Bitcoin, Ethereum, Dogecoin Fail To Cheer Softer Inflation, China Trade Deal: Analyst Says BTC Needs To Hold Above This Level To Maintain 'Bullish Momentum'

Leading cryptocurrencies dipped on Wednesday despite lower-than-expected inflation and the new trade deal announcement with China.

What Happened: Bitcoin reached a high of $110,384.22 in the early trading hours before falling to the $108,000 region by late evening.

Ethereum's rally also got halted as the second-largest cryptocurrency took a U-turn after cruising to $2,877.63. 

Meanwhile, ETH's market dominance hit 9.8%, the highest since the end of February. BTC's share remained steady at 63.3%.

About $293 million was liquidated from the cryptocurrency market in the last 4 hours, with $198 million in bullish long bets wiped out.

Bitcoin's Open Interest fell further by 1.62% in the last 24 hours. The majority of Binance traders with open BTC positions remained short, according to the Long/Short ratio.

"Greed" sentiment continued to dominate the market, according to the Crypto Fear & Greed Index.

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The global cryptocurrency market capitalization stood at $3.41 trillion, following a decline of 1.46% in the last 24 hours.

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Stocks pulled back on Wednesday. The S&P 500 slipped 0.27% to end at 6,022.24. The tech-heavy Nasdaq Composite lost 0.50% to close at 19,615.88. The Dow Jones Industrial Average ended on the flatline, down 1.1 points to 42,865.77.

The Consumer Price Index rose 2.4% in May, undercutting the 2.5% projected by economists. The softer numbers boosted expectations for Federal Reserve rate cuts later this year. According to the CME FedWatch tool, traders priced in a 61% chance of a 25 basis point cut during September's FOMC meeting.

In other news, Trump declared a new trade agreement with China following two days of negotiations in London.

See More: Best Cryptocurrency Scanners

Analyst Notes: Cryptocurrency analyst and trader Ali Martinez said Bitcoin needs to hold above $108,300 to maintain "bullish momentum," and losing it could trigger a drop to $107,000.

Blockchain analytics firm Santiment has noticed that retail sentiment has turned bullish as Bitcoin teases all-time highs.

"There are more than double the amount of positive BTC comments vs. negative across social media, the highest ratio since Trump was elected over 7 months ago," Santiment stated.

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