Bitcoin
and other cryptocurrencies slipped on Tuesday but remained near relatively elevated levels after a recent rally. While cryptos may have lost some speed, the technical market backdrop suggests more gains could be coming.
The price of Bitcoin has fallen less 1% over the past 24 hours to below $34,700, slipping further from its recent peak near $36,000, which was reached last week and marks the token’s highest point since cryptos slid into a brutal bear market in May 2022. The largest digital asset has rallied some 30% in a matter of weeks, snapping out of a multi-month lull that had seen historically low volatility and trading volumes.
“Bitcoin is poised to digest its gains in the coming days, noting it has seen a loss of short-term upside momentum near resistance around $35,900,” said Katie Stockton, managing partner at technical research firm Fairlead Strategies.
While there are signs that Bitcoin has lost some of its momentum—holding around the $35,000 level for the past week—the technical backdrop still looks good, and may help Bitcoin continue to outperform the
Dow Jones Industrial Average
and
S&P 500.
“We maintain an intermediate-term bullish stance, noting our weekly indicators point higher,” said Stockton. “Should Bitcoin see another breakout, it would put next resistance near $42,200.”
Beyond the technical backdrop, crypto-native and macroeconomic catalysts alike continue to buoy token prices.
Bulls remain optimistic that U.S. regulators will approve the first spot Bitcoin exchange-traded fund (ETF), which would be expected to usher in a fresh wave of investor interest in digital assets. Geopolitical risks from conflict in the Middle East have also renewed calls for Bitcoin as “digital gold,” with signs that traders have flocked to the token as a haven asset. Expectations that the Federal Reserve will not have to raise interest rates any further also has boosted sentiment.
Beyond Bitcoin,
Ether
—the second-largest crypto—dropped 1% to $1,875. Smaller tokens also were muted, with
Cardano
down 2% but
Polygon
remaining above flat. Memecoins were mixed, with
Dogecoin
up 2% and
Shiba Inu
down less than 1%.
Write to Jack Denton at jack.denton@barrons.com
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