Leading cryptocurrencies rallied alongside stocks on Wednesday as President Donald Trump’s latest remarks on Iran helped ease geopolitical tensions.
Crypto Market Rallies
Bitcoin broke through the resistance at $78,000, with trading volume rising nearly 6% over the last 24 hours.
Ethereum also rallied overnight, jumping to a high of $2,150, while XRP and Dogecoin recorded noticeable gains.
Over $260 million was liquidated in the past 24 hours, predominantly in short positions, according to Coinglass data.
Bitcoin’s open interest rose by a modest 0.75%, while retail and whale derivatives traders on Binance remained bullish on the leading cryptocurrency.
The market sentiment improved from “Extreme Fear” to “Fear,” according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.55 trillion, following a contraction of 0.30% over the last 24 hours.
Stocks Bounce Back On Ceasefire Hopes
Stocks recovered sharply on Wednesday. The Dow Jones Industrial Average rallied 645.47 points, or 1.31%, closing at 50,009.35. The S&P 500 lifted 1.08% to end at 7,432.97, while the tech-focused Nasdaq Composite gained 1.54% to end at 26,270.36.
Trump, softening his recent war rhetoric, said the U.S. is in the “final stages” of talks with Iran and will give diplomacy “one shot.”
Meanwhile, minutes from the April Federal Reserve meeting showed that a majority of officials expected interest rate hikes if inflation, exacerbated by the Middle East conflict, were to continue running persistently above 2%.
Why This BTC Ceiling Is ‘Significant’
Widely followed cryptocurrency analyst Ali Martinez identified $77,800 as a level of interest for Bitcoin.
“A clean breakout above the $77,800 ceiling is significant. If we flip this level into support, it clears the path for BTC to accelerate toward $79,000,” the analyst projected.
If the resistance holds, Martinez expects a healthy retracement, with $76,900 and $76,000 identified as key support levels.
Are ETH Bears Back In Control?
Blockchain analytics firm CryptoQuant noted that Ethereum’s downside breakout from the triangle formation indicated that the “consolidation phase has shifted in favor of sellers.”
“If Ethereum fails to reclaim the broken triangle structure, selling pressure could accelerate further and price may target the $1,350 support level,” CryptoQuant predicted.
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Image via Shutterstock/ Joshua Sukoff
