Altcoins interest dampens despite Bitcoin’ s resolve

There are no clear catalysts in explaining the recent crash in the crypto market amid Bitcoin’s resolve to stay above $65K, sending digital assets into a sea of red. The cryptocurrency market valuation dipped by 3.5% to $2.36 trillion. Meme coins like Shiba lost more than a tenth of its value making it the most negatively impacted cryptocurrency among the top 20 by market capitalization.

Market indicators show a recent uptick in liquidity indicating that Bitcoin may find strong support at $64.5K. According to Coinglass statistics, a decline below this level resulted in liquidating leveraged long bets valued at roughly $464 million. This suggests that there had been a sell-side liquidity sweep, which eliminated the majority of the highly leveraged long holdings and initiated several pending buy orders, enabling them to enter a sizable position with little slippage. This narrative may aid Bitcoin in forming a bottom.

Data from Farside Investors shows that outflows from the spot Bitcoin ETFs have occurred on five of the last six trading days. The quantity of mentions of altseason on cryptocurrency social media is displayed by Santiment’s Social Volume data for the social topic “altseason.” As traders grow avaricious and their interest in cryptocurrencies increases, a spike in this indicator during rallies frequently indicates local tops.

The social volume highlighted some decline following its most recent peak in March. This drop suggests that the fear of missing out (FOMO) has subsided significantly, and the fear of crowds is what has caused the price of Bitcoin to drop to its lowest point locally.

If Bitcoin breaks through the $71.1K resistance level and turns it into a support floor, this negative prognosis might be completely invalidated. In response, Bitcoin might challenge the record high of $73.8K and establish a new one at $80K

The ETFs are anticipated to start trading on or before July 2 after the SEC authorized spot ETH ETF issuers’ 19b-4s on May 23 and provided feedback on their S-1s last week.
Even while the SEC’s decision to provide issuers comments on their spot ETH ETF S-1 registration statements had a favorable effect, Ethereum failed to see any significant price gain on Tuesday and is now trading at $3,449 as of this writing. After plunging to about $3,361, ETH’s price saw a breakout and returned to the $3,500 region. As of writing, prices have, however, reversed.