Bitcoin, Ethereum and other major coins traded mixed at press time on Tuesday evening as the global cryptocurrency market cap rose 0.8% to $912.5 billion over 24 hours.
|Cryptocurrency||24-Hour % Change (+/-)||Price|
|Shiba Inu (SHIB)||+28.5%||$0.00001046|
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Why It Matters: Two of the largest cryptocurrencies showed some strength on Tuesday. Bitcoin and Ethereum touched intraday highs of $21,620.63 and $1,185.43 respectively before retreating.
Cryptocurrencies followed stocks in retreat. S&P 500 and Nasdaq futures were down 0.35% and 0.33%, respectively, at press time after having ended Tuesday 2.45% and 2.5% higher.
OANDA senior market analyst Edward Moya said cryptocurrency traders have been “walking a lonely road” and no one knows how it will go. However, the market is “seeing some buyers emerge” as selling pressure may have been overdone.
“Crypto is not going away and some investors are starting to believe further downside might be limited,” wrote Moya, in a note seen by Benzinga.
GlobalBlock analyst Marcus Sotiriou said Bitcoin faces strong resistance at the $21,300 mark, with the next target being $23,500 provided shorts get squeezed.
“Bitcoin seems primed for more upside relief in the short term, as futures funding is starting to get negative on the way up, after being neutral yesterday. This means that the majority of players in the futures market are entering short positions whilst price is rising, which could lead result in a short squeeze.”
Cryptocurrency trader Justin Bennett said “signs of breakthrough” have started to develop in the market but the bottom is still not in.
Seeing a few breakdowns starting to develop.
Bottom isn’t in IMO.
— Justin Bennett (@JustinBennettFX) June 21, 2022
Chartist Ali Martinez tweeted that people were still searching for “signs of capitulation” even as Bitcoin has fallen from $69,000 to a low of $17,600. He said while it could potentially touch the $16,000-$14,000 level in another downswing, it is impossible to time the bottom. He suggested investors use dollar-cost averaging all the way.
#Bitcoin goes from $69,000 to $17,600 and people are still looking for signs of capitulation…
Yeah! There can be another downswing to $16,000-$14,000, but be aware that you will never time the $BTC bottom. DCA all the way!
— Ali Martinez (@ali_charts) June 21, 2022
Market behavior analytics platform Santiment noted that the ratio of Bitcoin’s supply continues to stay low at levels last seen in November 2018.
“This is a good signal of limited future selloff risk. In the meantime, [Tether] supply continues skyrocketing on to exchanges, indicating greater buying power,” tweeted Santiment.
The ratio of #Bitcoin‘s supply continues staying low at levels last seen in November, 2018. This is a good signal of limited future selloff risk. In the meantime, #Tether supply continues skyrocketing on to exchanges, indicating greater buying power. https://t.co/8uaYXatxnP pic.twitter.com/wYLkqQqQuO
— Santiment (@santimentfeed) June 21, 2022
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