Bearish sentiment prevailed during Wednesday’s session due to lack of support from top coins and the absence of fresh cues from the global financial market. The tech-heavy Nasdaq, which the crypto market follows closely, ended the day with a modest gain of 0.41%. The total crypto market cap is hovering close to the psychologically important $1 trillion level.
Meanwhile, investors remained cautious ahead of the release of second-quarter US GDP data and Fed Chair Powell’s Friday speech, which is expected to provide clarity about the pace of interest rate hikes and global liquidity position.
Looking ahead, the market is expected to remain choppy for the rest of the week. The Fear & Greed Index, a gauge of market sentiment, is steady at 25/100, signaling extreme fear in the minds of investors. According to liquidation data from Coinglass.com, total liquidation over the 24 hours fell by close to 40% to $83 million. In short, it’s a wait-and-watch kind of market.
Bitcoin was mostly sideways during Wednesday’s session, struggling to break above the $21,500 level, but is holding on to the $21,000 level successfully, which is a positive for the market. The world’s largest cryptocurrency by market cap needs a strong buying session to support its return to the $22,000 level and reverse the bearish sentiment. Down below, $20,740 would offer strong support and if it breaks below, we may see a sub-$20K level.
After initial weakness at the start of the week, ETH bounced back and reclaimed the $1,600 level successfully. It is facing resistance at the $1,675 level, but could break above when market sentiment improves slightly. The $1,620 level is the immediate support and if it breaks below, ETH could drop below the $1,600 level, which would be negative.
Keep a close eye on the broader market moves, including the Nasdaq, to get a sense of the possible direction of the crypto market and other top coins.
Top 5 gainers in the last 24 hours
- iExec RLC (RLC): 20.86%
- Ankr (ANKR): 12.75%
- Cosmos (ATOM): 10.14%
- Ethereum Classic (ETC): 10.02%
- Livepeer (LPT): 8.27%