Leading cryptocurrencies retreated alongside stocks on Tuesday as investors cashed in on recent gains.
Crypto Market Takes A Breather
Bitcoin gave back some of its recent gains, falling back into the $65,000 zone after coming close to breaking $67,000. Ethereum followed suit, reversing from the intraday high of $1,837 to the high $1,700s. XRP and Dogecoin also pulled back.
Over $340 million was liquidated from the market in the last 24 hours, with long position traders bearing the brunt of the losses, according to Coinglass data.
Alongside the spot price dip, Bitcoin’s open interest contracted by 1.59% over the last 24 hours. Retail and whale derivatives traders on Binance, meanwhile, remained long on the apex cryptocurrency.
“Extreme Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.25 trillion, following a modest dip of 0.85% over the last 24 hours.
Stocks Trade Mixed
Stocks were a mixed bag on Tuesday. The Dow Jones Industrial Average jumped 328.64 points, or 0.64%, to close at a record high of 51,999.67.
The S&P 500, on the other hand, slid 0.57% to end at 7,511.35, while the tech-heavy Nasdaq Composite retreated 1.15% to close at 26,376.34.
Why This BTC Level Is Key
Widely followed cryptocurrency analyst and trader Michaël van de Poppe identified $64,000 as the key support level for Bitcoin that could “decide everything in terms of direction.”
“If Bitcoin fails to hold above $64,000, we’ll be testing new lows,” Van De Poppe said. “If it does hold above $64,000, I assume we’ll be seeing $74-79,000 as the next target zone.”
On-chain analytics firm Santiment highlighted an increase in bullish commentary for top cryptocurrencies after the U.S.-Iran agreement, without any signs of “excessive greed” yet.
“The crowd is becoming more optimistic, but not enough to suggest widespread FOMO, leaving room for bullish momentum to continue,” the firm added.
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