Bitcoin Takes a Breather as Global Market Capitalization Contraction Hits 1.29%

Cryptocurrency markets took a U-turn on Tuesday as investors locked in profits from recent gains. The global market capitalization contracted by 1.29% over the past 24 hours, with more than $620 million in cryptocurrency positions liquidated.

Bitcoin fell back to around $80,000 after reaching that key milestone, while Ethereum dropped to the mid-$2,400 range. XRP and Dogecoin also gave back a sizeable chunk of their recent gains.

Crypto-related stocks also declined, with Strategy Inc. (MSTR) and Bitmine Immersion Technologies Inc. (BMNR) closing up 3.42% and 2.82%, respectively. The 'greed' sentiment continued to dominate the market, according to the Crypto Fear & Greed Index.

Michaël van de Poppe, a popular cryptocurrency analyst and trader, outlined two possible scenarios for Bitcoin. In one scenario, Bitcoin would face resistance at $82,700 before several months of consolidation. If BTC doesn't encounter resistance, Van De Poppe anticipates a breakout enabling a $76,000-$90,000 trading range.