Bitcoin, Ethereum, Dogecoin Rise Amid Broader Uptick For Risk Assets: Analyst Warns Apex Crypto Yet To See Death Cross After Brief Rally

Major cryptocurrencies rose higher on Wednesday evening as headwinds in traditional markets alleviated and the crypto markets showed signs of calming down, following Monday’s sharp rally.

What Happened: Wednesday’s market movements were influenced by the latest jobs data. According to ADP, there was an addition of 89,000 private payrolls last month, which falls significantly below the Dow Jones forecast of 160,000. Furthermore, this number is also lower than the upwardly revised figure of 180,000 payroll additions reported for August. 

The market participants are eagerly awaiting Friday’s release of September’s nonfarm payrolls data, as it will provide additional insights into the labor market’s strength.

Former FTX CEO Sam Bankman-Fried experienced a clash of perspectives during the second day of his trial. As opening statements unfolded, prosecutors asserted that Bankman-Fried’s empire was constructed upon a foundation of deception, known only by his inner circle. Conversely, his defense countered that he had acted in good faith, partly attributing the responsibility to Caroline Ellison, the former CEO of FTX’s sister trading firm, Alameda Research. 

District Judge Lewis A. Kaplan astutely compared the opening statements to captivating movie trailers, as reported by Inner City Press.

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Currently, the global crypto market capitalization stands at $1.08 trillion, a 0.98% decrease in the last day.

The S&P 500 showed a positive trend, closing at 4,263.75 with a gain of 0.81%. Similarly, the Nasdaq Composite exhibited strong growth, reaching 13,236.01, marking an increase of 1.35%.

Regarding the latest data, Treasury yields experienced a minor decline from their previous highs seen in 2007. Currently, the 10-year Treasury yield stands at 4.735%.

See More: Best Cryptocurrency Scanners

Analyst Notes

Crypto analyst Michael Van de Poppe emphasized the importance of key levels for Bitcoin. Maintaining a position above $27,200 would greatly support further upward momentum. "Holding above $27,200 would be substantial for upward continuation, but preferably is a retest at $26,700-26,900 before we’ll continue the rally to $30,000. Sentiment flipped quite fast."

Crypto trader Nicholas Merten highlights a crucial milestone for Bitcoin (BTC) to confirm a bull market. 

Merten emphasizes that Bitcoin could experience a significant decline if it fails to break out of its current trading range, which has persisted for approximately six months.

According to Merten, Bitcoin must surpass the $28,000 to $32,000 channel, which previously acted as a support level during the last bull market and might now be serving as resistance. Since April, Bitcoin has been exhibiting a trading pattern aligned with this range.

"If we come up here to $31,000 again, like we did back in April, like we did in June and July and we don't have the follow-through to get up and set new relative highs and clear through this resistance at $32,500, then we are likely going to roll back down."

About a month ago, Benjamin Cowen pointed out that prior to the BTC death cross, there was a possibility of a rally leading up to it.

"Too early to know definitively, but this scenario has been playing out, so probably worth considering."

In the context of cryptocurrencies, a death cross is a bearish signal that occurs when the short-term moving average, such as the 50-day MA, drops below the long-term moving average, like the 200-day MA. This pattern suggests a potential downward movement in the crypto’s price and may influence traders to consider selling their holdings.

https://twitter.com/intocryptoverse/status/1709219336068513845

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