Leading cryptocurrencies bounced back Tuesday, a day after heavy sell-offs sent prices plummeting to an 8-week low.
What Happened: Bitcoin witnessed a steady ascent during the day, briefly rising above $62,000. The relief rally came after the King Crypto dipped below $60,000 on Monday on fears of Mt.Gox's repayment plans.
Buying pressure was back forEthereum, seemingly boosted by SEC chair Gary Gensler'scomments about the review of spot ETFs going "smoothly."
As many as 32,307 traders were liquidated in the last 24 hours, with total liquidations at $87.59 million. Short liquidations accounted for 64% of the total.
The rally fueled a 0.19% jump in Bitcoin's Open Interest in the last 24 hours, a sign that fresh money has come into the market.
The number of traders taking bearish bets on Bitcoin rose vis à vis those bullish on the asset in the last 24 hours.
The market attitude recovered sharply to the optimistic side. The Cryptocurrency Fear & Greed Index increased from 30 to 46, yet the overall sentiment remained one of “Fear.”
Top Gainer (24-Hours)
The global cryptocurrency market cap stands at $2.28 trillion, following an increase of 2.06% in the last 24 hours.
The stock market rebounded strongly Tuesday after days of negative action. The S&P 500 gained 21.43 points, or 0.39%, to close at 5,469.30. The tech-heavy Nasdaq 100 surged 1.26% to end at 17,717.65. The Dow Jones Industrial Average closed 0.76% lower at 39,112.16.
The uptick was spurred by a 6.7% jump in shares of AI giant NVIDIA Corp. (NASDAQ:NVDA), the major catalyst driving the markets lately. Its decline on Monday pulled the broader market index and tech stocks down.
Investors' next focus will be May's personal expenditure data, considered the Federal Reserve's preferred inflation gauge, due for release on Friday.
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Analyst Notes: Widely followed analyst Ali Martinez reiterated that the current market situation is "the perfect time" to buy Bitcoin's dip.
His assertions were based on the study of Relative Strength Indicator (RSI), which is in the oversold territory. Previous such instances in history preceded huge upswings for the King Crypto.
Popular cryptocurrency trader Rekt Capital highlighted Bitcoin's continued consolidation in the "post-halving re-accumulation range."
The range high resistance is around $71,500, while the range lows is at $60,600, the traders stated.
Photo by SvetlanaParnikova on Shutterstock
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