Bitcoin’s recent rally attempt faced another setback on Tuesday, as the largest cryptocurrency struggled to maintain levels above $116,000. During the afternoon hours in the U.S., sellers re-entered the market, causing Bitcoin’s price to dip back below $113,000. The cryptocurrency was trading at approximately $112,700, reflecting a decline of nearly 2% over the last 24 hours.
Ether also experienced significant losses, falling 4% to drop below the $4,000 mark, affecting the broader cryptocurrency market, which saw predominantly negative trends. Other significant players in the crypto space, such as Solana and Litecoin, each saw declines close to 4%. Additionally, Hedera made headlines by retracting half of its initial gains related to its recent ETF listings.
Despite the bearish trend in cryptocurrencies, U.S. stock markets experienced an upward trajectory. The S&P 500 index achieved a record high of 6,900 for the first time, while the Nasdaq also set new records. Tech powerhouse Nvidia saw a notable gain of 5%, edging closer to a $4 trillion market capitalization, as CEO Jensen Huang delivered remarks at the GPU Technology Conference.
Earlier in the session, stocks related to the cryptocurrency sector appeared to follow suit with some green, only to fall sharply by day’s end. Companies like Bitfarms, CleanSpark, and HIVE saw declines of 4%-5%, while Galaxy Digital experienced a more significant drop of 8% amidst a $1.15 billion capital raise. MicroStrategy, recognized as the world’s largest corporate holder of Bitcoin, saw its shares slide by 3.7%.
Analysts at Bitfinex suggested that Bitcoin might be facing the risk of a deeper pullback despite its rebound from the low experienced on October 11. They highlighted that Bitcoin must maintain its position above the short-term holder cost basis of $113,600 to signal a potentially constructive market shift. Historically, remaining above this level marks a transition from corrective phases to accumulation phases. Conversely, a failure to hold this support level could lead Bitcoin to retrace further, potentially reaching near $97,500, which may represent the lower bound of the current consolidation range.
