Bitcoin Returns to $59K as Bulls Fail to Flip Key Resistance; AI Cryptos Lead Losses

Bitcoin's {{BTC}} attempt for a bounce faded yet again during Thursday's U.S. trading session, the price breaking back below $59,000 after climbing above $61,000 earlier.

BTC was still holding on some of its gains over the past 24 hours, up 0.6%, in line with the broad-market CoinDesk 20 Index. Ether {{ETH}} was down 0.5%, barely holding above the $2,500 price level.

Artificial intelligence focused cryptocurrencies led losses, dragged lower by chip making giant Nvidia's (NVDA) 6.4% slide after reporting quarterly results Wednesday evening. Native tokens of Render {{RNDR}}, Artificial Superintelligence Alliance {{FET}} and Bittensor {{TAO}} were lower by 7%-10% for the day.

U.S. stocks also gave up early-day gains, led by the tech-heavy Nasdaq, lower by 0.3% 40 minutes before the closing bell after being higher by more than 1.5% earlier.

Bulls would have needed to push prices past $61,000, above key short-term moving averages on the 4-hour timeframe, to have a meaningful odds to rally to the upper side of the range, pseudonymous crypto analyst Skew pointed out.

$BTC 4H
Crucial hours ahead for systematic confirmations on trend

so far there's a backtest of 4H EMAs here & RSI

typically 4H systematic trend tends to dominant & respectful flows come in later

still need to see more from buyers to get confirmations to target $70K
-… pic.twitter.com/h7ANciSvFs

— Skew Δ (@52kskew) August 29, 2024

The price action suggests that crypto markets are in for more consolidation as the quick recovery from the early August plunge to below $50,000 continues to fizzle. The largest crypto has stuck in a downtrend since its all-time record of $73,000 in March, making lower highs and lower lows ever since.