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(Kitco News) – The cryptocurrency market saw a pullback in price during trading on Wednesday as several major announcements – including the possibility that Genesis Global Capital could be forced to file for Chapter 11 bankruptcy protection – put End to the multi-day streak of price gains as traders saved profits and are now waiting for a good opportunity to re-enter the market.

Traditional markets were also under pressure as the latest retail sales report showed a slowdown in consumer spending to accompany a colder-than-expected inflation reading. As markets closed in the US, the S&P, Dow and Nasdaq all ended in the red, down 1.56%, 1.81% and 1.24%, respectively.

Data from TradingView shows an early morning push higher by Bitcoin (BTC) bulls was firmly rejected at $21,646, leading to a rapid 5.72% decline to a daily low of 20,415. $ before being pushed back above the support at $20,800.

BTC/USD 4 hour chart. Source: Trading View

The price pullback was a “normal break from hitting a four-month high on Tuesday” according to Kitco senior technical analyst Jim Wyckoff, who noted that the bulls “still have the overall short-term technical advantage of the market.” ‘company in the midst of an upward price trend up the daily bar chart.

“That suggests even more near-term potential,” Wyckoff concluded.

Corrective pullback before a bull market

A recent market update report from Eight Global called the possibility of a corrective pullback a likely scenario based on where the price and RSI were trading. According to analysts at Eight Global, $20,000 and $19,500 are the levels to watch now as good places to look for long opportunities.

“In particular, the $19,500 area is interesting, both from a horizontal S/R level perspective and the 200-day simple moving average also starts to curl from there,” the update reads. .

“If a decline occurs, the price may reach $18,800, so initial stop loss (SL) orders could be placed below. When the price reaches the $20,800 area again, SL can be moved towards breakeven or profit to secure the position,” the analysts noted.

Full-time crypto trader Daan Crypto Trades noticed that the current price action for Bitcoin is similar to what was seen in April 2019 and warned that those expecting a quick follow-up rally might be disappointed as price “may crash here for much longer than you think.”

BTC/USDT 1-day chart. Source: Trading View

“In 2019, we worked in a small range for a month before seeing a breakout. Many positions, on both sides, were rektted during this chop,” Daan warned.

Market analyst Rekt Capital made a similar observation about the move in April 2019 and posted a tweet hinting at the possibility of a pullback to $17,000.

Altcoin market takes a hit

The broader altcoin market also returned some of the gains it recently captured, as only a handful of tokens were in the green while the vast majority posted losses on the day.

Daily performance of the cryptocurrency market. Source: Coin360

Projects that managed to post gains amid the general market pullback include Kava (KAVA), which rose 9.82% to $1.03, an 8.88% gain for Galxe (GAL) and a 6.98% increase for Shiba Inu (SHIB).

The overall cryptocurrency market capitalization now stands at $975 billion and Bitcoin’s dominance rate is 41.3%.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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