Leading cryptocurrencies made further advances Tuesday as investors hope to recoup losses after "Black Monday."

What Happened: Bitcoin bounced as high as $56,988 during trading hours, and price action remained choppy overnight. The world's largest cryptocurrency traded 14.23% lower over the week.

Ethereum too remained volatile during the day, oscillating between $2,430 and $2,550. The Altcoin King was down 23% over the week.

In the past 24 hours, 54,989 traders were liquidated, with the total liquidations at $176.41 million. This comes after more than a billion dollars locked in speculative bets was wiped out on Monday.

Bitcoin's Open Interest marginally increased in the last 24 hours, signaling caution among investors. Ethereum recorded a 1.28% decline in OI.

The Longs/Shorts Ratio rose in the last 24 hours, indicating the closure of bearish bets in comparison to bullish ones.

The Cryptocurrency Fear & Greed Index improved from "Extreme Fear" to "Fear" due to the rebound.

Top Gainers (24-Hours)

The global cryptocurrency market stood at $1.97 trillion, declining 0.88% in the last 24 hours.

The stock market rebounded Tuesday after Monday's heavy sell-offs. The Dow Jones Industrial Average gained 294.39 points, or 0.76%, to close at 38,997.66. The S&P 500 lifted 1.04% to end at 5,240.03. The tech-heavy Nasdaq Composite added 1.03% to finish at 16,366.85.

The recovery came after a sharp rally in Japanese stocks. After recording its worst performance since the "Black Monday" crash of 1987, the Nikkei 225 bounced 10% Tuesday.

Analyst Notes: Legendary trader Peter Brandt likened Bitcoin's ongoing post-halving correction to the 2015-2017 cycle. Based on the trajectory of previous post-halving cycles, Brandt predicted that a new all-time high for King Crypto would take "many weeks" from now.

Price history of Bitcoin Halving Cycles $BTC
Key points:
1. Current post halving correction is similar to 2015-2017
2. Post halving corrections in past two cycles indicate that a new bull cycle high could be many weeks from now pic.twitter.com/2dMvoJcrNx

— Peter Brandt (@PeterLBrandt) August 6, 2024

Earlier in the day, Ali Martinez, known for his analyses and price predictions in the cryptocurrency space, forecast the possibility of another pullback.

"Though BTC might climb to $56,000-$57,000 at the wedge's upper boundary, watch for a potential breakdown that could pull BTC back to around $51,000," the analyst stated.

In the short term, #Bitcoin forms a rising wedge, a pattern often linked to downtrends. Though $BTC might climb to $56,000-$57,000 at the wedge's upper boundary, watch for a potential breakdown that could pull #BTC back to around $51,000! pic.twitter.com/qwBvwwHNnO

— Ali (@ali_charts) August 6, 2024