Cryptocurrency markets saw a relatively subdued trading day on Monday, characterized by mixed price action among leading digital assets. Despite initial attempts by bulls to push prices higher, significant resistance stifled any significant upside breakout. Notably, Bitcoin briefly breached the $70,000 threshold during trading hours, only to face rejection shortly after, retreating to the $69,500 zone. Similarly, Ethereum flirted with the $3,700 mark before settling around $3,660, failing to sustain its upward momentum.
During the past 24 hours, the cryptocurrency market witnessed heightened volatility, resulting in the liquidation of 51,865 traders, with total liquidations amounting to $95 million. Long liquidations dominated the scene, comprising 78% of the total, signaling the prevalence of leveraged trading activity and the increased risk associated with such positions.
Bitcoin’s liquidation heatmap revealed concentration points for leveraged positions around critical price levels, such as $70,826 and $70,320, indicating potential areas of vulnerability for traders with leveraged exposure.
Despite the market’s fluctuations, there was a notable surge in the number of traders opening long positions on Bitcoin, reflecting prevailing optimism and anticipation of further price increases. This sentiment was further evidenced by the strengthening “Greed” sentiment on the Cryptocurrency Fear & Greed Index, suggesting an increase in buying pressure.
In terms of top gainers over the past 24 hours, cryptocurrencies like Oasis (ROSE), Gnosis (GNO), and Injective (INJ) posted significant gains, indicating pockets of bullish activity within the broader market.
However, the overall cryptocurrency market cap experienced a slight decline of 0.67% over the past 24 hours, standing at $2.53 trillion. This modest retracement underscores the ongoing volatility and uncertainty prevalent in the cryptocurrency markets.
Meanwhile, traditional stock markets saw positive trading, with major indices like the Dow Jones Industrial Average and the S&P 500 reaching record highs. The rally in equities comes ahead of key events such as the Federal Reserve’s rate decision and the release of May’s consumer price index data, both of which are closely watched by investors for insights into inflation and monetary policy.
Looking ahead, cryptocurrency analysts offer varying perspectives on market trends. While some, like Timothy Peterson, point to bullish signals such as Bitcoin’s 200-day Moving Average reaching an all-time high, others, like Michaël van de Poppe, see potential buying opportunities in altcoins that have been relatively stagnant this year.
Overall, the cryptocurrency market remains dynamic and subject to rapid fluctuations, with traders and investors navigating both opportunities and risks in this evolving landscape.