In a continuation of the price volatility seen in recent days, Bitcoin (BTC) failed to sustain its bounce above $61,000 on Thursday’s U.S. trading session, with the price dropping back below $59,000.

Price Action and Market Trends

Despite the setback, BTC still managed to hold onto some of its gains from the past 24 hours, up 0.6% in line with the broader market as measured by the CoinDesk 20 Index. However, this uptick was not enough to propel the price above key short-term moving averages on the 4-hour timeframe.

Ether and Other Altcoins

In contrast, Ether (ETH) struggled to maintain its momentum, down 0.5% and barely holding above the $2,500 price level. This trend was reflected in other altcoins as well, with artificial intelligence-focused cryptocurrencies like Render (RNDR), Artificial Superintelligence Alliance (FET), and Bittensor (TAO) all lower by 7-10% for the day.

Nvidia’s Quarterly Results Drag Down Tech Stocks

The losses across these tech-heavy stocks can be attributed to the decline of chip-making giant Nvidia (NVDA) after reporting quarterly results on Wednesday evening, which sent its shares plummeting by 6.4%. This move weighed heavily on the Nasdaq, with U.S. stocks ultimately giving up early-day gains and falling by 0.3% just before the closing bell.

Skew’s Analysis: Key Levels to Watch

According to pseudonymous crypto analyst Skew, the price action suggests that buyers would need to push prices past $61,000, above key short-term moving averages on the 4-hour timeframe, to have a meaningful chance of rallying to the upper side of the range. This view is supported by the chart below, which highlights the importance of breaking through these key levels.

In his analysis, Skew pointed out that:

• "Crucial hours ahead for systematic confirmations on trend so far there’s a backtest of 4H EMAs here & RS
• 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-…"

Consolidation Ahead?

The failure of Bitcoin to sustain its bounce above $61,000 for the second time this week suggests that crypto markets may be in for more consolidation. This trend is consistent with the quick recovery from the early August plunge below $50,000 continuing to fizzle out.

Bitcoin’s Downtrend Continues

The largest cryptocurrency has been stuck in a downtrend since its all-time record of $73,000 in March, making lower highs and lower lows ever since. This trend is a clear indication that the market needs more time to consolidate before any significant price movements can occur.

Conclusion

In conclusion, while Bitcoin’s attempt at a bounce above $61,000 was unsuccessful for the second time this week, it still managed to hold onto some of its gains from the past 24 hours. However, the broader market trend suggests that consolidation is ahead, and the largest cryptocurrency needs more time to establish a clear direction before any significant price movements can occur.

References

• Skew (@52kskew) on Twitter
• CoinDesk 20 Index