Bitcoin Warns of Retesting $75,000...Dogecoin Rallies Solo

▲ Bitcoin (BTC), Cryptocurrency Decline/AI Generated Image

As the U.S. Senate prepares to review the U.S. crypto market structure bill, Bitcoin (BTC), Ethereum (ETH), and XRP all fell, while Dogecoin (DOGE) alone rose, once again increasing 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. crypto market structure bill. Bitcoin fell below $79,000 in early trading before recovering some of its losses, while Ethereum dropped to $2,233 during the session. In contrast, Dogecoin rose by about 3%, showing a different movement from the bearish trend of major cryptocurrencies.

Overall market pressure also increased. According to Coinglass data, over $370 million worth of positions were liquidated in the past 24 hours, with losses once again concentrated among 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 indicated that fear dominated the market sentiment.

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

In the stock market, major indices rebounded to all-time highs. The S&P closed up 0.58% at 7,444.25, and the tech-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 of Bitcoin facing resistance at $82,500, suggesting a potential retest of $75,000, where the 50-day simple moving average is located. CryptoQuant analyzed that Bitcoin traders' unrealized profit margins have risen to a level rarely seen in about a year, increasing the risk of selling pressure. CryptoQuant explained that profit margins reached similar levels in March 2022 when Bitcoin was testing its 200-day moving average, after which a downtrend resumed.

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