Crypto analyst Benjamin Cowen foresees a Bitcoin dip at $48,000, while LunarCrush data notes a surge in Bitcoin’s social dominance. Additionally, Michael Van de Poppe is optimistic about Ethereum, signaling potential for a breakout above $2,150.
On Tuesday evening, major cryptocurrencies experienced a notable surge, marking the first significant rally since early April 2022. The boost in prices was influenced by decreasing interest rates and a growing expectation for the introduction of a spot Bitcoin exchange-traded fund (ETF) in the United States.
BTC Surges and Liquidations: Market Dynamics and Stock Reactions
Bitcoin (BTC) witnessed a significant surge today, starting below $42,000 and reaching a peak of $44,400 before settling around $43,800, reflecting a nearly 5% increase in the last 24 hours. Glassnode data indicates substantial liquidation in leveraged derivatives trading positions, particularly shorts betting on lower prices, totaling $162 million.
In the past 24 hours, a remarkable 79,368 traders faced liquidation, resulting in a total liquidation amount of $246.65 million. The most substantial single liquidation order occurred on OKX, with a BTC-USDT-SWAP value of $8.86 million. Concerning BTC, over $92 million worth of shorts were eliminated within a day. The global crypto market cap reached $1.60 trillion, marking a 3.56% increase in the last 24 hours.
In the broader financial landscape, stock markets experienced a rebound from session lows on Tuesday as the U.S. 10-year Treasury yield dropped below the significant 4.2% level. This move was prompted by data indicating a slowdown in the labor market. While the Dow Jones Industrial Average and the S&P 500 saw marginal declines, the tech-heavy Nasdaq Composite outperformed with a gain of 0.31%. The Dow decreased by 0.22%, closing at 36,124.56, and the S&P 500 saw a minor retreat of 0.06%, settling at 4,567.18.
Crypto Analyst Highlights Ethereum and Bitcoin Dynamics
Cryptocurrency analyst Michael Van de Poppe highlights Ethereum’s strong potential, envisioning a breakout above $2,150. He suggests that a retest would be an opportune entry point, anticipating further gains to $3,100 in the coming months.
#Ethereum is showing strength, breakout above $2,150.
A retest would be a golden entry, but further we'll be looking at $3,100 for the coming months. pic.twitter.com/evlZyiWmsF
— Michaël van de Poppe (@CryptoMichNL) December 5, 2023
Eli Taranto, Executive Director at EQI Bank, notes Bitcoin’s resilience amid global market shifts. As the European market rally stalls and China’s credit rating sees a cut by Moody’s, BTC holds previous gains. Taranto observes optimistic DeFi numbers, signaling a comeback as the market rebounds to $50 billion. However, he warns of increased profit-taking risk, especially around upcoming US labor market data, potentially impacting overall BTC prices. Taranto points out Coinbase’s impressive 300% surge in 2023, suggesting investor confidence in compliance-focused players.
Crypto analyst Benjamin Cowen predicts a potential Bitcoin dip if it reaches $48,000, using Fibonacci retracement levels for support and resistance identification. He references historical trends, emphasizing key levels around $42,000 and $48,000 based on the retracement tool.
LunarCrush data reveals a substantial increase in Bitcoin’s social dominance, surpassing 35% in the last 24 hours. Ethereum also shows a rise of 33% in social dominance, as measured by the “share of voice” across various social media platforms.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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