Bitcoin retreats but Ethereum poised for a bullish breakout

Market picture

Cryptocurrency market capitalisation fell 0.7% over the past 24 hours to $1.21 trillion, remaining near its peak since late April. The Cryptocurrency Fear and Greed Index retreated from 64 to 61 by early Wednesday afternoon, staying in "greed" territory.

Bitcoin has pulled back from the top of its recent trading range above $31.3K and is trading back near $30.8K. An upside breakout has not been confirmed, and the logical development is a pullback to the lower end of the range at $29.8K. Only a sustained exit outside the $29.8-31.3K corridor will signal the end of the consolidation and further movement towards the breakout.

Ethereum is also undergoing a local correction, but its stronger momentum is bullish for Bitcoin. ETHUSD broke through local resistance on Monday and completed a corrective pullback. The local retreat brought the price back to the former resistance in place since late April.

News background

Shares of the world's largest cryptocurrency operator Bitcoin Depot rose nearly 12% on its first day of trading on the NASDAQ. Cryptocurrency companies also saw significant gains. Shares in Coinbase jumped 12%, while MicroStrategy gained 10%.

According to Kaiko, cryptocurrency spot trading volumes fell sharply in the second quarter of 2023, hitting lows seen in late 2020. Binance saw the most significant decline, with trading volumes falling nearly 70%.

The alliance of South Korean cryptocurrency exchanges introduced a system to track market volatility. The alert system was designed to protect users by eliminating asymmetries and inconsistencies in incoming exchange information.

The Luminex team behind the Ordinaries platform unveiled the BRC-69 standard, making issuing NFT collections of recursive inscriptions in the Bitcoin blockchain easier and cheaper. According to the developers, BRC-69 reduces the cost of giving collections by more than 90%.

By the FxPro Analyst Team