Leading cryptocurrencies edged higher on Tuesday as investors weighed the prospects of a U.S.-Iran peace agreement after weeks of fighting.
From ‘Extreme Fear’ to ‘Fear’
Bitcoin moved back and forth between the early $63,000s and mid-$64,000s, with trading volume easing significantly.
Ethereum bulls struggled to push the cryptocurrency above $1,800, while XRP and Dogecoin traded in the red.
Over $200 million was liquidated from the cryptocurrency market in the last 24 hours, with bearish shorts making up $137 million, according to Coinglass data
Bitcoin’s open interest fell 0.25% over the last 24 hours. A drop in open interest alongside an increase in spot price typically indicates that short sellers are buying back their positions.
The market sentiment improved from “Extreme Fear” to “Fear,” according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.19 trillion, following an increase of 0.71% over the last 24 hours.
Stocks on a Tear
The stock market extended its winning streak on Tuesday. The Dow Jones Industrial Average surged 907.47 points, or 1.71%, to end at 54,085.88. The S&P 500 rallied 1.79% to close at 7,736.52, while the tech-focused Nasdaq Composite jumped 2.59% to settle at 26,584.99. The S&P 500 and the Dow closed at all-time highs.
The rally coincided with Treasury Secretary Scott Bessent signalling the U.S. and Iran could reach an agreement as early as Wednesday to reopen the Strait of Hormuz, restoring free passage for commercial shipping.
Analyst Predicts Big BTC Rally Before Limited Corrections
Ali Martinez, popular cryptocurrency chartist and trader, identified $64,300 as the “key level to watch” for bullish confirmation.
“A 4-hour close above $64,300 could confirm the breakout and open the door to a rally toward $65,500 or even $66,500,” the analyst projected.
Michaël van de Poppe, another popular cryptocurrency commentator, forecast Bitcoin’s next upward leg to $85,000, where the 50-week moving average sits as key resistance on the weekly chart.
“I don’t think we’ll dive deeper as much for #Bitcoin as of yet, as most of the pain [90-95%] of the bear market is already in,” Van De Poppe added.
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