Bitcoin Prices Are Holding Firm. Have Cryptos Really Hit Their Bottom?

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Crypto prices have collapsed in recent months, but prices recently have rallied.

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Bitcoin and other cryptocurrencies were trading mixed Tuesday, with prices wavering amid fragile investor sentiment following a selloff in the stock market on Monday.

The price of Bitcoin has slipped 1% over the past 24 hours to $21,900, having moved as high as $22,700 on Monday. Bitcoin continues to hold around the highest levels since a selloff in mid-June drove the largest crypto as low as $18,000 from $30,000, and is changing hands at less than one-third its all-time high near $69,000 from eight months ago.

“While Bitcoin saw positive momentum this week, it remains range-bound when you take a broader view, and is still struggling to cross the $22,000 resistance,” said Joe Diasquale, the CEO of crypto asset manager BitBull Capital.

After a recent crypto rally, market participants are mulling over whether digital assets have hit their bottom following a brutal period. 

Bitcoin just capped its worst quarter since 2011, a year in which it crossed $1 for the first time, and the total market capitalization of the crypto space has collapsed to $1 trillion from nearly $3 trillion in November 2021.

“For now, we remain interested in the bottom of this range when it comes to Bitcoin’s price, and are monitoring for accumulation during this range-bound movement,” DiPasquale said. “If Bitcoin does not break down from this range by the end of the month, especially post the [Federal Reserve’s monetary policy meeting ending July 27], we could see it as a strong sign of a potential long-term bottom.”

Beyond Bitcoin, Ether, the second-largest crypto, gained 3% to $1,530. The token underpinning the Ethereum blockchain network has rebounded more than 40% over the past week, outperforming Bitcoin. Altcoins, or smaller cryptos, were also upbeat, with Solana up 5% and Cardano 2% higher. Memecoins were more mixed, with Dogecoin around flat and Shiba Inu rising 3%.

Write to Jack Denton at jack.denton@dowjones.com