Bitcoin slid 3.66% to $46,982 on Monday, August 30. Bulls pumped up the price to $48,696 from $47,370 (61.8% of the decline from $49,385 to $46,700) amid broad-based dollar weakness and upside in US equity benchmarks. By the close, bears pushed to a low of $46,853.
A local downtrend has formed on the hourly TF since August 21, but it should be noted that buyers have been able to defend local highs since August 9: $42,779 (August 5), $43,927 (August 19), $46,250 (August 26), $46,700 (August 31). All bottoms are on the rise, implying that the uptrend still has legs.
Altcoins are exerting some pressure on Bitcoin, which are strengthening against BTC and the dollar. Bitcoin’s domination of the total cryptocurrency market value fell to 42.59%. Ether has retraced to a high of $3,442. Since August 29, it has risen 8.8% to 0.0716 against Bitcoin. If the ETHUSD pair crosses $3,500, then the road to $4,285 will be open for buyers. The question is whether they will be able to keep up the pace.
On Monday, August 30, ether advanced 6.3%, but near the close it tracked Bitcoin 4.75% lower. Such swings form weak price patterns for continued growth. Now we can only hope that when the high is retraced, new market participants will join the buyers, thus strengthening the bullish trend.
By 12:20 GMT Bitcoin was trading at $47,916. The BTCUSD pair is forming curve patterns. Retracement of the decline from $48,696 to $46,700 is 61%. Bears are all set to knock down the price again. Accordingly, bulls need to hold their positions and close the day above $48,800. Resistance is at $48,500.