A new local peak in crypto?: Explore the latest movements in the crypto market as it faces challenges sustaining recent gains. With market capitalization at $2.04 trillion and Bitcoin struggling below $58.7K, analysts predict a potential dip towards $53K. Stay informed on key resistance levels and the impact of the upcoming Fed rate decision on market trends.
A new local peak in crypto?
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The crypto market started the weekend on a positive note but has been unable to sustain gains in recent days, losing 2.8% in the last 24 hours to reach a capitalisation of $2.04 trillion. This retreat from the $2.12 trillion area looks like a new lower local high, continuing the March series, with the potential to return below $2 trillion and consolidate there.
Bitcoin climbed above $60.5K on Saturday but failed to consolidate at this level, running into resistance in the form of the 50-day moving average. At the start of active trading in Europe, bitcoin was trading below $58.7K. It is not out of the question that the momentum of the short-term rally has run its course and that a fresh move towards the lower end of the trading range at $53K will take place. However, we do not expect the markets to make any significant moves until the Fed’s rate decision on Wednesday evening.
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Litecoin has technically reversed from the upper boundary of the descending range that has been in place since May and from the 50-day moving average that has been acting as resistance all along. For the past month, the coin has found support near the $60 level, not far from the current $62.8. A break below this level could accelerate the sell-off. The ability to hold above will allow for a scenario of a break in the multi-month downtrend.
News Background
According to CryptoQuant, Ethereum traders’ sentiment requires a small push for the asset price to go into ‘parabolic’ growth. Such a scenario will become possible when the funding rate on ETH perpetual contracts exceeds 0.015%.
Coinbase attributes Ethereum’s underperformance to the current market structure combined with weakening on-chain metrics.
Bitfinex notes that altcoins remain relatively strong despite Bitcoin’s decline, which could be a sign that investors are reconsidering capital protection during market uncertainty.
MicroStrategy’s founder, Michael Saylor, said the company acquired an additional 18,300 BTCs for $1.11 billion (at $60,408 per coin). Thus, MicroStrategy’s total holdings are 244,800 BTC, acquired for approximately $9.45 billion ($38,585 per coin).
The consumer advocacy group Consumers’ Research released a report accusing Tether of a lack of transparency regarding its USD reserves. The report’s authors drew an analogy to the situation that led to the collapse of FTX and Alameda Research.
