Major cryptocurrencies experienced a significant downturn late Sunday as traders looked forward to forthcoming inflation data that could provide insight into the direction of monetary policy.
Crypto Market Lacks Momentum
Bitcoin dipped below the $74,000 mark late last night before bouncing back into the upper $74,000 range. Ethereum fluctuated within the high $2,000 range, while XRP and Dogecoin also saw notable declines.
Data from Coinglass reveals that approximately $1 billion was liquidated from the crypto market in the past 24 hours, primarily from bullish long positions.
During the last day, Bitcoin’s open interest fell by 0.75%. The sentiment among institutional investors, often referred to as “smart money,” turned “extremely bullish.”
The Crypto Fear & Greed Index indicated a prevailing atmosphere of “fear” in the market.
Top Performers (Last 24 Hours)
| Cryptocurrency | Change +/- | Price (As of 8:20 p.m. ET) |
| Pepe (PEPE) | +4.70% | $0.00000505 |
| Arbitrum (ARB) | +1.50% | $0.1703 |
| PAX Gold (PAXG) | +0.80% | $4,094.24 |
The total market cap for cryptocurrencies was recorded at $2.559 trillion, reflecting a decrease of 2.80% in the last 24 hours.
Looking Ahead
Analysts will focus on Tuesday’s consumer price index report and the producer price index report on Friday, seeking new insights into the Federal Reserve’s future actions.
The CME FedWatch tool indicates a 78.5% chance of a rate hike during the Fed’s final meeting of the year.
Is Bitcoin Facing a Rebound?
Ali Martinez, a prominent cryptocurrency analyst, shared a daily Bitcoin chart highlighting the price maintaining the 200-day simple moving average around $73,000-$74,000.
His analysis positions this level as possibly the “last opportunity to invest in Bitcoin before a potential rebound.”
Michaël van de Poppe, another notable voice in crypto analysis, pinpointed $75,000 as a crucial support level for Bitcoin, cautioning that failure to maintain this level could trigger a sharp fall and resulting liquidations in leveraged positions.
“If BTC can’t maintain the $75,000 level, there’s little to prevent a significant drop,” the analyst warned. “This makes it a critical area, and defining risk becomes straightforward.”
Should #Bitcoin fail to sustain the $75,000 level, a steep decline could follow.
This is a crucial area, making risk assessment straightforward.
It could either stabilize here and shift social media’s focus, or we might witness a significant plunge and the reaction will be…
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