The wider cryptocurrency marketplace entered a menstruum of consolidation on Tuesday following Bitcoin'south (BTC) brief fasten in a higher place $40,000 the mean solar day earlier, which helped ignite a rally across the market place and brought a renewed sense of optimism to the market.

Data from Cointelegraph Markets Pro and TradingView shows that a mid-24-hour interval attempt by bulls to lift the cost of BTC dorsum above the $40,000 level was rejected, resulting in a cost pullback to $37,500.

BTC/USDT 4-hour chart. Source: TradingView

While Tuesday's price pullback may suggest that Monday'due south rally was simply a short squeeze, others point to the ascent Grayscale Bitcoin Trust (GBTC) premium, which is now at its highest levels in months at -five.88%, suggesting that institutions are once once again betting on more BTC price upside.

Bitcoin bulls battle to reestablish uptrend

Rumors that Amazon will begin accepting cryptocurrency payments in 2022 helped ignite the market-broad rally seen on Mon, though information technology was officially denied by the company afterward.

Still, as pointed out by pseudonymous independent marketplace analyst Rekt Capital, Bitcoin'southward cost chart shows a fractal pattern that is like to the price-performance in October 2022 — just earlier BTC's cost began its run to a new all-fourth dimension high.

If a similar pattern plays out in the current market place, Bitcoin'due south toll volition see a continuation of the uptrend that the Amazon rumors initiated.

Non all of this suggests a continuation of the upwardly momentum, notwithstanding, as was pointed out past Jarvis Labs annotator and co-founder Ben Lilly, who has been monitoring on-chain data to gain deeper insight into the most recent pump, particularly with Ethereum's London difficult fork slated for Aug. four.

Lilly said:

"Onchain activeness and demand hasn't showed up. Pair this up with Amazon news as faux and shorts getting rekt, I wouldn't be surprised to run across low $30ks be4 1559."

An example of bearish bias, nevertheless, was provided by the pseudonymous Twitter user Comport Wolf, who saw Monday's developments as nothing more a short squeeze among a wider conduct market place.

"19K is notwithstanding my target for the stop of the bear market," he wrote. "Dead Cat Bounce to 46K (Short Clasp). TA invalidates if we pump to 50K and observe back up >>Above

Related : Sen. Warren urges Treasury Secretary Yellen to gainsay rising crypto threats

Altcoins requite back gains

A big percent of the gains seen in the altcoin market on Monday was given back on Tuesday as the euphoria from the Amazon rumors subsided.

Daily cryptocurrency market performance. Source: Coin360

Dogecoin (DOGE) and Solana (SOL) were the two hardest-hit tokens in the top 20, seeing losses of 10% and 10.eight%, respectively, while Mon's top performers Strike (STRK) and Venus (XVS) both dropped by 16%.

A pair of 30% gains from Axie Infinity (AXS) and MyNeighborAlice (ALICE) marked the best performances of the 24-hour interval, while the blockchain-based identity management solution Civic (CVC) saw its price increment by 20%.

The overall cryptocurrency marketplace capitalization at present stands at $1.488 trillion, and Bitcoin'southward dominance charge per unit is 47.eight%.

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