Bitcoin, Ethereum Slip, Dogecoin Rises As Thin Liquidity Bogs Crypto Market Down: Analyst Predicts King Crypto’s Move To $78.7K

Leading cryptocurrencies wobbled in ranges Tuesday as Federal Reserve Chair Jerome Powell’s dovish comments failed to heighten investors’ risk appetite. 

What Happened: Bitcoin slipped further to the early $62,000s as defunct exchange Mt.Gox’s repayment plan looms large. Ethereum also pulled back to the early $3,400 zone. 

The muted trading activity could be due to the Fourth of July holiday effect.

In the past 24 hours, 29,929 traders were liquidated, with the total liquidations coming in at $64.32 million. Long liquidations amounted to $39.74 million. 

Despite the contraction in price, Bitcoin’s Open Interest rose 2.13% in the last 24 hours, indicating that new short positions were opened. This is construed as a bearish signal. 

These observations were backed by a sharp spike in the number of shorts taken for Bitcoin against the longs, as indicated by the Longs/Shorts Ratio.

The Cryptocurrency Fear & Greed Index flashed a “Neutral” signal, implying no clear bias for either the bulls or the bears. 

Top Gainer (24-Hours)

The global cryptocurrency market cap stands at $2.3 trillion, following a contraction of 0.35% in the last 24 hours.

The stock market advanced on Tuesday. The Dow Jones Industrial Average gained 162.33 points, or 0.41%, to end at 39,331.85. The S&P 500 rose 0.62% to hit a record close at 5,509.01. The tech-focused Nasdaq Composite surged 0.84% to end at a record high of 18,028.76. 

The rally comes after Federal Reserve Chair Jerome Powell welcomed progress on inflation while speaking at the European Central Bank forum, boosting investors’ expectations of rate cuts later in the year.

Markets will be closed for the Fourth of July holiday. Investors will be on the lookout for the June jobs data, due to be released Friday.

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Analyst Notes: Widely followed cryptocurrency analyst Ali Martinez underscored the importance of $65,795 for Bitcoin, breaching which can catapult the asset to new peaks. 

“If BTC can break past this level, the next significant target is $78,700,” Martinez explained. 

Popular cryptocurrency researcher Emperor Osmo dubbed the ongoing bull market as one of the most boring. 

Osmo noted that Bitcoin’s volatility and volumes are at yearly lows, while the asset has been consolidating for a long time. This, they believe, was a sign of an imminent big move.

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