Alex Kuptsikevich, chief market analyst, FxPro: The crypto market capitalization fell by 1.1%, cooling off after an impressive surge in the first half of Monday. The 50-day moving average near $3.62 trillion acted as technical resistance, and the market’s climb stalled at $3.6 trillion. Despite Monday’s impressive surge, the market may be forming a new, lower local maximum, continuing the downward trend that began just over a month ago. The market is clearly not ready to switch to a mode of frenzied optimism, continuing to take profits after growth impulses have been realised. The reduction in support from corporate buyers is having an impact.
Rachael Lucas, analyst at BTC Markets: The recent lift in crypto prices looks like a classic short-covering rally, layered with a dash of institutional FOMO. Bitcoin bounced off key support at the 50-week SMA around $103,000 after testing lows near $98,900 and is now eyeing resistance at $110,400. If it breaks above that, we could see a run toward $115,600 to $118,000.
On the downside, $103,000 remains a critical structural level. A break below that could open the door to $86,000, with deeper support at US$82,000 aligning with the 100-week SMA. Any slip below those zones could reignite selling pressure.
