Leading cryptocurrencies rallied sharply Wednesday, diverging from the stock market's negative action.

Cryptocurrency Gains +/- Price (Recorded at 8:45 p.m. EDT) Bitcoin BTC/USD +3.23% $58,011.02 Ethereum ETH/USD

+4.77% $2,454.72 Dogecoin DOGE/USD +5.20% $0.09804

What Happened: World's largest cryptocurrency, Bitcoin recovered to $58,000 after dramatically plunging over 3% in 15 minutes overnight on Tuesday.

However, the rise could not be sustained, as King Crypto quickly reversed and became rangebound.

Ethereum also made a U-turn, breaching past $2,400 following a decline to $2,300 the previous day.

The total cryptocurrency liquidations reached $86.13 million in the last 24 hours, with short liquidations accounting for 66%.

Bitcoin's Open Interest rose 2.85% to $29.95 billion in the past 24 hours, indicating a surge in bullish bets. This was further exemplified by the sharp increase in the Long/Shorts ratio.

The market mood remained in "Fear" as of this writing, according to the popular Cryptocurrency Fear & Greed Index, showing a reading of 29 out of 100.

Top Gainers (24-Hours)

Cryptocurrency Gains +/- Price (Recorded at 8:45 p.m. EDT) Aave (AAVE) +12.77% $135.68 Starknet (STRK) +11.49% $0.4041 Helium (HNT) +10.63% $7.88

The global cryptocurrency market stood at $2.03 trillion, following a marginal increase of 0.70% in the last 24 hours.

Major stock indices fell for the second consecutive day. The S&P 500 slipped 8.86 points, or 0.16%, to end at 5,520.07. The tech-focused Nasdaq Composite closed 0.30% lower at 17,084.30. The Dow Jones Industrial Average Futures defied the downtrend, ticking 0.09% higher to close at 40,974.97 points.

The slide coincided with Nvidia Corp.’s NVDA 1.66% decline during Wednesday's session, after a sharp 9% plunge Tuesday.

A bit of drama prevailed when the AI behemoth denied receiving a subpoena from the U.S. Department of Justice (DOJ), a day after reports surfaced suggesting the same.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular cryptocurrency analyst and trader Ali Martinez suggested Bitcoin breakout traders be mindful of the trendline at $68,000.

"Until this breaks, the BTC dip may keep dipping," the analyst emphasized.

"Markets love symmetry, and fakeouts to one side of a pattern usually trigger extended moves in the opposite direction," Bennett remarked.

If you're a #Bitcoin breakout trader, this is the main trendline you should be worried about, currently at $68,000! Until this breaks, the $BTC dip may keep dipping. pic.twitter.com/80qtEocnvS — Ali (@ali_charts) September 4, 2024

Widely followed analyst Michaël van de Poppe noted that things weren't "too bad" for Ethereum.

"Reclaiming $2,400-$2,410 should signal positivity to $2,600-$2,700 and likely higher," he predicted.

Picturing everything for $ETH, it shows that liquidity has been taken on multiple levels.

If the next level of support needs to be taken –> <$2,100 is next.

Reclaiming $2,400-2,410 should signal positivity to $2,600-2,700 and likely higher.

Things aren't too bad. pic.twitter.com/FdXptisA81 — Michaël van de Poppe (@CryptoMichNL) September 4, 2024

• Read More