Leading cryptocurrencies struggled alongside major stock indexes on Tuesday after consumer inflation rose more than expected in April.
Crypto Market Stagnates
Bitcoin dived below $80,000 during the afternoon, but recouped gains late in the evening. $82,000. Ethereum struggled to break beyond the $2.300 resistance, while XRP traded in the red.
Over $275 million was liquidated in the past 24 hours, with $225 million in long positions alone wiped out, according to Coinglass data.
Bitcoin’s open interest rose nearly 1% over the last 24 hours. A rise in open interest while the price moves sideways typically indicates that new positions are being established, paving the way for a breakout.
“Fear” sentiment, meanwhile, returned, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.69 trillion, following a dip of 1.04% over the last 24 hours.
Stocks Dive After Hotter Inflation Print
Major stock indexes descended from record highs. The S&P 500 fell 0.16% to close at 7,400.96 , while the tech-focused Nasdaq Composite retreated 0.71% to end at 26,088.20. The Dow Jones Industrial Average was the outlier, edging up 56.09 points, or 0.11%, to end at 49,760.56.
Consumer inflation rose more than expected in April, marking the hottest reading in three years, and dampening rate cut expectations for the year, according to the CME FedWatch tool.
Why Bitcoin Needs To Flip This Level Into Support
Widely followed cryptocurrency analyst Ali Martinez said aggressive long positioning on futures exchanges has built liquidation walls for Bitcoin at $75,000, $73,000 and $70,000.
“If BTC can’t flip $82,500 into support soon, the market may look to flush this leverage by testing those lower levels,” the analyst stated.
Michaël van de Poppe, another prominent cryptocurrency commentator on X, saw no “exhaustion” signals in Bitcoin.
“Every dip is constantly being bought up, which means that we need to see first whether resistance breaks to show whether the markets are actually done here,” Van De Poppe said.
The analyst targeted $86,000-$90,000 for BTC within 2-3 weeks if resistance breaks, stressing that the “buy the dip” sentiment persists.
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