Leading cryptocurrencies diverged from the stock market on Thursday, even as investors dissected reports of a ceasefire between the U.S. and Iran.
Crypto Market Stagnates
Bitcoin hit a six-week low, sliding to $72,500 before bouncing back above $73,000 by evening. Trading volume jumped 17% in the last 24 hours. Ethereum dived below $2,000 in the early trading hours before rebounding later in the day as selling pressure remained high.
Over $600 million in bullish long positions was wiped out from the cryptocurrency market in the past 24 hours, according to Coinglass data.
Bitcoin’s open interest rose 0.87% over the last 24 hours. An increase in open interest alongside a drop in spot price typically signals a short build-up, meaning traders are actively entering new short positions.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.47 trillion, following a dip of 0.80% over the last 24 hours.
Stocks Extend Rally
Stocks notched new records on Thursday. The Dow Jones Industrial Average gained 24.69 points, or 0.05%, to end at 50,668.97. The S&P 500 rose 0.58% to close at 7,563.63 , while the tech-focused Nasdaq Composite lifted 0.91% to end at 26,917.47.
Why This BTC Level Is ‘Pivotal’
Popular cryptocurrency analyst Rekt Capital noted Bitcoin’s correction to retest the top of the double bottom formation near $73,000 that fueled the prior rally.
A double bottom pattern signals that a downtrend is likely ending and an uptrend is beginning. It resembles the letter “W” and shows buyers taking control.
The analyst added that retest must hold successfully, with the weekly close relative to $73,000 serving as a “pivotal” level.
Widely followed cryptocurrency analyst and trader Ali Martinez warned that shorting Ethereum at the current levels is a “trap” and that instead of chasing downside volatility, they are using any “weakness” to hoard more ETH.
“Rather than risking capital trying to perfectly time a short into a historic value zone, my approach is to remain patient with the long term thesis and gradually accumulate through,” Martinez added.
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