Crypto Market Edges Closer to Breakout as Total Capitalization Hits $2.19 Trillion
The cryptocurrency market has regained momentum and is edging closer to a breakout. The total market capitalization has returned to $2.19 trillion, within its previous trading range after a brief flight from risk assets on Thursday evening. However, leading cryptocurrencies have mostly fluctuated between -2.5% and +1.5% over the past 24 hours, with Cardano and Algorand posting notable gains of 7% and 3.2%, respectively.
Bitcoin continues to struggle to break above $65,000, but its lower boundary has narrowed from $58,000 to $66,000 in June to just within $62,000 and $66,000 over the last 30 days. The consolidation range is now at a critical juncture, with a breakout above $66,000 potentially attracting more traders and convincing them that the bear market is over.
A report by CryptoQuant suggests that large holders of Bitcoin, Ethereum, and XRP are building up their positions while prices remain close to or below the realised price. This reduces selling pressure and resembles the final phase of a bear market. On the other hand, Tesseract Group warns that the current situation in Bitcoin should not be viewed as a 'lull', given weak trading volumes and limited market depth.