Bitcoin, Ethereum, Dogecoin Slide As Stocks Rally: Analyst Spots 'Good Sign' For ETH's Mid-Term And Long-Term Price Outlooks

Leading cryptocurrencies dipped on Tuesday, even as the stock market lifted to record highs.

What Happened: Bitcoin plummeted to a two-week low of $93,388.83, breaking out of its rangebound price pattern.

Ethereum fell to an intraday low of $2,606.90 before recouping losses later in the evening.

Bitcoin’s dominance rose above 60%, while Ethereum accounted for a 10.3% share of the cryptocurrency market.

Cryptocurrency liquidations soared to $344.95 million in the last 24 hours, with over $278 million in upside bets getting erased.

Bitcoin’s Open interest rose by 1.12%. A rise in Open Interest, coinciding with a price decline, indicated the opening of new short positions.

That said, over $800 million in short positions will be liquidated if Bitcoin reclaims $100,000.

Market sentiment flipped into the “Fear” zone, according to the Crypto Fear & Greed Index, potentially leading to an increase in short positioning.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.14 trillion, contracting by 0.90% in the last 24 hours.

Stocks rallied sharply on the first trading day of the week. The S&P 500 lifted 0.24% to close at a record high of 6,129.58. The Dow Jones Industrial Average was comparatively muted, adding 10.26 points, or 0.02%, to end at 44,556.34. The tech-heavy Nasdaq Composite gained 0.07% to close at 20,041.26.

The Federal Reserve will release last month’s meeting minutes on Wednesday, helping investors further understand the central bank’s position on interest rates.

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Analyst Notes: Leading on-chain analytics firm Santiment noted a sharp decline in the Ethereum network’s average fees, describing it as a “good sign” for mid-term and long-term price outlooks.

“Just as extremely high fees can sometimes push traders away or cause short-term corrections, extremely low fees (like we’re seeing now) will often incentivize users back and allowing the network’s utility to rise to a prosperous rate,” the analyst stated.

Well-known cryptocurrency expert and trader Ali Martinez highlighted levels of interest on Bitcoin’s price chart. 

“Bitcoin faces a supply wall of 1.88 million BTC at $97,000, while support at $94,500 is backed by just 695,000 BTC. This imbalance could play a key role in the next move,” Martinez predicted.