Cryptocurrency markets are down on Wednesday, mirroring broader economic concerns amid geopolitical tensions.

Notable Developments:

• Bitcoin Could Dip to $40,000 Amid Market Turbulence: 10x Research

• Trump's Son Eric Posts Crypto Cliffhanger, Says 'Big Announcement' Incoming — Are We Getting A Memecoin For 'Real' This Time?

• Bitcoin Defies Bearish Signals As Bank Of Japan's Stance Reshapes Market Dynamics

• Bitcoin Whales Reportedly Accumulate Nearly $23B Worth Of BTC In A Month: 'Something Is Happening Behind The Scenes'

Notable Statistics:

• IntoTheBlock data shows a 26.3% decrease in large transaction volume and a 9.5% drop in daily active addresses. Despite price fluctuations, 79% of Bitcoin holders are currently making a profit.

• Coinglass data shows open interest dropped to its lowest level, $26.7 billion, since February 2024.

• Watcher Guru reported that asset manager Morgan Stanley advisors will offer Spot Bitcoin ETFs to clients starting today.

• Santiment data noted that between Aug. 5 and Aug. 6, the highest level of Bitcoin whale transactions was recorded since the first week of April.

Top Gainers:

Trader Notes: Crypto chart analyst Ali Martinez highlighted a classic rising wedge for Bitcoin. He predicted a correction to $54,500 if the crypto king breaks the $56,800 support. However, if there is a close above $58,000 this pattern and prediction will be invalidated.

This chart shows a classic rising wedge for #Bitcoin. A correction to $54,500 is likely if #BTC breaks the $56,800 support. However, if $BTC closes above $58,000, this pattern is invalidated! pic.twitter.com/p0Dd1fgoHk

— Ali (@ali_charts) August 7, 2024

Glassnode data points out that August is an "exceptional eventful month" for equity and digital asset markets. A "correlation-1" event sparked a major market sell-off and BTC was no exception. This led to a capitulation amongst short-term holders.

Rekt Capital predicts that BTC will need to fall 3.5% from current prices to fill the most recent but much smaller CME Gap ($53,700-$54,600). The trader added that if the CME gap needs to be filled it should be now.

#BTC
Bitcoin would only need to drop -3.5% from current prices to fill the most recent but much smaller CME Gap ($53700-$54600)
It's unclear if this CME Gap needs to get filled given how relatively insignificant it is
Technically, this could still just be a volatile Daily...  pic.twitter.com/dlOLaIdqlY

— Rekt Capital (@rektcapital) August 7, 2024

Crypto trader Kevin sees Bitcoin in a bullish pattern. He added that there are four touches on each end of the falling broadening wedge, which makes this look more defined.