Bitcoin (BTC) Recaptured $97,000, Reaching an Intraday High of $98,375.81

Leading cryptocurrencies advanced on Tuesday as Treasury Secretary Scott Bessent will meet Chinese officials for trade talks this weekend, while a Fed decision on interest rates is due.

What Happened: Bitcoin price rose above the $97,000 level again, reaching an intraday high of $97,625.81. The largest cryptocurrency by market capitalization was trading at $96,667.8 at press time, a 24-hour gain of 2.09%.

After days of trading in a limited range, Bitcoin showed signs of a potential breakout, with technical indicators such as the Relative Strength Index (RSI) on the 4-hour chart entering oversold territory.

The cryptocurrency market saw liquidation of over $326 million in the past 24 hours, with nearly equal amounts of longs and shorts being liquidated. This indicated significant price volatility and a potential shift in market sentiment.

Speculative interest in Bitcoin surged, with Open Interest in BTC futures on Deribit showing a 5% jump in the last 24 hours.

Meanwhile, derivatives traders were placing 53% of their bets on Bitcoin to rise further, according to the Long/Short Ratio from the derivatives exchange. This indicated that traders were anticipating continued upward pressure on the cryptocurrency.

The market sentiment remained in the "Greed" zone, with a score of 61 on the Crypto Fear and Greed Index. This suggested that there was more pressure from buyers than sellers, and the market was likely to see further gains in the coming days.

Crypto Fear and Greed Index

Top Gainers (24 Hours)

The global cryptocurrency market cap now stands at $3 trillion, showing a 2% increase in the past 24 hours.

Stocks closed the second straight session in the red on Tuesday. The Dow Jones Industrial Average fell 389.83 points, or 0.95%, to end at 40,829.00. The S&P 500 lost 0.77% to close at 5,606.91, while the tech-heavy Nasdaq Composite slid 0.74%, ending at 17,689.66.

The Fed's decision on interest rates is expected on Wednesday. Traders are pricing in a 97% chance that the current 4.25%-4.50% range for the fed funds rate will remain unchanged, according to CME Group's FedWatch tool.

Stock futures rose sharply in overnight trading on Tuesday after the administration confirmed that Bessent will meet Chinese officials for trade negotiations this weekend in Geneva.

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Analyst Notes: Blockchain analytics firm Santiment observed that Bitcoin's key stakeholders were "moving in the right direction" to justify a potential $100,000 price target for the cryptocurrency in the near future.

"Wallets with the highest correlation with crypto's overall market health (10-10K BTC wallets) have accumulated a combined 81,338 more BTC (+0.61% of their holdings) during these past 6 weeks of volatility," the firm added.

Cryptocurrency analyst Michaël van de Poppe noticed Bitcoin's "solid" chart and expected the apex cryptocurrency to go further north.

"I think we’ll continue the grind on Bitcoin upwards, the key factor here is whether Gold starts to correct after FOMC tomorrow, indicating that there’s the start of the business cycle," Van De Poppe stated.

Photo Courtesy: Yalcin Sonat On Shutterstock.com

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