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

Crypto Price Prediction

On May 2nd, most major cryptocurrencies experienced a slight slowdown in recovery as BTC struggled to maintain above the $65,000 psychological level. Amidst renewed overhead supply, Bitcoin (BTC) and Ethereum (ETH) saw a 2% decline in the past 24 hours. Other top assets like Solana (SOL) and Dogecoin (DOGE) exhibited a 6% fall, while Toncoin and XRP dropped 3%.

On May 7, 2024, Bitcoin ETFs faced 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.

However, a Federal Reserve official suggested that interest rates might remain unchanged for an extended period unless inflation eases or the labor market shows significant weakness. Nevertheless, if inflation stabilizes at 3%, a rate hike remains possible. This scenario could boost economic growth by encouraging borrowing and spending, potentially increasing liquidity and driving up cryptocurrency valuations as investors seek alternatives to traditional assets.

1) Bitcoin (BTC)

Bitcoin (BTC) is the pioneering and most renowned cryptocurrency that operates on a decentralized ledger known as the blockchain, which transparently and immutably records all transactions. On May 4th, the Bitcoin price broke bullishly from the resistance trendline of a wedge pattern that had guided a corrective trend for the past five weeks. This breakout signals the resumption of the prevailing recovery trend, offering buyers support to hold higher ground. However, overhead supply at $65,000 has pushed the asset down by 3.5% to trade at $62,371. According to coinmarketcap, Bitcoin holds a market cap of $1.227 trillion, while the 24-hour trading volume is $24.6 billion. Should the pullback reignite bullish momentum, the BTC price could target $67,200, followed by $73,750.

2) Cardano (ADA)

Cardano (ADA) is a third-generation, decentralized blockchain platform that is distinguished by its rigorous scientific underpinning and peer-reviewed research approach. Over the past three weeks, the ADA price has traded sideways between $0.523 and $0.4. The narrow range of Bollinger band indicators reflects increasing uncertainty and a lack of dominance from either buyers or sellers. At press time, the Cardano coin trades at $0.43, while its market cap stands at $15.6 billion. For buyers to regain control, they must surpass the key resistance level of $0.523. A successful breakout above this level could unleash pent-up bullish momentum, driving the ADA price towards targets of $0.56 and $0.62.

3) Pepe Coin (PEPE)

Pepe Coin (PEPE) is a cryptocurrency inspired by the popular internet meme, Pepe the Frog. It sets itself apart 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, the Pepe Coin price has experienced a significant decline in value, dropping 15.7% from $0.0000092 to $0.00000783. This downward trend has breached the previous support level of $0.000008, indicating a bearish phase that may continue.