Leading cryptocurrencies rallied Sunday evening, even as rising tensions in the Middle East fueled doubts about sustained market momentum.
Crypto Market Rebounds
Bitcoin exceeded $64,000 late evening, fueled by a 15% jump in trading volume, as the apex cryptocurrency recovered part of its losses from a tough week. Ethereum also topped $1,700, while XRP and Dogecoin recorded sharp recoveries.
Over $660 million was erased from the market in the last 24 hours, according to Coinglass data, predominantly in short liquidations.
Bitcoin’s open interest fell 0.61% in the last 24 hours. Typically, when OI falls while the price increases, it typically indicates short covering, meaning that traders who had previously bet on the price falling are buying back their positions.
“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 $2.23 trillion, following a decline of 3.53% over the last 24 hours.
Iran, Israel Exchange Strikes
Stock futures traded mixed overnight on Sunday. The Dow Jones Industrial Average Futures fell 112 points, or 0.21%, as of 8:42 p.m. EDT. Futures tied to the S&P 500, meanwhile, rallied 0.24%, while Nasdaq 100 Futures rose 0.84%.
Geopolitical tensions escalated after Iran launched ballistic missiles against Israel for the first time since the April ceasefire, Iranian state media reported. Tehran tied the strikes to Israel’s operation in Lebanon.
The strikes came days after Israel and Lebanon agreed to a ceasefire in a joint statement.
In response, the Israeli military said it struck “military targets” in western and central Iran.
Selling Pressure Beginning To Fade?
Widely followed cryptocurrency analyst and trader Ali Martinez noted that Bitcoin’s supply held at a loss has hit 10.46 million BTC, higher than levels that have historically marked “major bottoms.”
“I believe this is an important signal because selling pressure often begins to fade as fewer investors are willing to realize losses, increasing the probability of a market bottom forming,” Martinez projected.
Rekt Capital, another well-known cryptocurrency researcher, highlighted that Bitcoin fell 4.5% below the 200-week simple moving average, currently at around $60,680
“Historically, Bitcoin has deviated anything between -14% to -31% below the 200-week SMA to find its absolute Bear Market Bottom,” the analyst added.
Photo: Sodel Vladyslav / Shutterstock
