(Kitco News) – The crypto market experienced its second day of down-trending prices as cryptocurrency exchanges continue to be a weak point, with the courts ruling on Wednesday that the Securities and Exchange Commission’s (SEC) lawsuit against the staking service offered by Coinbase can to proceed.
Stocks, meanwhile, rebounded after several days of losses as investors await Friday’s reading of the Personal Consumption Expenditures (PCE) price index to get a better sense of what the Federal Reserve may do next regarding interest rates. The CME FedWatch tool currently gives a 63% chance that the Fed will lower rates in June.
At the closing bell, the S&P, Dow, and Nasdaq all finished in the green up 0.86%, 1.22%, and 0.51%, respectively.
Data provided by TradingView shows that Bitcoin’s (BTC) price was climbing higher before the court ruling on Coinbase was announced, topping out near $71,815 before the negative judgment led to a sell-off that saw the top crypto’s price hit a low of $68,415.
BTC/USD Chart by TradingView
At the time of writing, Bitcoin trades at $68,990, a decrease of 1.1% on the 24-hour chart.
Prior to Wednesday’s pullback, Jamie Coutts, crypto analyst for Real Vision, said “Bitcoin seems ready to teleport higher as it breaks the flag pattern from the head fake at the ATHs. Blue sky (no historical overhead resistance) is an accelerant for bull markets.”
“The pullback has allowed funding rates to recede back to something more 'normal' (20% ann) and the RSI backed off from overbought (RSIs are regularly overbought in strong uptrends),” Coutts noted.
“Onchain, it's evident that long-term holders are distributing at the most aggressive pace since Nov-20,” he added. “The extent of ETF demand to absorb this supply will have a large bearing on the shape and duration of this bull market.”
While Wednesday’s price action resulted in Bitcoin falling to the lower end of its current trading range, bulls haven’t relinquished control of support at $68,000 yet, and if they can manage to break above resistance at $72,000, Cubic Analytics founder Caleb Franzen said $83,000 could be the next stop.
I don't care who you are or what your timeframe is, pay attention to how #Bitcoin behaves here (1hr candles) and if it can secure a breakout over this mini resistance range.
Reiterate my target of $83k. pic.twitter.com/2pffoLGBji— Caleb Franzen (@CalebFranzen) March 27, 2024
And according to MN Trading Founder Michaël van de Poppe, as long as it holds above $67,000, there’s a good chance that Bitcoin could hit a new all-time high before the halving, which is anticipated to occur in 24 days.
Technically, my point of interest in holding on to #Bitcoin lies at $67K.
If that holds, we'll likely see another ATH test pre-halving. pic.twitter.com/i9bJuVqqso— Michaël van de Poppe (@CryptoMichNL) March 27, 2024
Altcoins bleed as Bitcoin struggles
The majority of tokens in the top 200 recorded losses on Wednesday as crypto investors continue to react to attacks on crypto exchanges by selling tokens and transferring assets into cold storage.
Daily cryptocurrency market performance. Source: Coin360
Despite the downturn, eight tokens managed to post double-digit gains, led by ether.fi (ETHFI), Mantle (MANTLE), and Threshold (T), which recorded increases of 39.6%, 32.7%, and 18.9%, respectively. MANTRA (OM), NEAR Protocol (NEAR), and Core (CORE) saw the biggest losses, declining by 9.2%, 9.1%, and 7.5%, respectively.
The overall cryptocurrency market cap now stands at $2.6 trillion, and Bitcoin’s dominance rate is 52.1%.
