Crypto Market Pulls Back After Weeks of Gains
The crypto market experienced a pullback on Tuesday, with the total market capitalization slipping to $3.2 trillion as Bitcoin fell roughly 2.3% to around $92,000. This decline occurred despite equities hitting fresh record highs and futures positioning continuing to build across digital assets. According to recent data, some of the top gainers in the crypto market include Dogwifhat, Sui, IOTA, Lighter, Bittensor, and XRP.
Notably, Dogwifhat (WIF), Sui (SUI), IOTA (IOTA), and XRP (XRP) jumped by over 14% in the last 24 hours. A closer look at their 7-day trajectory reveals significant gains: Dogwifhat (WIF) rose by 50% to $0.423, IOTA (IOTA) increased by 30% to $0.1093, Sui (SUI) also gained 30% to $1.85, and XRP (XRP) climbed 18.8% to $2.23.
Market Trends and Analysis
The rally in the crypto market is happening as futures open interest is accelerating, with open interest soaring to over $145 billion, the highest point since November 10. Bitcoin’s (BTC) open interest rose to over $61.8 billion. Additionally, short liquidations continue to accelerate, with data showing a 60% increase to over $434 billion. Bitcoin’s short liquidations are worth over $186.65 million, while Ethereum, XRP, and Solana positions are worth over $84 million, $32 million, and $19 million, respectively.
Investors are also piling into crypto-related exchange-traded funds (ETFs), with spot Bitcoin ETFs having over $697 million in inflows on Monday, up from $471 million on Friday. Spot Ethereum ETF inflows added over $168 million, while XRP and Solana added $46 million and $16.2 million, respectively. Technical analysis also explains the crypto market rally, with the daily chart showing that the Bitcoin price moved from a low of $80,494 in November to the current $94,100.
Technical Indicators and Future Outlook
A closer look at the technical indicators reveals that Bitcoin has moved above the 61.8% Fibonacci Retracement level and the 50-day moving average. The Relative Strength Index and the Stochastic oscillator have continued rising, indicating a potential spike in Bitcoin’s price if it moves above the $94,492 resistance level. Such a move could boost crypto prices over time. For more information and the latest updates on the crypto market, visit the original source: https://crypto.news/crypto-market-down-jan-6-risk-on-sentiment-spreads/
Bitcoin price chart | Source: crypto.news
