On Tuesday, the entire cryptocurrency market retreated, with Bitcoin breaking through the $65,000 support level in the short term, and multiple mainstream altcoins experiencing double-digit declines.
According to Bitpush data, Bitcoin opened the day at $66,665 and then started a downward trend, dropping to as low as $64,300 at one point. After bouncing back from the $64,000 support level post-midday, the trading price was $65,056 at the time of writing, with a 24-hour drop of 2.36%.
The altcoin market suffered heavy selling pressure, with only six of the top 200 altcoins seeing gains in the past 24 hours. Convex Finance (CVX) and aelf (ELF) rose by 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 dogs world (MEW) seeing the largest drops, falling by 19.7%, 19.4%, and 19.2% respectively.
According to Coinglass data, approximately $372 million worth of long positions in cryptocurrency leveraged trading were liquidated in the past 24 hours, with short positions being liquidated for $61.8 million. The total cryptocurrency market capitalization is currently $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 listed company. At closing, the S&P 500 and Dow Jones rose by 0.25% and 0.15% respectively, while the Nasdaq remained relatively stable. Analysts stated, “Tech companies continue to see profit growth and economic expansion driving stock prices higher, even without rate cuts.”
In terms of the spot premium, the funding rate turned negative for the first time in months. Secure Digital Markets analysts noted a significant spot premium in the market, indicating a reduction in speculative activity among market participants. Bitcoin is still below the 50-day moving average, creating pressure on the mid-term trend.
For users who sold at a loss, market analyst CrediBULL Crypto urged patience, stating that the strong return of the spot premium and the first negative funding rate in months indicate that Bitcoin is forming a bottom above $60,000, but it requires patience.
On the other hand, investors can gauge market sentiment by measuring the long/short ratio of top traders. Coinglass data showed that the long/short ratio of Binance whale traders increased from 1.32 on June 13 to 1.52, indicating strong demand for leveraged long positions despite Bitcoin’s failure to sustain the $68,000 support level. At OKX, this ratio increased from 1.65 on June 13 to 1.78, indicating that whales and market makers increased net long positions when Bitcoin fell below $67,000.
CryptoQuant analysts reported that traders have not increased their Bitcoin holdings, signaling weak demand growth from whales and a continued slowdown in stablecoin liquidity growth. The lack of bullish momentum in the market was highlighted.
Max, the founder and CEO of Bitcoin, pointed out that the current market situation has occurred in previous cycles. He explained on Twitter that Bitcoin and altcoins continue to repeat patterns seen in previous cycles, with altcoins underperforming when Bitcoin reaches its previous all-time high.
Market analyst Rekt Capital stated that the current price action mirrors the 60-day trend after previous halvings, emphasizing Bitcoin’s downward trend throughout June and suggesting that a breakout of this trendline could trigger a price reversal.
Experienced trader Peter Brandt pointed out that the current Bitcoin chart resembles the daily chart fractal of gold performance in 2008-2009 and 2020-2024, with the appearance of an Inverted Head and Shoulders pattern signaling a positive future trend.