The bitcoin price has declined on Tuesday after failing to sustain levels above $79,000 for the third time in eight sessions, establishing this level as a defining range. On Tuesday morning, bitcoin traded at $76,923, representing a 2.4% drop over 24 hours, following a climb to $79,399 on Monday.
Other major cryptocurrencies also experienced declines, with ether falling 3.7% to $2,290, XRP slipping 3.2% to $1.39, solana dropping 3.9% to $84.10, and BNB declining 1.8% to $625. The top 10 tokens were all in the red over the past 24 hours, with the exception of TRON and DOGE.
The rise in Brent crude oil to above $109 a barrel, marking its seventh consecutive day of gains, was attributed to the failure of Iran's proposal to reopen the Strait of Hormuz. The MSCI Asia Pacific Index remained relatively stable, supported by the Bank of Japan's decision to maintain its policy unchanged. Two contrasting views are emerging among market analysts regarding the direction of bitcoin. Mike Novogratz of Galaxy Digital suggests that the combination of retail demand, institutional capital, and limited supply creates a foundation for further upside, citing data showing whales have accumulated over 40,000 BTC in the past two weeks.
In contrast, CryptoQuant's Ki Young-Ju argues that the push above $79,000 was primarily driven by a short squeeze in the derivatives market rather than sustained spot demand, leaving the market vulnerable to a reversal. Funding rates on perpetual futures remain negative, indicating that shorts are still paying longs to hold positions.
The test for the market will be whether the next attempt to reach $79,000 brings fresh spot bids or if it relies on short covering. Corporate accumulation of bitcoin continues, with Strategy buying $3.9 billion in April, the largest monthly accumulation in a year.
Japanese company Metaplanet announced a $50 million bond issuance to finance new bitcoin purchases. The upcoming Federal Reserve policy decision and megacap tech earnings may serve as catalysts to push bitcoin past $80,000.