Crypto Price Prediction 8/5: New Correction Fears Mount as $BTC Reverts From $65,000

Crypto Price Prediction: For a majority of major cryptocurrencies, the second of May has witnessed a slight slowdown in recovery as BTC price struggles to sustain above the $65000 psychological level. With renewed overhead supply, Bitcoin (BTC) and Ethereum (ETH) showed a 2% decline in the last 24 hours. Other top assets like Solana (SOL) and Dogecoin (DOGE) showcased a 6% fall, while Toncoin and XRP tumbled 3%.

On May 7, 2024, Bitcoin ETFs experienced a net outflow of $16 million, reversing a two-day trend of positive inflows, according to SpotOnChain. Grayscale’s Bitcoin ETF notably registered a small outflow of $28.6 million after recent inflows. Overall activity across all tracked Bitcoin ETFs has slowed, with half of the 10 ETFs showing no net flow, including major entities like BlackRock’s $IBIT.

$BTC #ETF Net Inflow May 7, 2024: -$16M!

• The net inflow turned negative after 2 days of being positive.

• #Grayscale ETF $GBTC re-experienced a small single-day outflow of $28.6M after 2 days with inflows.

• Overall, the single-day inflows and outflows of all 10… pic.twitter.com/PxlJJblB7F

— Spot On Chain (@spotonchain) May 8, 2024

However, as per a tweet from WuBlockchain, a Federal Reserve official has suggested that interest rates might remain unchanged for an extended period unless inflation eases or the labor market shows significant weakness. However, if inflation stabilizes at 3%, a rate hike is still possible.

This situation could stimulate economic growth by encouraging borrowing and spending, potentially increasing liquidity and valuing cryptocurrencies as investors seek alternatives to traditional assets.

Also Read: BTC/USD: Bitcoin Call Options Hit 172K As Bitcoin Bags $64,000, $100K Incoming?

1) Bitcoin (BTC)

Bitcoin (BTC) is the first and most well-known cryptocurrency that operates on a decentralized ledger called the blockchain, which records all transactions transparently and immutably.

On May 4th, the Bitcoin price gave a bullish breakout from the resistance trendline of the wedge pattern which carried a correction trend for the past five weeks. This breakout signals the resumption of the prevailing recovery trend offering buyers suitable support to hold higher ground.

However, the overhead supply at $65000 has tumbled the asset by 3.5% to trade at $62371 currently. As per the data from coinmarketcap, Bitcoin holds a market cap of  $1.227 Trillion, while the 24-hour trading volume is at $24.6 Billion.

If the pullback rekindles bullish momentum among market participants, the BTC price could pursue the potential target of $67,200, followed by $73,750.

2) Cardano (ADA)

Cardano (ADA) is a third-generation, decentralized blockchain platform that stands out for its rigorous scientific underpinning and peer-reviewed research approach.

Over the past three weeks, the ADA price traded sideways resonating between two horizontal levels of $0.523 and $0.4. The narrow range of Bollinger band indicators highlights the increasing uncertainty and lack of dominance from buyers or sellers toward this asset.

By the press time, the Cardano coin trades at $0.43, while the current market cap stands at $15.6. For buyers to regain the upper hand with this asset, they need to surpass the key resistance level of $0.523. 

A successful breakout above this level could unleash the pent-up bullish momentum, propelling the ADA price towards higher objectives at $0.56 and then $0.62.

Also Read: Cardano (ADA), Shiba Inu (SHIB), XRP Among Top Crypto Flashing Buy Signals

3) Pepe Coin (PEPE)

Pepe Coin (PEPE)| Tradingview

Pepe Coin (PEPE) is a cryptocurrency inspired by the widely recognized internet meme, Pepe the Frog. It distinguishes itself in the crowded meme coin market with a strong community following and strategic marketing efforts aimed at ensuring long-term growth and visibility.

Over the past four days, Pepe Coin price has experienced a notable decline in value, dropping 15.7% from $0.0000092 to $0.00000783. This downward trend has breached the previous support level of $0.000008, signaling a bearish phase that may extend further.

For buyers to regain momentum, it will be crucial to sustain the 20-and-50-day exponential moving averages (EMAs) at around $0.00007. Holding this level could foster a pattern of higher lows, suggesting ongoing accumulation by buyers at lower prices.

Currently, PEPE Coin boasts a market capitalization of $3.29 billion. However, its trading volume has decreased by 29% to $589.5 million since yesterday. On the daily chart, the resistance levels to watch are at $0.00000920 and $0.0000108, while the significant supports are found at $0.00000591 and $0.000004. 

Also Read: Pepe Coin Price Analysis As Trading Volume Plunges 20% To $742M, Is 2024 Bull Run Over?

Key Takeaway

Bitcoin’s three-day losing streak has dropped its value to $62,000, halting the broader market’s recovery. However, the decline accompanied by decreasing volume, suggests that sellers lack conviction, pointing to the possibility of a bullish reversal. Market participants should identify key support levels to optimize their pullback trading strategies.

The post Crypto Price Prediction 8/5: New Correction Fears Mount as $BTC Reverts From $65,000 appeared first on CoinGape.