year, which also indicates that market dynamics have changed. Despite the overall bullish sentiment, leveraged traders have taken a more cautious approach."
Analysts at Secure Digital Markets said that BTC spot trading volumes fell slightly after an initial surge, leading to a downward trend in Bitcoin prices on Monday.
They noted: “The recent recovery in cryptocurrency prices has been aided by a strong expansion of stablecoins, with an average of $1 billion in new tokens minted over a seven-day period. Bitcoin’s open interest is once again approaching the critical resistance level of 180,000 to 190,000 contracts, a level that has historically been associated with sharp market volatility. A pullback to $62,000 could provide a strong buying opportunity for those looking to go long.”
Bitcoin’s sharp rebound from lows below $50,000 bodes well for a positive end to the year, according to TradingView analyst TradingShot.
TradingShot noted: “This week, Bitcoin is set to close out August trading with the 1M candlestick not only rebounding strongly on the 1W MA50 (red trendline), but also remaining in the Symmetrical Pivot Zone for the 6th consecutive month, an area that is crucial because it acted as resistance during the last cycle in late 2021, and has been acting as support since the recent breakout in March 2024. The bullish wave on the upside of the 2-year channel suggests that $100,000 is within reach after this month’s close.”
