Author: Mary Liu from BitpushNews
On Tuesday, the entire cryptocurrency market experienced a downturn, with Bitcoin falling below the $65,000 support level in the short term and several mainstream altcoins seeing double-digit declines.
According to data from Bitpush, Bitcoin opened the day at $66,665 and then began a downward trend, dropping to as low as $64,300 at one point. After rebounding from the $64,000 support level in the afternoon, the trading price at the time of writing was $65,056, with a 2.36% decline in the past 24 hours.
Altcoins faced heavy selling pressure, with only six out of the top 200 altcoins by market cap recording gains in the past 24 hours. Convex Finance (CVX) and aelf (ELF) saw increases of 14.6% and 14.1% respectively, while FTX Token rose by 7%. Among the top 200 tokens, 80 tokens experienced double-digit declines, with Conflux (CFX), Core (CORE), and cat in a dog’s world (MEW) being the biggest losers, falling by 19.7%, 19.4%, and 19.2% respectively.
Coinglass data revealed that approximately $372 million worth of long leveraged positions were liquidated in the past 24 hours, while short positions liquidated amounted to $61.8 million.
The total market capitalization of cryptocurrencies currently stands at $2.32 trillion, with Bitcoin’s dominance at 54.5%.
In the US stock market, NVIDIA surpassed Microsoft to become the world’s most valuable publicly traded company. At the close, the S&P 500 and Dow Jones indices rose by 0.25% and 0.15% respectively, while the Nasdaq index remained relatively stable. Analysts noted that despite the absence of interest rate cuts, stock prices continued to rise due to sustained growth in profits of high-tech companies and economic expansion.
In the cryptocurrency market, there were signs of optimism as the funding rate turned negative for the first time in months, indicating a return of strong spot premiums.
Analysts from Secure Digital Markets noted the decline in speculative activity among market participants, with Bitcoin trading below the 50-day moving average, posing pressure on the medium-term trend.
For users experiencing losses due to selling, market analyst CrediBULL Crypto advised patience, highlighting the return of strong spot premiums and the negative funding rate as positive indicators for Bitcoin’s bottom formation above $60,000.
Investors can gauge market sentiment by measuring the long/short ratios of top traders. Coinglass data showed an increase in the long/short ratio for major traders on Binance and OKX, suggesting a strong demand for leveraged long positions despite Bitcoin’s failure to hold the $68,000 support level.
CryptoQuant analysts reported a lack of bullish momentum in the market, attributing it to stagnant demand from whales and a slowdown in stablecoin liquidity growth. Founder and CEO of Bitcoin, Max, pointed out the recurring patterns in the market, comparing Bitcoin and altcoin performance in previous cycles.
Market analyst Rekt Capital noted similarities in the current price trend with the 60-day post-halving trend, emphasizing the need to break the downward trend line for a price reversal.
Experienced trader Peter Brandt drew parallels between the current Bitcoin chart and the daily chart fractals of gold in 2008-2009 and 2020-2024, suggesting a potential bullish trend with the appearance of an Inverted Head and Shoulders pattern.