The cryptocurrency market recently experienced a significant downturn, with Bitcoin dipping below its critical support level of $65,000 on TuesdayThis bearish trend wasn't isolated to Bitcoin; many altcoins faced substantial losses, with some plummeting by double digits within just 24 hours.

According to data from various sources, Bitcoin opened the day at $66,665 but soon embarked on a downward trajectory, reaching a low of $64,300 at one pointIt bounced back near the $64,000 level after midday, and at the time of writing, the trading price stood at $65,056, reflecting a 2.36% decrease over the past dayIn the broader altcoin landscape, a staggering 194 of the top 200 cryptocurrencies by market capitalization recorded declines, highlighting the extent of market sell-offs.

Among the very few to show gains were Convex Finance (CVX) and aelf (ELF), which increased by 14.6% and 14.1%, respectively

Additionally, the FTX Token rose by 7%. However, the majority of tokens fared poorly, with 80 of the top 200 experiencing notable declinesConflux (CFX), Core (CORE), and Cat in a Dog's World (MEW) faced the largest reductions, with losses of 19.7%, 19.4%, and 19.2%, respectively.

Moreover, leverage trading played a significant role, leading to considerable liquidations in the marketData from Coinglass highlighted that approximately $372 million in crypto long positions were liquidated over the last 24 hours, alongside a lesser but still noteworthy $61.8 million in short liquidationsThese figures indicate that the leveraged trading environment had intensified volatility, leading to forced closures of many investor positions due to falling prices.

The total cryptocurrency market capitalization currently stands at approximately $2.32 trillion, with Bitcoin maintaining a market dominance of 54.5%, demonstrating its continued significance despite the recent market turmoil.

Turning to the stock market, noteworthy shifts occurred, particularly with Nvidia surpassing Microsoft to become the world’s highest-valued publicly traded company

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At the closing bell, the S&P index rose by 0.25%, and the Dow Jones increased by 0.15%, while the Nasdaq remained largely unchangedAnalysts suggest that the ongoing profit growth among tech companies, coupled with economic expansion, is sustaining stock prices even in the absence of anticipated interest rate cuts.

An analysis by Secure Digital Markets pointed out a clear sign of spot premiums in the market, suggesting a reduction in speculative trading activity among participantsThe Bitcoin order book earlier indicated concentrated buying around the $65,000 mark, which has now shifted down towards the $64,000 regionWith Bitcoin still trading below the 50-day moving average, this could exert pressure on medium-term trends.

For investors concerned about holding losses, market analyst CrediBULL Crypto urged caution and patience on social media, remarking, "The return of strong spot premiums and a transition to negative funding rates for the first time in months shows promise

Bitcoin's support area above $62,000-$63,000 appears strongClearly, Bitcoin is forming a bottom above $60,000; it just requires a bit more patience."

To gauge market sentiment, investors can analyze the long-to-short ratio among top tradersBy evaluating positions in perpetual contracts and quarterly futures, one can infer whether traders are leaning towards bullish or bearish stancesAccording to Coinglass, the long-to-short ratio for Binance whale traders surged from 1.32 on June 13 to 1.52, indicating robust demand for leveraged long positions, even as Bitcoin struggles to maintain the $68,000 support levelSimilarly, with OKX’s ratio climbing from 1.65 to 1.78, it reflects that whales and market makers have increased their net long positions following Bitcoin's drop below $67,000.

Signs of hope remain scattered throughout the marketA report from CryptoQuant indicated that traders have yet to increase their Bitcoin holdings, while demand from whales appears weak

Furthermore, the liquidity of stablecoins continues to slow down, with growth rates now at their lowest since November 2023, signifying a scarcity of bullish momentum.

Max, the founder and CEO of Because Bitcoin, emphasized that current market patterns mirror those seen in previous cyclesHe stated on Twitter, "Bitcoin and altcoins consistently repeat the patterns observed in prior cycles, with the upper curve representing BTC and the lower showing OTHERS.D (other tokens)." He highlighted that OTHERS.D serves as a measure of altcoin performance, with increases suggesting altcoins are superior to Bitcoin, while declines indicate the contrary.

Max further elucidated, "As illustrated in the red shadow region—when Bitcoin surged towards its previous cycle all-time high (ATH)—we typically notice a dip in altcoin performanceIn the previous two cycles, OTHERS.D significantly dropped during this phase, just as we're witnessing now