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It was a sideways day of price action for the cryptocurrency market as token prices stabilized following Monday’s correction lower while investors anxiously await tomorrow’s Consumer Price Index (CPI) reading to get a better gauge on what may come next from the Federal Reserve in regard to interest rates. Stocks, meanwhile, faced pressure throughout the trading day as debt ceiling talks between President Biden and House Speaker Kevin McCarthy were the focus of attention across financial news channels. At the close of markets, the S&P, Dow and Nasdaq all finished in the red, down 0.46%, 0.17%, and 0.63%, respectively.
Data provided by TradingView shows that Bitcoin (BTC) spent the majority of the day trading within a few hundred dollars of the $27,700 support level, which has served as the battleground for bulls and bears over the past day and a half. This has been a consistent level of support since Bitcoin first climbed above $27,000 on March 17.
According to Kitco senior technical analyst Jim Wyckoff, the stabilizing price of BTC resulted in May Bitcoin futures trading firmer in the early hours on Tuesday.
A similar outlook was outlined by market analyst Michaël van de Poppe, who posted the following tweet highlighting the rejection at $27,800, which could potentially lead to a retest of the low $27,000 range – a level he sees as a good place to open a long position.
And for those worried about an extended correction or further declines, crypto analyst Moustache posted the following chart showing that Bitcoin continues to hold above the 21 Exponential Moving Average, which has historically been a bullish sign.
Altcoins show signs of recovery
The altcoin market started to show some signs of recovery on Tuesday as roughly three-quarters of the tokens in the top 200 were in the green for the day.
Bitcoin SV (BSV) was the top performer with a gain of 36.4% to trade at $40.34, followed by a 15.9% increase for MobileCoin (MOB) and a 12.44% gain for Merit Circle (MC).
The overall cryptocurrency market cap now stands at $1.14 trillion, and Bitcoin’s dominance rate is 47%.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.