Bitcoin (BTC) Edges Higher on Monday, Matching Gains Made in the Stock Market

Leading cryptocurrencies edged higher Monday, matching the gains made in the stock market.

Leading cryptocurrencies advanced on Monday, keeping pace with the gains made in the stock market.

What Happened: Bitcoin rose to an intraday high of $84,700 before retreating to the $83,000 zone as traders booked profits.

The apex cryptocurrency’s market dominance remained above 60% while that of Ethereum, the no.2 crypto, declined to 8.5% over 24 hours.

Institutional interest in spot exchange-traded funds has taken a hammering with the ongoing cryptocurrency meltdown. U.S.-listed Bitcoin ETFs have bled over $5.5 billion over the last five weeks.

Over $168 million was liquidated from the market over 24 hours, with short liquidations exceeding $100 million.

If Bitcoin manages to reclaim the $87,000 level, an additional $500 million in shorts would be liquidated.

Bitcoin’s Open Interest grew 1.32% over 24 hours, indicating an influx of new money into the derivatives market.

The Long/Short Ratio showed that the percentage of traders positioned short on Bitcoin surged to 55%, suggesting that traders were anticipating another dip.

Top Gainer (24 Hour)

Cryptocurrency Price 24H Change

Bitcoin $83,167 1.26%

The global cryptocurrency market cap now stands at $2.74 trillion, up 1.26%.

Stocks started the new trading week in the black. The Dow Jones Industrial Average surged 353.45 points, or 0.85%, to close at 41,841.63. The S&P 500 rose 0.65%, ending at 5,675.12, while the tech-heavy Nasdaq Composite gained 0.31% to close at 17,808.66.

Wall Street has been pressured by President Donald Trump's tariff announcements. The Dow and S&P 500 have shed 6.09% and 7.41%, respectively, over the last month.

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Analyst Notes: Popular cryptocurrency analytics firm CryptoQuant detected a steady deleveraging in Bitcoin's derivatives market, with about $10 billion in Open Interest being erased over the last two months.

"This can be considered a natural market reset, an essential phase for sustaining a bullish continuation," CryptoQuant said. "Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term."

The BTC market is undergoing deleveraging"This chart highlights such reset phases by identifying moments when the 90-day open interest change turns negative. Historically, each past onverging like this has provided good short-to medium-term opportunities." – @Darkfost_Coc

A widely followed cryptocurrency analyst known as "Elite Crypto" pointed out that for the sentiment to shift from playing the downside to a "potential reversal," Bitcoin needs to rise above $85,000 and $89,000.

"One good thing is that we are above the 80K support. We should flip the 85K and 89K levels pretty soon to change the current playbook. If you're wondering what I mean by 'playbook,' it's about shifting from playing the downside to a potential reversal, which could create an excellent opportunity for those who prefer to sell into strength." Elite Crypto said in a post.

According to the analyst, flipping these levels would be a "pivotal moment" as it would signal a change in the market trend.

"But if we continue to break down and fall below 80K, then we might see further downside. It's up to Bitcoin to decide which direction it wants to take."