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Bitcoin Adds $20 Billion to the Crypto Economy as Traders Defend the $77K Support Level
Bitcoin traded in a volatile but narrow range, repeatedly attempting to establish itself above the $77,000 mark. After an overnight surge from $76,700 to $77,200, it reached a daily high of $77,604 before stabilising around $77,500.
Key Takeaways
- Bitcoin hovered around the $77,500 level after a sharp midnight breakout from $76,700.
- The total cryptocurrency market capitalisation increased by more than $20 billion, reaching $2.66 trillion.
- Traders are watching whether Bitcoin will test the next resistance level at $77,600 following the drop in WTI crude oil prices to $97 per barrel.
Bitcoin Volatility Eases Near the $77K Resistance Level
Bitcoin experienced another exhausting period of range-bound consolidation, repeatedly failing to secure a decisive breakout above the psychological $77,000 threshold. Even after breaking through resistance, it struggled to maintain upward momentum.
Market data showed that Bitcoin spent most of the session below the $77,000 mark, only testing that level shortly after midnight when a sudden surge in liquidity triggered a sharp $500 rally — lifting the price from just below $76,700 to $77,200 in less than an hour.
From there, the price gradually climbed to $77,555 before a sharp sell-off pushed it down to $76,900 by 10:15 a.m. Eastern Time. The same pattern repeated itself, driving Bitcoin to a daily high of $77,604 around 11:24 a.m., only for the cryptocurrency to plunge back to just above $77,000 an hour later.
At the time of writing, at 1:26 p.m. Eastern Time, Bitcoin was trading around $77,500 and appeared ready to retest the $77,600 threshold.
Crypto Market Capitalisation Rises by $20 Billion
Bitcoin’s price action resulted in a modest 0.5% gain, lifting its market capitalisation to approximately $1.55 trillion. This modest recovery also reduced its weekly losses from 4.8% to 2.5%.
The rebound helped push the total cryptocurrency market capitalisation up to $2.66 trillion — $20 billion higher than the $2.64 trillion recorded 24 hours earlier.
The modest crypto market recovery mirrored broader gains in European and US equity markets, which received a strong boost from falling oil prices.
West Texas Intermediate (WTI) crude oil, which traded just below $105 per barrel on Tuesday afternoon, dropped to $97 per barrel, while global benchmark Brent crude plunged nearly 6% to slightly below $105 per barrel.
Some reports attributed the decline to a direct call from Chinese President Xi Jinping for negotiations to resolve the conflict between the United States and Iran.
Bond Markets Stabilise
Meanwhile, easing pressure in the energy market helped stabilise bond markets following a brutal multi-day sell-off. In the United States, yields on 10-year Treasury bonds edged lower, easing immediate concerns that the Federal Reserve would be forced into a more hawkish rate-hiking stance later this year.
As expected, Bitcoin’s relatively stable price action led to the liquidation of both leveraged long and short positions totalling approximately $38 million, with short positions accounting for 61% ($21.8 million) of the total.
The largest single cryptocurrency liquidation amounted to $3.97 million.
Overall, the cryptocurrency market saw $184.5 million worth of leveraged positions liquidated, with liquidated short positions accounting for nearly $105 million of the total.
See also: "Bitcoin Climbs Towards $78K Amid Nvidia Results and Iran Negotiations"
