Bitcoin price targets include $50K as Nvidia crash shakes Nikkei, gold
2024.09.04 05:07
Bitcoin (BTC) neared monthly lows on Sept. 4 as crypto markets continued to react to a United States tech stock rout.
BTC/USD 4-hour chart. Source: TradingView
Nvidia woes spill over to BTC price
Data from Cointelegraph Markets Pro and TradingView confirmed lows of $55,602 on Bitstamp — a level not seen since Aug. 8.
After recovering as much as 40% from its August crash, BTC/USD thus began to backfill downside candle wicks toward $50,000.
This time, however, the impetus was not Japanese stock market performance, but tech giant Nvidia. A US subpoena sent the firm’s stock price tumbling, and risk assets were quick to follow suit.
Gold, which just weeks ago set a new all-time high above $2,500, shed up to 1.3% on Sept. 3.
XAU/USD 4-hour chart. Source: TradingView
Japan’s Nikkei 225 nonetheless saw its own snap reaction to the previous day’s losses, dropping 4.2% during the Sept. 4 Asia trading session and adding pressure to Bitcoin and altcoins.
“September has commenced with a widespread rush to the sidelines,” trading resource The Kobeissi Letter wrote in part of its latest commentary on X.
Source: The Kobeissi Letter
Analyzing BTC price behavior, popular trader CrypNuevo spelled out the ongoing candle wick filling exercise underway, with short-term targets extending to $51,500.
“7-days liquidations hit at $57k, and $56.6k (4h) long wick filled. Run for liquidity and wick fill projection completed,” he wrote.
“Watching for a potential bounce around this area. And if lost, we’ll fill the daily wick at $51.5k.”
BTC/USDT chart (screenshot). Source: CrypNuevo/X
Fellow trader Jelle saw similar potential for a reversal.
“Sweep + potential 12h bullish divergence forming for Bitcoin, as it tests the support level again,” he told X followers on the day alongside a chart showing relative strength index (RSI) readings.
BTC/USDT 12-hour chart with RSI data. Source: Jelle/X
“Didn’t get that move up first unfortunately but we have now hit my downside target so hopefully this just means we are now ready for that relief rally sooner rather than later,” Credible Crypto added.
“Nice wipe on OI here but no immediate signs of buyers stepping in just yet.”
BTC/USD 4-hour chart. Source: Credible Crypto/X
Traders see Bitcoin volatility continuing
Data from monitoring resource CoinGlass meanwhile recorded total crypto long liquidations of $200 million for the 24 hours to the time of writing.
Related: A classic ‘Rektember?’ 5 Things to know in Bitcoin this week
Crypto liquidations (screenshot). Source: CoinGlass
In its latest bulletin to Telegram channel subscribers, trading firm QCP Capital implied that more could come thanks to increasing volatility.
“QCP’s Volatility Momentum Indicator (VMI) has been triggered this morning for both BTC and ETH, indicating that the market is entering a period of heightened volatility,” it confirmed, adding that the signal was nonetheless “directionally agnostic.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
