Leading cryptocurrencies retraced Wednesday, coinciding with the decline in stocks triggered by the downgrade of automobile-related shares.
| Cryptocurrency | Gains +/- | Price (Recorded at 9:15 p.m. EDT) |
| Bitcoin BTC/USD | -1.92% | $62,887.90 |
| Ethereum ETH/USD | -2.61% | $2,572.07 |
| Dogecoin DOGE/USD | -0.91% | $0.1089 |
What Happened: Bitcoin steadily retreated during U.S. trading hours, falling as low as $62,770, a day after sailing to more than one-month highs.
Whales offloaded billions of Bitcoins in the past 24 hours, locking in profits from the previous day’s highs.
A similar downtrend was observed for Ethereum which fell below $2,600 in midday trading, only to consolidate in the higher $2,500 region for the rest of the day.
Total cryptocurrency liquidations amounted to $93 million in the last 24 hours, with bullish-leveraged traders bearing the brunt of the losses.
Bitcoin's Open Interest slumped more than 3%, further indicating long liquidations.
The market sentiment continued to be "Neutral," according to the popular Cryptocurrency Fear & Greed Index.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9:30 p.m. EDT) |
| Worldcoin (WLD) | +13.57% | $2.08 |
| Notcoin (NOT) | +2.99% | $0.008202 |
| UNUS SED LEO (LEO) | +1.84% | $5.85 |
The global cryptocurrency market stood at $2.21 trillion, shrinking 2.01% in the last 24 hours.
Stocks pulled back Wednesday after notching two straight days of record closing. The Dow Jones Industrial Average retreated 293.47 points, or 0.70%, to close at 41,914.75. The broad-based index S&P 500 slid 0.19% to end at 5,722.26. Both the blue-chip indexes closed at record highs. The tech-focused Nasdaq Composite defied the retreat to close marginally higher at 18,082.21.
Auto stocks contributed to the fall after analysts at Morgan Stanley downgraded stocks of Ford Motor Co. F and General Motors Co. GM. with both retreating 4.14% and 4.89%, respectively.
Investors also parsed new single-family home sales data that fell 4.7% in August from the prior month.
See More: Best Cryptocurrency Scanners
Analyst Notes: Noted cryptocurrency analyst Ali Martinez highlighted the significance of $63,300 as Bitcoin's support level.
"If it holds, BTC can rise to $65,500, but if it doesn’t, BTC will likely dive to $60,365!" the researcher remarked.
With the top cryptocurrency sliding below the indicated level, it remains to be seen whether Martinez’s prediction turns out to be correct.
Widely-followed cryptocurrency trader, going by the pseudonym Coach K Crypto drew attention to Bitcoin clocking 88% gains on average in the fourth quarter.
"If we hit that average, we’re looking at $120,000. Now, imagine what that would do for altcoins," the trader said.
Photo by stockphoto-graf on Shutterstock
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