Leading cryptocurrencies ticked higher on Wednesday, while stocks retreated, as Federal Reserve Chair Kevin Warsh called inflation “too high.”
Crypto Market Lifts
Bitcoin broke past $61,000 in the evening, only to get rejected and drop back to $59,000. With trading volume spiking 11% over the past day, the struggle between bulls and bears continued.
Ethereum progressed to the mid-$1,600s before a pullback, while $XRP and Dogecoin were also among the gainers.
Over $450 million was liquidated from the cryptocurrency market in the last 24 hours, with $279 million in short positions wiped out, according to Coinglass data.
Bitcoin’s open interest spiked 1.80% over the last 24 hours. BTC’s taker buy volume exceeded the sell volume over the last 24 hours, indicating a bullish sentiment in the market.
Retail and whale derivatives traders on Binance also remained bullish on the apex cryptocurrency.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.07 trillion, following an increase of 2.78% over the last 24 hours.
Stock Market Cools Down
Stocks eased on Wednesday after a recent surge in gains. The Dow Jones Industrial Average lost 13.96 points, or 0.03%, to close at 52,305.24.The S&P 500 fell 0.22% to end at 7,483.23,while the tech-heavy Nasdaq Composite slid 0.66% to close at 26,040.03.
Fed Chair Warsh said at an international conference that but declined to comment on the central bank’s likely move in the July meeting.
The CME Group’s FedWatch tool showed markets pricing a 71% likelihood of the Fed keeping the rates unchanged in July, but nearly a 50% chance of a rate hike in September.
Seller Fatigue Setting In?
Ali Martinez, a widely followed cryptocurrency analyst and trader, declared that the cryptocurrency market has reached its bottom, citing “buy” signals on the TD Sequential indicator for Bitcoin, Ethereum, $XRP, and Solana.
The monthly chart suggests a coordinated macro reversal setup,” the analyst added. “Historically, when multiple assets lock in concurrent monthly buy signals, it indicates seller fatigue and a high probability of a long-term market bottom.”
Rekt Capital, another popular chartist, noted that Bitcoin’s monthly close below the 50-month exponential moving average, currently around $63,000, aligns with patterns observed in prior cycles,
“Generally, prices tends to lose the 50-Month EMA and then turn it into new resistance before additional downside over time,” the analyst said.
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