Bitcoin, Ethereum, and Dogecoin Experience a Downturn as Investors Take Profits

Leading cryptocurrencies faced a decline on Tuesday as long-term investors decided to secure their profits.

Cryptocurrency	Gains +/-	Price (Recorded at 8:30 p.m. ET)
Bitcoin BTC/USD	-2.18%	$92,538.27
Ethereum ETH/USD	-3.32%	$3,335.13
Dogecoin DOGE/USD	-4.39%	$0.3886

What Happened: Bitcoin's value dropped to an intraday low of $90,770 before recovering slightly to $92,500 overnight. This downturn erased all the gains made over the previous week, stopping Bitcoin's ascent towards the $100,000 mark.

In the past 30 days, long-term Bitcoin holders sold off 728,000 coins, marking the biggest sell-off since April.

Within the last 24 hours, over $364 million worth of long positions have been liquidated from a total of $477 million. Bitcoin's Open Interest has also diminished by more than 5% during this period.

Despite this, the number of traders on Binance taking long positions in Bitcoin continues to far exceed those betting against the asset, according to the Long/Shorts Ratio indicator.

Furthermore, approximately $695 million in leveraged shorts are facing liquidation risks if Bitcoin rebounds to around $98,000.

Top Gainers in the Last 24 Hours

Cryptocurrency	Gains +/-	Price (Recorded at 8:30 p.m. ET)
Algorand (ALGO)	+13.71%	$0.3031
Fantom (FTM)	+7.27%	$1.08
Injective (INJ)	+7.09%	$29.61

The total market capitalization of the global cryptocurrency market stands at $3.18 trillion, having contracted by 2.29% in the last 24 hours.

On the broader market front, stocks reached new record highs on Tuesday. The Dow Jones Industrial Average increased by 123.74 points, or 0.28%, to close at 44,860.31. Meanwhile, the S&P 500 rose by 0.57% to finish at 6,021.63, also closing at a record high. The tech-focused Nasdaq Composite gained 0.63%, closing at 19,175.58.

Investors were evaluating the minutes from the recent Federal Reserve meeting, which showed a consensus that inflation is gradually decreasing.

In light of these developments, market participants have raised the probability of a 25 basis-point cut in next month's FOMC meeting to 57.7%, up from 52.3% the previous day, as per the CME FedWatch tool.

Market Outlook: In a report shared with analysts, Haider Rafique, Global Chief Marketing Officer at cryptocurrency exchange OKX, provided insights on Bitcoin's fluctuations around the $100,000 level. Rafique noted, "There’s definitely profit-taking at these levels. The average holding price is around $30,000, indicating a two to three-times upside for investors. Hence, there’s a considerable amount of sell pressure, yet we also see a corresponding buyback interest."

He further mentioned, "Many people have set $100,000 as a liquidation target. Institutions like MicroStrategy are accumulating significant amounts, naturally reducing available liquidity on exchanges and fostering upward momentum."

Widely respected cryptocurrency analyst Ali Martinez identified a "buy signal" from the TD Sequential indicator on Bitcoin's hourly chart. He noted a bullish divergence as the Relative Strength Index (RSI) formed a higher low, suggesting Bitcoin could rebound to the range of $95,000-$96,000.

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Bitcoin, Ethereum, Dogecoin