Bitcoin bounced off the $27,500 area, ending the previous streak of 2 consecutive days of price decline.
Dow Jones ended a three-session losing streak on Wednesday as Treasury yields retreated from multi-year highs on weaker-than-expected jobs data.
At the end of the trading session, Dow Jones increased 127.17 points (equivalent to 0.39%) to 33,129.55 points. S&P 500 added 0.81% and closed at 4,263.75 points. Meanwhile, Nasdaq Composite increased 1.35% to 13,236.01 points.
Among S&P 500 industry groups, consumer discretionary stocks rose the most at about 2%. Tesla and Norwegian Cruise Line led the sector’s gains with jumps of 5.9% and 3.8%, respectively.
Energy was the S&P 500’s worst-performing sector on Wednesday as crude oil prices saw their sharpest drop since September 2022. Devon Energy and Marathon Oil both fell approximately 5%, while SLB and Halliburton both fell more than 4%.
The factor influencing the market on Wednesday is new employment data. Accordingly, ADP said the private sector added 89,000 jobs in September, much lower than the forecast of 160,000 from Dow Jones and the adjusted level of 180,000 in August.
Bond yields retreated slightly from their highest levels since 2007 after receiving the above data. Specifically, the 10-year US Treasury bond yield is trading at 4.735%.
Investors are still cautious and are waiting for the September non-farm payrolls to get more clues about the labor market situation.
Contrary to stocks, gold prices fell for the 8th consecutive session on Wednesday as US Treasury yields rose as expectations that the Fed would maintain interest rates at higher levels for longer continued to weigh on them. investor psychology.
Spot gold contracts decreased 0.1% to 1,821.69 USD/oz while gold futures contracts in the US lost 0.4% to 1,834.8 USD/oz.
Oil plunged more than 5 USD/barrel on Wednesday as falling fuel demand as well as the gloomy macroeconomic picture became the focus of investors during the session.
Brent crude oil futures contract plunged 5.11 USD/barrel, equivalent to 5.6%, to 85.81 USD/barrel, while WTI crude oil futures contract in the US dropped 5.01 USD/barrel, respectively. corresponding 5.6% to 84.22 USD/barrel.
Bitcoin and Altcoins
Bitcoin recently broke above the $27,500 resistance level on the daily timeframe after surpassing the 50-day moving average around the $26,000 mark. However, the price was rejected by the 200-day moving average near $28,000, leading to a retracement.
If this level holds and the market jumps above the 200-day moving average, a BTC rally towards $30,000 and beyond is likely. However, in the opposite case, the market could potentially drop to the $20,000 support area.
A look at the 4-hour chart will provide additional clarity on recent price action. Since breaking out of the falling wedge pattern, the price has moved higher, surpassing the $27,500 resistance.
However, it is now retesting this level and if the pullback is valid, the market could be preparing to target $30,000. Conversely, if the pullback fails, the recent move will be considered a false breakout and could lead to a rapid decline below $25,000.
Futures markets have played a key role in determining Bitcoin’s price action in recent years. Therefore, for a sustainable uptrend to occur, the futures market needs to be prepared.
The chart below shows the 100-day moving average of the Bitcoin Taker Buy Sell ratio, a valuable measure in gauging sentiment in the futures market. This metric indicates whether buyers or sellers are executing orders more aggressively. Values above 1 are considered bullish, while values below 1 are considered bearish.
As shown in the chart, the ratio has been below 1 for some time now, coinciding with the recent consolidation and the price is unable to move higher. If this metric begins to increase and surpass 1, a further uptrend will occur in the short term. Otherwise, any upward price movement could be a signal of unsustainability.
On the Altcoin side, the market prospered as Bitcoin recovered to above $27,500.
Trust Wallet Token (TWT) is the best performing project in the short term, bouncing more than 12% in just the past 24 hours. Looking at the 7-day time frame, TWT has recorded a recovery of more than 16%.
Other projects in the top 100 include Avalanche (AVAX), Mina (MINA), Render (RNDR), Aave (AAVE), THORChain (RUNE), Injective (INJ), Chanlink (LINK), Chiliz (CHZ), Maker ( MKR), Klaytn (KLAY), MultiversX (EGLD), IOTA (MIOTA), Gala (GALA), Optimism (OP) rebounded from 3-9%.