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(Kitco News) – The broader crypto market entered a consolidation Wednesday as bitcoin (BTC) continues to trade within the $23,000 support level area — where it has traded sideways since Jan. 21 — prompting crypto traders to scale their To draw attention to the altcoin market.
In traditional markets, the prevailing trend has been negative as major indices came under pressure, while shares in Google fell 8% after its new AI search assistant Bard gave a wrong answer contained in promotional material. At the close in the US, the S&P, Dow and Nasdaq all ended lower, down 1.11%, 0.61% and 1.68%, respectively.
Data provided by TradingView shows Bitcoin got off to a hot start to the day, rallying to a high of $23,436 in the early hours of trading, only to undergo an intraday swing of 3.2% and a low of 22,685 $ before the bulls managed to bid it back up to $22,900.
BTC/USD 4 hour chart. Source: TradingView
“The price uptrend on the daily bar chart has stalled,” according to Jim Wyckoff, senior technical analyst at Kitco, who added that “the bulls still have the technical advantage in the near term but will need renewed strength soon to sustain the price uptrend alive.”
Analysts at Eight Global also noted the sideways price action for Bitcoin in their market update on Wednesday, emphasizing that “BTC has been consolidating around the $22,000-$24,000s for over two weeks without really giving any clear signals as to where it wants to go “.
Despite the sideways trend, analysts remain bullish on where BTC will head in the future, stating, “It’s fair to say that as long as the price makes higher lows and higher highs, the trend is up and we can therefore assume that that the price will continue to move up from here.”
Most notably, Eight Global emphasized that as a trader, you “always want to trade with the trend,” which “means opening long positions when price is in an uptrend and short positions when price is in one downtrend”.
For now, Bitcoin remains in an uptrend, but in the event BTC makes a lower low, “we’re likely to see a quick retracement as we’ve built little support on the way up due to the impulsive moves,” Eight Global warned.
Crypto trader Daan Crypto Trades summed up what many analysts believe to be the best course of action in the following tweet, stressing that now is a good time to practice the skillful art of patience.
$BTC mid range at POC with next liquidity levels above $500 away in either direction.
Good time to relax and wait patiently. pic.twitter.com/v8KI0s2Gyd
— Daan Crypto Trades (@DaanCrypto) February 6, 2023
Altcoin market consolidated
Most of the altcoin market also entered consolidation Wednesday after several weeks of significant price gains that helped push the total market cap back above $1 trillion.
Daily performance of the cryptocurrency market. Source: Coin360
OriginTrail (TRAC) saw the biggest gain of the day, rising 50.89% to $0.44, while Axelar (AXL) was up 17.36% and BinaryX was up 16.28%. Recently high-flying artificial intelligence-related projects SingularityNET (AGIX) and The Graph (GRT) saw notable corrections, with their prices falling 17.24% and 20.63%, respectively.
The total cryptocurrency market cap is now $1.069 trillion and Bitcoin’s dominance rate is 41.3%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.
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