Major cryptocurrencies are trading in the red on Wednesday, continuing the recent downturn that has been attributed to macro uncertainty and trade war tensions.

Notable Statistics:

In the 24 hours leading up to 8:38 ET (12:38 UTC), Bitcoin (BTC) fell by 1.08% to $83,631. Meanwhile, Ethereum (ETH) experienced a decline of 0.67%, reaching $1,639.

Among the top ten cryptocurrencies, Monero (XMR) displayed the largest gain over 24 hours, advancing by 9.48%.

Notable Developments:

Crypto trader Blockchainedbb highlighted that Bitcoin has cleanly navigated through key price ranges, first from $76,000–$84,300 and now pushing through the $84,300–$86,000 zone. He sees the next short setup between $86,000 and $83,000, anticipating a possible bounce near $82,000–$83,000 before any deeper correction.

Given the strong performance of his current short positions, Blockchainedbb plans to exit around $83,000–$84,000, noting that Wednesdays often bring bullish momentum, making it risky to hold shorts mid-week.

Wednesday morning brings some interesting price action on BTC. We're currently in the midst of a short setup between 86k and 83k.

We'll likely see a bounce around 82/83k before any deeper correction.

With the shorts performing so well, I'll likely be exiting around 83/84k. It seems risky to hold shorts on Wednesday with the potential for a mid-week rally.

— Blockchainedbb (@blockchainbb) August 9, 2023Trader Roman pointed to bearish divergences on both the RSI and Stoch RSI on Bitcoin's 1-day chart, with both indicators in overbought territory.

He warned that the recent price rally lacked momentum, suggesting that Bitcoin could retrace toward local lows.

$BTC 1DI see a run back to local lows as we have: – bearish price action– bear divs on RSI– overbought stoch RSIThis run up didn't seem strong as well.pic.twitter.com/oi8sS50HOl

— Roman (@Roman_BTC_) August 9, 2023Benjamin Cowen drew attention to Bitcoin dominance, highlighting it as a key driver of the next crypto cycle. In a conversation with Anthony Pompliano, Cowen stated that "no one is talking about" Bitcoin dominance, despite its crucial role.

"It feels like the key to unlocking the cryptoverse is going to be related to Bitcoin's dominance," said Cowen, adding that it could either "break out in a big way" or continue to flounder.

Don't be surprised if major macroeconomic events, such as the U.S. reporting a 0.1% increase in the consumer price index, or the Chinese M2 money supply hitting a record ¥326 trillion (about $44 trillion), nearly double the U.S. supply, ultimately serve as the catalyst for a massive move in crypto.

As Ted Pillows pointed out, even a small fraction of this liquidity flowing into crypto could trigger a parabolic move.

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