[Comparative Daily Market News] BTC fluctuated within a narrow range, and the $64,000 support level was tested

The crypto market fluctuated in a narrow range on Monday.

Comparative data shows that BTC once fell to the $63,000 support level on the same day, then rebounded slightly. At press time, it was trading at $63,139, down nearly 2% in 24 hours.

Altcoins were lower overall, with only six of the top 200 tokens rising by more than 1% in market capitalization.originTrail(TRAC) saw the biggest increase of 18.3%, followed byAkash Network(AKT), up 8.9%Helium(HNT) rose 7.4%. Among the currencies that fell, DOGS dropped the most, falling 26.3%, Sun (SUN) falling 14.6%, and Cat in a Dogs World falling 13.3%.

Currently, the total cryptocurrency market capitalization is $2.21 trillion, and Bitcoin's dominance rate is 56.5%.

In terms of US stocks, the Dow Jones index was flat at the close, while the S&P index and the Nasdaq index fell 0.32% and 0.85%, respectively.

Correlated with the positive results of US stocks

Since hitting a low of $49,053 on August 5, the price of Bitcoin has risen 30%, while US stocks have continued to climb to new highs.

BitfinexAnalysts said:“Bitcoin's rebound occurred against the backdrop of a growing positive correlation between Bitcoin and the US stock market. So far, since hitting a low in early August, Bitcoin has shown relative weakness compared to stocks. Friday's rebound drove a sharp rise in the correlation between the two, which we believe indicates a return to risk appetite in the market.”

They stated:“Compared to less volatile assets (stocks in this case), it is common for more volatile assets to move late. The market clearly shows a risk appetite. This is encouraged by the impending interest rate cut and the current lack of unresolved factors, as German law enforcement has fully distributed the seized bitcoins, while Mt. Gox's creditor allocations are also nearing completion.”

On-chain data shows that there was also a large number of short liquidations on August 23. The settlement amount for BTC perpetual futures was 40 million US dollars, and the settlement amount for all trading pairs was 140 million US dollars. This was due to a sharp drop in open contracts, indicating a decrease in market leverage.

Analysts speculated: “As interest in delta neutral and financing arbitrage transactions increases, the market's directional open positions decrease, which may provide more room for Bitcoin and altcoin prices to rise. The current funding rates are significantly lower than earlier this year, which also indicates changes in market dynamics. Despite the overall high level of bullish sentiment, leveraged traders have taken a more cautious approach.”

According to Secure Digital Markets analysts, BTC spot trading volume declined slightly after an initial surge, leading to a downward trend in Bitcoin's price on Monday.

They pointed out, “The recent recovery in cryptocurrency prices has benefited from the strong expansion of stablecoins, with an average of $1 billion in new tokens being minted in seven days. Bitcoin's open positions are once again approaching the key resistance level of 180,000 to 190,000 contracts, a level that has historically been associated with sharp market fluctuations. A pullback to $62,000 could provide a strong buying opportunity for those looking to go long.”

TradingView analyst TradingShot said that Bitcoin's sharp rebound from a low below $50,000 indicates that the year will end on a positive note.

TradingShot stated, “This week, Bitcoin will end August trading. The 1M candle chart not only rebounded strongly at the 1W MA50 (red trend line), but remained in the symmetric pivot area for 6 consecutive months. This area is critical because it acted as a resistance level during the previous cycle at the end of 2021, and it has been a support level since the most recent breakout in March 2024. The bullish wave on the 2-year channel indicates that $100,000 is within reach after the close of the month.”

Author: BitPushNews Mary Liu

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