Leading cryptocurrencies dipped on Monday, mirroring declines in blue-chip equity indices.

What Happened: Bitcoin trended downward throughout the day, briefly dipping below $63,000 overnight. The King Crypto meandered around the lower boundary of $63,000 as of this writing.

Ethereum slipped below $2,700 midday, to later chop around the high $2,600s.

The total cryptocurrency liquidations hit $107.46 million in the last 24 hours, with long liquidations accounting for 83% of the total.

The total long volume for Bitcoin surged 60% in the last 24 hours, while short volume declined by 69%.

The Cryptocurrency Fear & Greed Index went from "Greed" to "Neutral," reflecting a marked change in sentiment following the pullback.

Top Gainers (24-Hours)

The global cryptocurrency market stood at $2.21 trillion, following a drop of 1.76% in the last 24 hours.

Stocks remained a mixed bag on Monday. The Dow Jones Industrial Average gained 65.44 points, or 0.16%, to close at a record high of 41,240.52. To the contrary, the S&P 500 slipped 0.32% to end at 5,616.84, while the tech-focused Nasdaq Composite dropped 0.85% to finish at 17,725.76.

The drag followed a 2.9% decline in shares of AI giant NVIDIA Corp. (NASDAQ:NVDA) before its hotly anticipated second-quarter earnings slated for Wednesday.

The market has entered optimism after Fed Chair Jerome Powell delivered a clear message about lowering interest rates next month.

Analyst Notes: Prominent cryptocurrency analyst Ali Martinez pointed out key levels to watch out for Bitcoin.

He stated that King Crypto could rise to $64,200 provided the support at $63,500 holds. On the contrary, the leading cryptocurrency risked falling to $62,800 if the support broke.

#Bitcoin seems to be trading within a parallel channel on the lower time frames. If the $63,500 support holds, $BTC could bounce back to $64,200 or even $64,800. However, if it breaks, a drop to $62,800 might be on the horizon! pic.twitter.com/4hROkZxQNp

— Ali (@ali_charts) August 26, 2024

On-chain analytics firm Santiment highlighted a disproportionately larger decline in Bitcoin's OI on exchanges when compared to that of Ethereum and Solana.

This indicated investors' shifting focus to altcoins owing to confidence in their upside potential. Additionally, it signaled risk diversification by large traders.

While Bitcoin has seen a mild -2.2% price drop in the past 24 hours, it was enough to cause a much larger -7.5% drop in total open interest on exchanges. For comparison, total open interest toward Ethereum and Solana have barely declined. A few takeaways:
Shifting Focus to... pic.twitter.com/vBltUQxcnX

— Santiment (@santimentfeed) August 27, 2024