Bitcoin, Ethereum, Dogecoin Slide On Weaker-Than-Expected Job Growth: Analyst Predicts 'Massive Breakout' Incoming For Markets—Here's Why

Leading cryptocurrencies slipped Tuesday after weak private-sector job growth dampened investor sentiment.

What Happened: Bitcoin dipped to an intraday low of $104,232.70 in early trading hours and fluctuated between the low $105,000s and high $104,000s for the rest of the day.

Ethereum surged to $2,670 but failed to sustain the rally, retreating to the early-$2,600 region. Compared to Bitcoin, the second-largest cryptocurrency recorded higher trading volumes during the day.

These moves led to the liquidation of nearly $150 million worth of bullish bets, while $64 million in shorts were erased. 

That said, about $492 million in Bitcoin shorts were at the risk of liquidation if Bitcoin reclaims $107,000.

Bitcoin's Open Interest declined by 0.47% in the last 24 hours, matching the fall in its spot price. Interestingly, the majority of the top traders on Binance with open BTC positions placed bullish bets on the apex cryptocurrency.

The "Greed" sentiment weakened from 62 to 57 in the last 24 hours, according to the Crypto Fear & Greed Index. 

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.3 trillion, following a dip of 0.63% in the last 24 hours. 

Stocks were a mixed bag on Wednesday. The Dow Jones Industrial Average slipped 91.90 points, or 0.22%, to end at 42,427.74. The S&P 500 eked out a narrow gain of 0.01% to close at 5,970.81. The tech-focused Nasdaq Composite rose 0.32% to finish at 19,460.49.

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Dow's correction comes after private-sector job growth plunged to a more than two-year low in May, raising investor concerns that trade headwinds are beginning to bite.

Trump, who has been critical of the Federal Reserve's policy lately, pressed Chair Jerome Powell to cut interest rates after the numbers were out.

See More: Best Cryptocurrency Scanners

Analyst Notes: Blockchain research firm Santiment noticed a significant spike in Bitcoin's new wallets this week, even as it consolidated around $105,000.

"Growth in a network’s on-chain activity is generally a good sign. This is something to keep an eye on as crypto markets range," Santiment added.

Widely followed cryptocurrency analyst Michaël van de Poppe projected that the market is preparing for a "massive breakout."

He said that the U.S. Dollar Index and bond yields have begun to fall, while the Chinese yuan has strengthened against the dollar—a precursor to Ethereum's rally.

Photo Courtesy: Travis Wolfe on Shutterstock.com

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