Bitcoin made a strong push towards $70,000 over the weekend but couldn’t sustain the momentum, dropping by 2.2% to just above $67,000. This decline was not limited to Bitcoin, as other major cryptocurrencies like ETH, TON, and ADA also experienced drops. Over $165 million in long positions were liquidated, pointing to significant leverage usage in the market.
Market analysts are predicting a rangebound week for cryptocurrencies such as BTC and ETH, as key resistance levels have not been surpassed yet. Despite Bitcoin’s dip of 2%, other cryptocurrencies like ETH, TON, and ADA fell by as much as 3%, while XRP and BNB Chain remained relatively stable. The overall market, as tracked by the CoinDesk 20 (CD20), lost 2.1% of its value.
In the midst of this market movement, the CAT token belonging to Simon’s Cat surged by 63% after being listed on the influential exchange Binance. The token is associated with the popular Simon’s Cat brand and is supported by their intellectual property. Banijay, the company holding the Simon’s Cat IP, generated $5.8 billion in revenue last year. CAT was launched in partnership with Floki and trading firm DWF Labs in August.
Trading volumes for CAT skyrocketed from nearly $80 million to over $422 million in the past 24 hours, highlighting the strong demand for this cat-themed token. Despite this surge, traders are cautioning about a potentially rangebound week ahead due to the lack of fundamental catalysts in the market.
Both BTC and ETH are approaching key resistance levels at $70,000 and $2800, respectively, but have not been able to surpass them yet. Singapore-based QCP Capital noted that a break above these levels could attract significant retail attention. However, with no major catalysts expected this week, the crypto market may continue to trade around these levels as it attempts to push higher.
Looking ahead, the market will be keeping an eye on PMI numbers set to be released on Thursday for any indication of the Federal Reserve’s rate cut path. Despite the uncertainty, traders remain optimistic about the potential for cryptocurrencies to break higher in the near future.
CoinDesk, the media outlet reporting on these developments, follows a strict set of editorial policies to ensure integrity, editorial independence, and freedom from bias in its publications. As part of the Bullish group, CoinDesk is involved in investing in digital asset businesses and digital assets. The Deputy Managing Editor for the Data & Tokens team, Shaurya, focuses on decentralized finance, markets, on-chain data, and governance across various blockchains.