Markets
Cryptocurrency Price on July 12: Bitcoin Drops Below $57K; Solana and Polkadot Plunge Up to 5%
Cryptocurrency markets traded lower for a second straight day on Friday, dragged down by Bitcoin, Ethereum and Solana. The global cryptocurrency market cap fell 1.54% to around $2.11 trillion over the past 24 hours. At 12:42 p.m. ET, Bitcoin (BTC) was trading 2% lower at $56,919, while Ethereum was down 1.5% at $3,065.
However, earlier in the day, Bitcoin hit the $59,300 level after US inflation rates fell to a four-decade low of 3%, signaling a possible end to the price spike.
“Bitcoin crossed the $59,000 mark immediately after the June CPI data showed that inflation was negative in June. The news lifted market sentiments and resulted in a mini rally in major digital assets,” said Shivam Thakral, CEO of BuyUcoin.
Edul Patel, CEO of Mudrex, added: “Bitcoin briefly surged above $59,000 but failed to hold that level. It is struggling to break above the $60,000 resistance due to several factors: investors anticipating Fed interest rate cuts, the German government moving BTC to exchanges, and the liquidation of leveraged long positions.”
“The next resistance level is at $57,750, while support is at $56,000,” Edul said.
Other popular cryptocurrencies including BNBSolana, Dogecoin, Shiba Inu, Avalanche, Polkadot and Chainlink, fell by up to 5%. On the other hand, XRPToncoin, Cardano and Tron rose up to 3.5%.
The volume of all stablecoins now stands at $63.05 billion, which represents 93.2% of the total 24-hour cryptocurrency market volume, according to CoinMarketCap.
In the past 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, has dropped to $1.1125 trillion. Bitcoin’s dominance currently stands at 53.35%, according to CoinMarketCap. BTC volume in the past 24 hours has increased by 14.12% to $28.4 billion.
Technical Insight from Rajagopal Menon, Vice President, WazirX
Bitcoin is currently trading at $56,923. The price turned down from the $59,500 resistance zone and is now below the $57,500 mark and the 100 hourly SMA. A key declining channel is forming with resistance at $58,400. If BTC fails to hold the support above $56,500, it may continue to decline. The bears may gain strength if the price breaks below the $56,000 support.
Technical indicators show the hourly MACD gaining momentum in the bearish zone, while the RSI for BTC/USD is below the 50 level. Key support levels are at $56,500 and $55,000, with significant resistance at $58,000 and $58,500. These indicators suggest potential downward pressure unless BTC manages to break above the resistance levels.
(Disclaimer: The views expressed by the experts are their own and do not necessarily reflect those of The Economic Times)
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