Major coins traded in the green on Monday as investors responded positively to the mildly encouraging first-quarter earnings of tech giants such as Google parent Alphabet Inc Class A GOOGL and Microsoft Corp MSFT.
| Cryptocurrency | Gains (+/-) | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +2.99% | $28,288 |
| Ethereum ETH/USD | +1.38% | $1,866 |
| Dogecoin DOGE/USD | +1.60% | $0.080 |
What Happened: Bitcoin remained stable for the most part of Tuesday, but just after the U.S. stock markets closed, it saw a sudden surge.
At the time of writing, the global crypto market capitalization stood at $1.18 trillion, an increase of 2.01% over the last day.
The U.S. stock market slid on Tuesday after First Republic Bank‘s earnings report reignited concerns about the broader sector. The S&P 500 finished 1.58% lower while The Nasdaq Composite dropped 1.98%.
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Analyst Notes: “Bitcoin was initially lower as Wall Street takes some risk off the table. Bitcoin is still showing it is a risky asset as it is in the red along with all the other major asset classes. Earnings risk, more Fed tightening, and regulatory fears are still weighing on cryptos. The return of banking fears helped send some flows Bitcoin's way. Bitcoin is higher by 0.9% on the session after news that First Republic is fighting for survival.”
“Coinbase made the decision to sue the SEC for clarity on crypto regulations in the US. This could put pressure on the SEC to make a decision a little sooner than they were anticipating. Coinbase clearly wants to be able to operate in the US and they are hoping this lawsuit will give them the clarity a lot sooner so they can make the right business decision,” said Edward Moya, Senior Market Analyst at OANDA.
According to crypto analyst Michael Van de Poppe, the market structure for Bitcoin is not considered bearish until it reaches the $25,000-resistance level. Despite experiencing a substantial period of fluctuation between $15,000 and $20,000, even a collapse in FTX was unable to bring Bitcoin down to $12,000. "No need to expect $10,000, yet, after a 10% correction."
Pseudonymous trader, Altcoin Psycho, has observed that the 2018 Bitcoin bear market saw a notorious pattern called the “Bart” formation, resembling the head of Bart Simpson, that often resulted in liquidation of late BTC bulls.
Altcoin Psycho now warns that he is witnessing similar Bart patterns on Bitcoin’s low timeframe charts. "The only thing that makes me a little bit nervous is…you've got this liquidity trap right here (above $30,000), and you do have quite a bit of hot air (from $19,000 to $25,000). It's hard to say exactly if we're going to just straight Bart down."
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