Bitcoin, Warning of Retesting $75,000...Dogecoin Marches Alone

▲ Bitcoin (BTC), cryptocurrency decline/AI generated image

Ahead of the U.S. Senate's review of the U.S. cryptocurrency market structure bill, Bitcoin (BTC), Ethereum (ETH), and XRP all fell together, while only Dogecoin (DOGE) rose, reigniting short-term instability in the cryptocurrency market.

Benzinga reported on May 13 (local time) that major cryptocurrencies showed weakness ahead of the U.S. Senate Banking Committee's review of the U.S. cryptocurrency market structure bill. Bitcoin fell below $79,000 early in the session before recovering some of its losses, and Ethereum dropped to $2,233 during the day. In contrast, Dogecoin rose by about 3%, showing a movement different from the bearish trend of major cryptocurrencies.

Overall market pressure also increased. According to Coinglass data, over $370 million in positions were liquidated in the last 24 hours, with losses again concentrated on long position traders. Bitcoin's open interest slightly increased by 0.28% during the same period, and the sentiment of derivatives traders, including retail investors and whales on Binance, remained neutral. The Crypto Fear & Greed Index showed that fear dominated the market sentiment.

The total cryptocurrency market capitalization fell by 1.34% to $2.65 trillion in the last 24 hours. Among major cryptocurrencies, Bitcoin fell by 1.77%, Ethereum by 1.16%, XRP by 1.00%, and Solana (SOL) by 4.11%. Dogecoin rose by 2.91%, showing a differentiated trend among the top cryptocurrencies.

In the stock market, major indices rebounded to near all-time highs. The S&P closed up 0.58% at 7,444.25, and the technology-heavy Nasdaq Composite Index finished trading up 1.2% at 26,402.34. The Dow Jones Industrial Average closed down 67.36 points, or 0.14%, at 49,693.20. Cryptocurrency-related stocks showed weakness, with Strategy Inc. and Bitmine Immersion Technologies Inc. falling by 3.46% and 2.26% respectively.

Market analyst Ali Martinez mentioned the possibility that Bitcoin met resistance at $82,500 and suggested a potential retest of $75,000, where the 50-day simple moving average is located. CryptoQuant analyzed that the unrealized profit margin of Bitcoin traders has risen to a level rarely seen in about a year, increasing the risk of selling pressure. CryptoQuant explained that the profit margin reached a similar level in March 2022 when Bitcoin was testing its 200-day moving average, after which a downtrend resumed.

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