Bitcoin Makes a Retreat as it Struggles to Break Through Key Resistance Level
The cryptocurrency market is currently facing a setback due to major assets being unable to break through critical resistance levels.
In the last 24 hours, Bitcoin (BTC) has experienced a decrease of 4.7%, with its current value at $58,450, as reported by CoinGecko. This pullback occurred after Bitcoin was unable to sustain a position above the significant resistance level of $61,000.
Following a turbulent market downturn last week, Bitcoin’s accelerated losses began when it fell below $61,000, marking this as a critical level that BTC prices have struggled to surpass.
In response to the sell-off, U.S. spot Bitcoin exchange-traded funds (ETFs) saw inflows totaling $81.4 million, according to Sosovalue. While ETFs from Franklin Templeton and BlackRock experienced daily inflows, capturing $3.42 million and $2.68 million respectively, institutions were still active participants in the market dip.
Ethereum (ETH) showed a similar decrease of 4.8% within the past day, now trading at $2,625. Despite a brief return to the $2,700 range yesterday, ETH also failed to hold its ground against the bears.
Despite the pullback, spot Ether ETFs saw their third consecutive day of inflows, accumulating $10.8 million into the sector and raising the market cap of Ethereum ETFs by $40 million in the past three days.
Additional key assets experienced comparable losses, with Solana (SOL) dropping by 4%, Polkadot (DOT) by 3.5%, and Toncoin (TON) by 9.5%, even after formerly ranking as the best-performing top 100 cryptocurrency. The collective cryptocurrency capitalization decreased by 4.5%.
Today’s top performers include Aave (AAVE) with a gain of 5.3%, Flare (FLR) with 2.6%, and Litecoin (LTC) with an increase of 1.7%. Conversely, projects within the Open Network ecosystem, such as Notcoin (NOT), Toncoin, and Dogwifhat (WIF), faced substantial drawdowns, with losses ranging from 9.4% to 12.5%.
Keeping track of the broader crypto market trends, meme coins sustained a 4.6% decrease in their combined market cap, which is consistent with the overall decline in cryptocurrency values.
Moreover, base meme coins demonstrated the most significant loss for the day at 9.2%, followed by cat-themed tokens at 8.2%, and modular blockchain assets at 7.7%. Notably, no non-stablecoin segment experienced an aggregate gain during this time period.
In terms of leverage trading, liquidations incurred losses of $146.2 million, with long positions accounting for 82.7% of these losses, as reported by CoinGlass. Additionally, low Ethereum gas prices and a high burn rate continue to add to the supply of Ether, with forecasts indicating that Ether’s supply could return to pre-merge levels in the next four months.
Simultaneously, global stock markets predominantly observed minor gains. The Nasdaq Composite Index rose by 0.029%, Japan’s Nikkei 225 climbed by 0.78%, South Korea’s KOSPI increased by 0.88%, and Australia’s All Ordinaries recorded a gain of 0.17%. On the contrary, Taiwan’s Taiex index and Hong Kong’s Hang Seng experienced slight declines of 0.60% and 0.025% respectively.
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