Cryptocurrency price on July 12: Bitcoin falls below $57k; Solana, Polkadot tank up to 5%

However, earlier in the day, Bitcoin had reached $59,300 level after US inflation rates dropped to 3%, the lowest in four decades, signaling a possible end to the price spike.

"Bitcoin crossed the $59,000 mark immediately after June CPI data showed that inflation was negative in June. The news uplifted market sentiments and resulted in a mini rally across major digital assets," said Shivam Thakral, CEO of BuyUcoin.

Edul Patel, CEO of Mudrex, added, "Bitcoin briefly rose above $59,000 but couldn't maintain that level. It's facing difficulties breaking past the $60,000 resistance due to several factors: investors anticipating Fed interest rate cuts, the German government transferring BTC to exchanges, and the liquidation of leveraged long positions."

"The next resistance level is at $57,750, while support is at $56,000," Edul said.

Other popular cryptocurrencies, including , Solana, Dogecoin, Shiba Inu, Avalanche, Polkadot, and Chainlink, declined by up to 5%. On the other hand, , Toncoin, Cardano, and Tron surged by up to 3.5%.

The volume of all stablecoins is now $63.05 billion, which is 93.2% of the total crypto market 24-hour volume, according to CoinMarketCap.

In the last 24 hours, the market cap of Bitcoin, the world's largest cryptocurrency, fell to $1.1125 trillion. Bitcoin's dominance is currently 53.35%, according to CoinMarketCap. BTC volume in the last 24 hours rose 14.12% to $28.4 billion.

Tech view by Rajagopal Menon, Vice President of WazirX

Bitcoin is currently trading at $56,923. The price has dropped from the $59,500 resistance zone and is now below the $57,500 mark and the 100-hourly SMA. A key declining channel with resistance at $58,400 is forming. If BTC fails to maintain support above $56,500, it may continue to decline. Bears could gain momentum if the price falls below the $56,000 support level.

Technical indicators show the hourly MACD gaining momentum in the bearish zone, while the RSI for BTC/USD is below the 50 level. Major support levels are at $56,500 and $55,000, with significant resistance at $58,000 and $58,500. These indicators suggest potential downward pressure unless BTC can break through the resistance levels.

(Disclaimer: The views expressed by experts are their own and do not necessarily reflect those of The Economic Times)

Source: Forex-Markets-Economic Times