Cryptocurrency markets are up on Tuesday

Cryptocurrency prices were trading higher on Tuesday, with a benign inflation reading in the U.S. continuing to fuel risk-on sentiment.

What Happened

Bitcoin (CRYPTO: BTC) price rose by 1.08% in the 24 hour period to $103,491.90 at the time of writing, according to Benzinga Pro. The world’s largest cryptocurrency was trading at a crucial level, with traders noting a key level of resistance.

“Next target for BTC's bullish continuation is $104,868 as identified by More Crypto Online. However, they add that if the local top was already set on May 12, this level could attract increased selling pressure.”

Stockmoney Lizards, a well-known Bitcoin trader, highlighted the strong bullish sentiment and a major sell wall.

"Let's see how this goes. But sentiment has clearly shifted. There's still a lot of sell orders above 104k.The moment we tap and break the old ATH, expect a massive short squeeze, catching bears off guard and potentially sparking a sharp upward move, especially with sidelined capital and momentum traders ready to jump in."

One trader, Byzantine General, pointed to the resilient bullish structure in Bitcoin and how a recent funding reset on major cryptocurrency exchanges cleared out excessive leverage.

“Usually when funding gets reset it means there was some serious build-up of leverage which got liquidated and broke the price down. But in this case, the rapid rebound shows strong underlying demand. As long as BTC continues to form higher lows and holds this key support, I don't see any clear reason to be bearish at this stage.”

Top Gainers (24 Hour)

The top seven cryptocurrency gainers over a 24-hour period, according to CoinMarketCap:

Trader Notes

Countless traders are keeping a close eye on Bitcoin to attempt to predict its next move.

More Crypto Online stated that Bitcoin is "implied to continue higher" to $104,868. But the trader added that if the "local high was already set on May 12, then this level will attract more sellers."

If Bitcoin is able to break above the key level of $104,000, then it could have a "pivotal impact on the market trend," according to Stockmoney Lizards.

"A clean breakout above the previous ATH could trigger a significant short squeeze, catching the remaining bears off guard and sparking a sharp upward move. Especially with the sidelined capital and momentum traders ready to capitalize on the strong bullish bias."

Related Link: Benzinga's Guide To The Metaverse

See More: Top Cryptocurrency News