- Bitcoin and other cryptocurrencies experienced a setback on Tuesday, but the technical market landscape indicates that gains in the recent month-long rally could continue.
- Crypto bulls remain optimistic about the approval of the first spot Bitcoin exchange-traded fund (ETF) by U.S. regulators in the near future.
- Beyond Bitcoin, Ether, the second-largest token benefiting from hopes of being held in an ETF, dropped by less than 1% to $2,050.
Bitcoin and cryptocurrencies continued to lose value on Tuesday: What will be the next target for Bitcoin price? Can the decline persist?
Can Bitcoin Price Stay Strong?
Bitcoin and other cryptocurrencies experienced a setback on Tuesday, but the technical market landscape indicates that gains in the recent month-long rally could continue. Bitcoin’s price dropped over 1% in the last 24 hours, falling below $36,500, and the largest digital asset retreated further after approaching $38,000 last week – the highest level since the severe bear market entry for cryptocurrencies in May 2022.
Bitcoin recorded an increase of over 30% in less than a month, prompting calls for a new bull market, while the recent rally lifted cryptocurrencies out of a long period of subdued volatility and historically low trading volumes. Katie Stockton, Managing Partner at Fairlead Strategies, said:
“Bitcoin support is around $30,900 at the 50-day moving average. The long-term outlook is improving.”
Bitcoin outperformed the Dow Jones Industrial Average and the S&P 500 by a significant margin in the last month, and traders are mostly bullish due to catalysts related to crypto. However, the macro backdrop has also improved for all risky assets.
Markets believe the rally will continue
Crypto bulls continue to be optimistic about U.S. regulators approving the first spot Bitcoin ETF in the near future, expecting it to bring a new wave of investor interest in digital assets.
Looking closer, according to analysts, Bitcoin has momentum, and technical analysis indicates signs that the cryptocurrency could continue to gain. Stockton continued:
“Bitcoin rose further last week and broke above resistance near $35,900. This implies a breakout that expects completion above this level on Sunday. A breakout will support a higher continuation towards the secondary resistance near $42,200.”
Beyond Bitcoin, Ether, the second-largest token benefiting from hopes of being held in an ETF, dropped by less than 1% to $2,050. Smaller cryptocurrencies or altcoins were more mixed, with Cardano dropping 3% and Polygon rising 8%. Meme coins were weaker, with Dogecoin dropping 4% and Shiba Inu losing 5%.
