Market Overview

The crypto market cap dropped by 1.65% over the past 24 hours to $2.41 trillion, with most actively traded coins also declining. NEAR (+1.1%), Tron (+0.3%), and (āˆ’0.5%) are performing relatively better than the market. The dayā€™s underperformers include (āˆ’11.4%), (āˆ’6.1%), and Polkadot (āˆ’6.1%).

Fig. 1. The crypto market has retreated from local highs but has not lost its optimism.

Bitcoin made a fresh attempt to breach $73K on Wednesday but once again encountered a strengthening sell-off, retreating to $71K by the start of active European trading. BTC remains above the 50-day moving average, which has already turned upwards, reinforcing the short-term bullish sentiment. However, we will need to wait for the price to rise above $75K before we can speak of the market entering an active bullish phase.

Fig. 2. Bullish signal: Bitcoin is trading above the 50-day moving average, which is trending higher.

Ethereum retreated by 4% to $2.18K from its peak the previous day. This pullback is not yet cause for concern and appears more like a short-term correction while the overall sentiment remains optimistic. We see fluctuations within the $2.0Kā€“$2.4K range as market noise; a breakout beyond this calm consolidation zone would signal the start of a directional move.

Fig. 3. Ethereum has retreated to the centre of the $2Kā€“$2.4K consolidation range.

News Background

Analysts are sceptical about the sustainability of Bitcoinā€™s growth. Uncertainty regarding the fulfilment of conditions, the threat of a new escalation, and macroeconomic pressure could limit the growth of the crypto market, according to LVRG.

The key conditions for Bitcoin to resume growth are its consolidation above the $74K level and a subsequent break above $80K. Breaking through these levels could trigger a new wave of optimism and restore the uptrend, Galaxy Digital CEO Mike Novogratz said.

The US SEC has described its previous practice of prosecuting crypto companies under former chairman Gary Gensler as misguided. The regulator reported that 95 such cases had been initiated since 2022.

Zahir Abtikar announced the closure of the Split Capital hedge fund, citing the ineffectiveness of this business model for the cryptocurrency industry. According to him, the number of high-quality projects is declining, and many cryptocurrency creators are simply imitating the business.

The FxPro Analyst Team