Leading cryptocurrencies staged a strong relief rally on Wednesday, while the stock market also closed higher even as the Middle East war entered its fifth day.
Crypto Spike Wipes Millions In Shorts
Bitcoin rebounded to $74,000 for the first time in a month, with trading volume surging 52% over the last 24 hours.
Ethereum teased $2,200 fueled by similar buying pressure, while XRP and Solana also rallied.
Nearly $600 million was liquidated from the market in the last 24 hours, according to Coinglass, with $477 million in bearish shorts alone wiped out.
Open interest in Bitcoin futures exploded 11.49% over the last 24 hours. Interestingly, retail derivative traders on Binance bet on an imminent correction, as short positions exceeded longs.
Despite the sharp rebound, “Extreme Fear” sentiment prevailed, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.46 trillion, growing by as much as 5.40% over the last 24 hours.
Stock Market Also Rallies
Stocks rallied on Wednesday. The Dow Jones Industrial Average rose 238.14 points, or 0.49%, to end at 48,739.41.The S&P 500 lifted 0.78% to close at 6,869.50, while the tech-heavy Nasdaq Composite ended the session 1.29% higher at 22,807.48.
Crude oil prices rebounded from an earlier dip, with West Texas Intermediate futures climbing 2.60% to $76.60 per barrel as ongoing closure of the Strait of Hormuz raised alarms over potential supply disruptions.
Spot gold held steady, trading up 0.73% to $5,176 an ounce, while spot silver rose 1.49% to $84 an ounce.
Where Is Bitcoin Headed?
Widely followed cryptocurrency analyst and trader Ali Martinez said that $70,685 was a major resistance to Bitcoin, but that now reclaimed, the supply between $72,000 and $81,000 is “relatively light.”
“In other words, if momentum builds, there is open air in that range. The next major supply clusters appear around $83,307 and $84,569, which could act as the next significant resistance zones,” the analyst added.
Michaël van de Poppe, another popular cryptocurrency commentator, said that the market likely “overpriced” the Middle East war, positioning crypto as “undervalued” right now
“Great rotation and I would assume that we’ll see Altcoins take more momentum the moment Bitcoin stalls,” Van De Poppe projected.
Photo: Memory Stockphoto / Shutterstock
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