Originally published on: September 04, 2024
Bitcoin experienced a downward trend on September 4 amid the ongoing reaction of crypto markets to a sharp decline in United States tech stocks.
Bitcoin’s Decline and Recovery
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin hit a low of $55,602 on Bitstamp, marking its lowest point since August 8. Despite a significant recovery of up to 40% following the August crash, BTC/USD began to trend downwards again towards the $50,000 mark.
Tech Stock Woes and Market Impact
Unlike previous market reactions tied to Japanese stock performance, this time the setback was triggered by a U.S. tech giant, Nvidia. A subpoena from U.S. authorities led to a sharp decline in Nvidia’s stock price, causing a ripple effect across risk assets. Even gold, which recently reached an all-time high above $2,500, experienced a 1.3% drop on September 3.
Market Reactions and Analysis
Japan’s Nikkei 225 index also took a hit, dropping by 4.2% during the Asia trading session on September 4, adding further pressure on Bitcoin and alternative cryptocurrencies.
Crypto Traders’ Sentiments
Several cryptocurrency traders provided insights into Bitcoin’s price behavior amid the market turmoil. CrypNuevo highlighted ongoing candle wick filling activities, setting short-term targets around $51,500. Meanwhile, Jelle pointed out a potential bullish divergence for Bitcoin as it tested key support levels, suggesting the possibility of a reversal.
Market Volatility Ahead
Data from monitoring platform CoinGlass revealed total crypto long liquidations totaling $200 million in the 24 hours leading up to the recent market dip, indicating significant market volatility. Trading firm QCP Capital also hinted at increased volatility, signaling a potentially turbulent period for both Bitcoin and Ethereum.
Conclusion
It is essential to note that this article does not offer investment advice. Readers are encouraged to conduct thorough research and exercise caution when making financial decisions in the volatile cryptocurrency market. Stay informed and vigilant during uncertain times in the market.
