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The global crypto market capitalization currently stands at $943 billion with a 9.7% decline in total crypto trade volumes from the previous day. Market sentiment turned sour last week with Ethereum (ETH) leading the slaughter. ETH registered the highest loss of 24% since Jan 2022 post Merge upgrade. Investors were cautiously pessimistic when news of initial block production by centralized entities like Coinbase and Lido surfaced in addition to the selling pressure by miners. Bitcoin (BTC) and several altcoins had a quick reaction to ETH pullback by retracting over the week. In this article, we are going to briefly discuss the price action of BTC along with an overview of the altcoin market.
Bitcoin (BTC), the largest crypto by market cap, has been in downtrend for months with scattered relief rallies. The macro tailwinds have been a strong influencer for BTC price movements as crypto assets have been showing an increased correlation to tech stocks and an inverse correlation to dollar index.
Uncertainties around interest rate hike after release of inflated CPI inflation data and recent completion of the Merge upgrade have clearly impacted investor sentiment. Bitcoin has also been one of the worst impacted, having suffered a 12.8% weekly loss. However, it is currently trading near $19,300, with a 5% uptick in the last 24 hours.
BTC has been forming a series of bearish flags ever since its decline from $25,000 in mid-August. After trading for weeks below its descending trendline resistance, it made a fresh attempt for revival. BTC flipped the resistance line into support and rose to $22,000 before facing a steep correction. However, with the exception of a recent pullback to $18,000, the descending trendline continues to act as the support line for BTC.
BTC is currently trading above the .236 fib retracement, acting as its immediate support. Another stint upwards would require BTC to get through the $20,500 psychological resistance. The bears continue to pull BTC down and have been defending the 200-week simple moving average (SMA), another crucial resistance for BTC to overcome.
In case bulls are successful in pushing the price up towards $25,000, a trend change could be confirmed. Otherwise, bears pushing the price downwards may bring the previous lows of $17,600 into play and BTC may be in to test new yearly lows during this correction.
Among the top 20 crypto assets by market capitalization excluding BTC, ETH and dollar-pegged stablecoins, on a weekly timeframe, only XRP (XRP) managed to stay positive by registering 6.6%. Cardano (ADA) is up by 4% from the previous day as the Vasil hard fork is happening in two days which will enhance the scalability. Rest of the altcoins in the top 20 have all recurred weekly losses yet they have gained between 2-6% in the last 24 hours.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.