Bitcoin recovers after yesterday’s decline, Dogecoin zooms 5.5%

Crypto market overview: Bitcoin, the leading cryptocurrency by market capitalisation, has recorded strong volatility in the last 24 hours with its price breaching the $71,600 mark and then falling below $69,000. BTC is recovering from yesterday’s dip and currently hovers around $70,000. 

Ethereum’s 24-hour chart reflects a similar pattern to Bitcoin as the token lost close to 1.3 per cent and is currently underway a recovery. However, Dogecoin, a memecoin initially promoted by Elon Musk, has gained more than 5.5 per cent, touching a 33-month high of $0.1988. 

The Crypto Fear and Greed Index also reflected a similar sentiment with a 3-point decline. The index currently stands at 80 points down from 83 points recorded yesterday. 

Crypto Fear and Greed Index | Image credit: Alternative.me

Talking to Republic Business, CoinDCX Research Team underlined the bearish turn of market sentiment after the court ruling against Coinbase. CoinDCX said, “Technically, BTC is consolidating within a range after an upward movement, finding support at the 20EMA 4 H level, which is robust. The key level remains at $69,000, with BTC needing to maintain its position above it. Resistance is at an all-time high, which BTC must clear for new highs.” 

The exchange’s market team believes that for ETH to see a strong upside move, it must first surpass $3,650, while $3,450 serves as a support level.

Bitcoin and Ethereum have maintained a sideways trading pattern amidst minor price corrections in the cryptocurrency market. Sharing insights about the the KuCoin charges, Rajagopal Menon, Vice President, WazirX said, “The recent criminal conspiracy charges against KuCoin have led to over $1 billion in outflows, contributing to a minor cooling down of the market sentiment.” 

“Despite selling pressure, hodlers continue to hold onto their tokens, with both BTC and ETH encountering resistance levels at $70,000 and $3,500, respectively. Bitcoin's indicators signal a bullish sentiment, hinting at a potential breakthrough of the $70,000 resistance level. However, Ethereum's indicators suggest the possibility of a price correction, despite maintaining a bullish momentum,” added Menon. 

In the last 24 hours, BTC first broke the $71,000 mark before breaking below $69,000 causing over $175 mn of long liquidations as well as over $80 mn of short liquidations. CoinSwitch Markets Desk said, “The short-selling began as a federal judge in New York ruled that SEC can proceed with its lawsuit against Coinbase for unregistered sale and offer of securities.” 

“Three major AI tokens namely OCEAN, FET and AGIX are considering merging their tokens into an ASI token with a fully diluted market cap of $7.5 billion. If this deal goes through, this could be one of the biggest developments in the crypto AI world,” added CoinSwitch. 

In other news, Fidelity Investments became the eighth institution to apply for a spot in Ethereum ETF late in the evening with the likes of BlackRock, Ark Invest etc already in line for the same. ETH prices however continued to slip during the day. 

Edul Patel, CEO of Mudrex said, “Larry Fink, CEO of BlackRock, has shown strong bullishness towards BTC, especially as its ETF saw inflows exceed $17 billion. Bitcoin's next resistance level is expected at $70,814, with the previous support level at $67,744. Ethereum also faced selling pressure, falling 3.70 per cent on the last day to settle around $3,400. The market sentiment remains extremely greedy.”