Crypto Market Corrects After Sunday Rally Analysts Eye Bitcoin Rebound
Major cryptocurrencies experienced a sharp decline on Monday, reversing gains from the previous day. Bitcoin dropped from the mid-$86,000s to the early $85,000s before partially recovering. Ethereum struggled to break past the $2,700 mark, while XRP and Dogecoin also saw notable declines. Cryptocurrency-related stocks like MicroStrategy (NASDAQ:MSTR) and Bitmine Immersion Technologies (NYSE:BMNR) closed down 4.42% and 2.02%, respectively. The market saw over $190 million in liquidations, with $114 million in long positions erased, according to Coinglass data.
The global cryptocurrency market capitalization stood at $3.02 trillion, up 0.10% over the last 24 hours, while trading volume surged 66%. Stocks began the week strongly, with the Dow Jones, S&P 500, and Nasdaq Composite all posting gains. The Purchasing Managers’ Index declined slightly to 54.9% in September, but remained in line with market estimates. Meanwhile, the odds of the Federal Reserve keeping interest rates unchanged stood at 76.8%.
Despite the market correction, some analysts remain optimistic about Bitcoin’s prospects. Michaël van de Poppe, a widely followed cryptocurrency analyst, suggested that Bitcoin is favoring a bullish scenario. He noted that flipping the $85,000 level could trigger upward momentum, potentially targeting $90,000 next. On-chain analytics firm CryptoQuant highlighted that Bitcoin’s Puell Multiple has hit an 11-month high, indicating a possible reversal and further upward movement.