Bitcoin Attempted to Push the Market Off Its Low

Market Overview

The crypto market capitalisation has risen by 1.6% over the past 24 hours to $2.19T, continuing to consolidate within a fairly narrow range, having pulled back from the lower boundary of the channel it has been trading within for the past month and a half. Among the most actively traded coins, the top gainers were Tezos (+3.6%), Aave (+2.9%) and Bitcoin (+1.3%). The decline was more widespread and sharp, but concentrated among smaller coins such as Immutable (-6.4%), Filecoin (-5.7%) and Cosmos (-4.8%).

The sentiment index rose to 41. This is still in the ‘fear’ zone, but the indicator has not reached this level since mid-May. This upward trend prompts us once again to remind readers that only a sustained move above 50 can be regarded as a shift in the market cycle; for now, early optimists could easily fall into a trap.

On Monday, Bitcoin rose above $64.5K, recouping the losses of the past seven days as Strategy ceased selling the asset. However, as it approaches its recent highs, the leading cryptocurrency is once again facing increased selling pressure. BTCUSD remains extremely balanced, fuelling expectations that a breakout from this consolidation phase will trigger a sustained, strong trend in the breakout direction. In theory, there is a greater chance of a bull market recovery after nearly a year of decline. Still, history suggests we should remain open to the possibility of a final sell-off, which could prove very painful for the bulls.