Leading cryptocurrencies slid further Tuesday, as long-term investors continued to chase profits.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:30 p.m. ET) |
| Bitcoin BTC/USD | -2.18% | $92,538.27 |
| Ethereum ETH/USD | -3.32% | $3,335.13 |
| Dogecoin DOGE/USD | -4.39% | $0.3886 |
What Happened: Bitcoin fell to an intraday low of $90,770 before recovering to $92,500 in overnight hours. The corrective action has wiped all of the gains made over the week, halting the leading cryptocurrency’s rise to $100,000.
Long-term Bitcoin holders have offloaded 728,000 coins in the past 30 days, marking the largest sell-off since April.
Over $364 million in long positions were liquidated in the past 24 hours, out of a total of $477 million. Bitcoin's Open Interest also declined by over 5% in the last 24 hours.
That said, the number of Binance traders going long on Bitcoin still heavily outpaced those betting against the asset, according to the Long/Shorts Ratio indicator.
Additionally, around $695 million in leveraged shorts risked liquidation if the apex cryptocurrency rebounds to $98,000.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 8:30 p.m. ET) |
| Algorand (ALGO) | +13.71% | $0.3031 |
| Fantom (FTM) | +7.27% | $1.08 |
| Injective (INJ) | +7.09% | $29.61 |
The global cryptocurrency market capitalization stood at $3.18 trillion, following a contraction of 2.29% in the last 24 hours.
Stocks climbed to new records Tuesday. The Dow Jones Industrial Average rose 123.74 points, or 0.28%, to close at 44,860.31, while the S&P 500 gained 0.57% to end at 6,021.63. Both the broad-based indexes closed at record highs. Tech-focused Nasdaq Composite added 0.63% higher to close at 19,175.58.
Investors parsed the minutes from the Federal Reserve meeting, which revealed a consensus among policymakers that inflation was gradually reducing.
Market participants raised the odds of a 25 basis-point cut in next month's FOMC meeting to 57.7%, up from 52.3% a day earlier, according to the CME FedWatch tool.
The personal consumption expenditure (PCE) data, considered the Fed's preferred inflation gauge, is slated to be released Wednesday.
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Analyst Notes: In a note shared with Benzinga, Haider Rafique, Global Chief Marketing Officer at cryptocurrency exchange OKX, commented on why Bitcoin was fumbling around the $100,000 mark.
“There’s definitely profit-taking at these levels. The average holding price is around $30,000, representing a two to three-times upside for investors. So, there’s significant sell pressure, but we also see equal buyback pressure," Rafique stated.
He added, "Many people have had $100,000 as a price target for liquidation. We’re seeing institutions like MicroStrategy buying and holding significant supply, which naturally reduces available liquidity on exchanges and creates upward momentum."
Widely-followed cryptocurrency analyst Ali Martinez spotted a ‘buy signal' from the TD Sequential indicator on Bitcoin's hourly chart.
Additionally, with the Relative Strength Index (RSI) forming a higher low, a bullish divergence was witnessed, potentially helping Bitcoin to rebound to $95,000-$96,000.
Photo by CMP_NZ on Shutterstock
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