The cryptocurrency market experienced a widespread downturn on Tuesday, with Bitcoin falling below the $65,000 support level in the short term, and several mainstream altcoins seeing double-digit declines.
According to data from Bitpush, Bitcoin opened the day at $66,665 before entering a downward trend, dropping to as low as $64,300 at one point. However, it rebounded from the $64,000 support level after noon, with the trading price at $65,056 at the time of writing, representing a 2.36% decrease in the past 24 hours.
Altcoins faced heavy selling pressure, with only six out of the top 200 altcoins by market capitalization seeing gains in the past 24 hours. Convex Finance (CVX) and aelf (ELF) saw increases of 14.6% and 14.1% respectively, while FTX Token rose by 7%. Among the top 200 tokens, 80 experienced double-digit declines, with Conflux (CFX), Core (CORE), and cat in a dogs world (MEW) seeing the largest decreases at 19.7%, 19.4%, and 19.2% respectively.
Coinglass data revealed that approximately $372 million in long leverage positions were liquidated in the past 24 hours, while short positions saw liquidations totaling $61.8 million.
The total market capitalization of cryptocurrencies currently stands at $2.32 trillion, with Bitcoin’s dominance at 54.5%.
In the stock market, NVIDIA surpassed Microsoft to become the world’s most valuable publicly traded company. The S&P 500 and Dow Jones indices rose by 0.25% and 0.15% respectively at the close, while the Nasdaq index remained relatively stable. Analysts noted that despite the lack of interest rate cuts, stock prices continued to rise due to sustained growth in profits of high-tech companies and economic expansion.
Spot premiums were high, with funding rates turning negative for the first time in months. Analysts from Secure Digital Markets observed a decrease in speculative activities among market participants, which could be attributed to the decline in Bitcoin’s price below the 50-day moving average, creating pressure on the medium-term trend.
For users experiencing losses due to selling, market analyst CrediBULL Crypto advised patience, noting the return of spot premiums and negative funding rates for the first time in months. He emphasized that Bitcoin was forming a bottom above $60,000 and urged patience.
Investors can gauge market sentiment by measuring the long/short ratios of top traders. Coinglass data showed an increase in the long/short ratio of major traders on Binance and OKX, indicating strong demand for leverage long positions despite Bitcoin’s failure to hold the $68,000 support level.
Despite the current market conditions, analysts from CryptoQuant highlighted a lack of bullish momentum due to stagnant growth in Bitcoin holdings by whales and declining stablecoin liquidity. They noted that the market structure remained solid but lacked a clear upward trend.
Bitcoin founder and CEO Max pointed out that the current market situation mirrored previous cycles, with both Bitcoin and altcoins repeating patterns from past cycles. He stressed the importance of monitoring the performance of altcoins relative to Bitcoin to determine the best assets to hold.
Market analyst Rekt Capital noted that the current price trend resembled the 60-day period following previous halvings, and breaking the downward trend line could trigger a price reversal.
Experienced trader Peter Brandt compared the current Bitcoin chart to fractals seen in the daily chart of gold in 2008-2009 and 2020-2024, suggesting a potential bullish trend ahead.
