On Wednesday, the cryptocurrency market experienced a day of volatile consolidation. Bitcoin was under pressure and fell earlier in the trading session, but in the afternoon, there was intense competition between bulls and bears near the support level of $62,000. According to Bitpush data, Bitcoin fluctuated between $61,430 and $63,020 throughout the day, struggling around $62,000 for most of the time. At the time of writing, the trading price of Bitcoin was $61,512, with a 24-hour decrease of 2.36%.
The U.S. stock market also opened lower and rebounded during the trading session, with major stock indexes closing mixed. At the close, the Dow Jones Industrial Average rose 0.44%, the S&P 500 remained unchanged, and the Nasdaq Composite fell 0.18%. The U.S. dollar index remained flat, while the yield on the 10-year U.S. Treasury bond rose 81 basis points to 4.494%.
In terms of altcoin trading, most of them experienced losses. Among the top 200 tokens, only 20 saw gains on Wednesday. UMA (UMA) surged 50.9% to $4.03, FTX Token (FTT) rose 18.3%, and Tellor (TRB) rose 17.6%. The meme token Dogwifhat (WIF) had the largest decrease, falling 13.8%, followed by Worldcoin (WLD) with a 13% decrease, and Livepeer (LPT) with a 12% decrease.
Currently, the total market capitalization of cryptocurrencies is $2.28 trillion, with Bitcoin’s dominance rate at 53.5%.
CryptoQuant analyst JA Maartunn warned in the daily market report that “any daily closing price below $62,100 or long-term inactivity is considered a stop-loss.”
Secure Digital Markets analysts stated that “Bitcoin has been falling from its 50-day moving average since the beginning of this week. The price may drop to the level of $60,000, especially if there continues to be a significant outflow of funds from Bitcoin ETFs. If this outflow continues, it could cause BTC to fall below $60,000 and potentially retest the recent low of $56,500.” According to data provided by Farside, spot Bitcoin ETFs saw a net outflow of $15.7 million on Tuesday, mainly attributed to Grayscale’s GBTC, which recorded a net outflow of $28.6 million after two consecutive inflows, and BlackRock recorded zero inflows.
Analysts pointed out that the current market sentiment is cautiously optimistic about maintaining above the $60,000 mark and working towards recovery. Observers are closely watching the performance of the broader stock market during this earnings season, which can provide insights into liquidity conditions.
Aaron Evans, the Chief Operating Officer of the Moonbeam Foundation, also believes that with more institutions adopting Bitcoin and Fidelity reporting that pension funds are exploring the allocation of Bitcoin ETFs, market optimism is on the rise.
Evans stated in a report, “Although Bitcoin has not reached the expected new high after the halving, there is still some bullish sentiment in the cryptocurrency market. AI tokens continue to perform well, especially in the exciting situation of NVIDIA’s earnings report. This indicates that investors are once again trusting cryptocurrencies when looking for other tokens to invest in. Traders are always looking for new ways to make money, and when they see increased institutional interest and good performance in other assets, they may diversify their portfolios. This operates similarly to meme coins in the market.”
He concluded, “As Bitcoin continues to perform well or recover, traders will focus on similar assets that can bring them more profits. As investors rebuild trust in the industry, we should expect more diversification of digital assets.”
However, market analyst Orson Fawley stated that Bitcoin “continues to fluctuate within a long-term declining price channel” and that “if the bulls fail to break through the price channel, further declines and adjustments are expected.”
He pointed out, “BTCUSD recently broke through the strong support area of $63,000. In the short term, this continues to favor the sellers, as signals from the EMA and resistance levels support new selling waves. As the bears begin to control the trend, profit-taking is occurring near the $61,000 region.”
Market analyst Maximillian FX stated on the X platform that the formation of a triple top pattern indicates further downside is coming, signaling a good opportunity for short positions.
Maximillian explained that BTCUSD is currently undergoing corrective recovery and has found support at $62,180. However, overcoming the resistance level of $63,000 remains a challenge and target. Statistics show that the strongest volatility occurs after a breakthrough. A breakthrough and consolidation below $63,000 could trigger a significant decline in the strong liquidity area on the chart. There is further evidence that once the resistance level is reached, BTCUSD will reverse, as shown by the 34.89 EMA, which indicates a favorable position for the bears.
Maximillian warned that technically, a correction could occur starting from the Fibonacci 0.618 level, and breaking below $62,180 would lead to further bearish selling targets, possibly reaching the key level of $60,856 (consistent with the test of the Fibonacci 1.618 number).
Author: Mary Liu, BitpushNews
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Tags:
2023 Market
FTT
Tellor
Bulls
Altcoins
Bears
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Note: All Bitpush articles represent the author’s views and do not constitute investment advice.
Original article link:
https://www.bitpush.news/articles/6688528
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