The cryptocurrency market continued its downtrend with the total market capitalization declining by 10% weekly to stand at $2.55 trillion as of 5pm today. The drop is attributed to the strong selloff of altcoins post the consolidation in Bitcoin (BTC). BTC slipped below the major support level at $60,000 and has been facing selling pressure ever since. In this article, we capture the price trends in the crypto market.
Bitcoin and Ethereum in downtrend though reversal likely soon
BTCâ€™s market dominance is currently at 42%. BTC has managed to drag most of the cryptocurrencies down with it. However, BTC enjoys strong support at $53,700 and $52,600 levels while the $60,000 range is now flipped to resistance. BTC is currently trading near $56,800 as of 5pm IST.
Ethereum (ETH) has been witnessing steadier drops when compared to Bitcoin. ETH is currently trading at a price of $4,100 but investors appear confident that a price rebound is imminent as ETH is nearing a major support level at $4,000.
The rise of Avalanche and Crypto.com
Avalanche (AVAX) has become the 10th largest cryptocurrency by market cap after pushing ahead of meme coins Dogecoin (DOGE) and Shiba Inu (SHIB). Defying the expectations of a current market sentiment, AVAX broke out to make new all-time highs post the news of renowned accounting firm Deloitteâ€™s decision to build its disaster relief platforms atop the AVAX blockchain platform. AVAX is trading near $128, up by 44% in the past 7 days.
Crypto.comâ€™s native token CRO has nearly quadrupled in value this month after a series of marketing initiatives sent the token to an all-time-high of $0.7984 on Sunday, making it the 13th largest cryptocurrency. This coincides with the announcement of a 20-year $700-million deal between Crypto.com and the Los Angelesâ€™ Staples Center (home to the L.A. Lakers basketball team) which will now be rebranded as the Crypto.com Arena.
Metaverse tokens shine
Ever since Facebook announced the rebranding of its parent company to Meta, the interest in Metaverse projects among the market participants has steadily increased. Metaverse tokens such as Sandbox (SAND) and Gala (GALA) made all-time highs after rallying 100% and 195% respectively in the last week. Virtual real estate project Decentraland (MANA) too had a breakout from its week-long consolidation to climb by 32%. Similarly, layer-2 protocol Immutable X (IMX) that supports trading of Ethereum-based NFTs gained 38%.
Outlook for Bitcoin
Bitcoin and most cryptocurrencies have been rejected from their major resistance levels with the current sentiment on the negative side. It is likely that BTC will retest $60,000 by the starting of December before it rallies to new all-time-highs. Altcoins will follow BTC price action till a breakout occurs.
Analyzing this market cycle, while few analysts claim that a blowoff top (last stage of a bull run) is likely to occur by the end of this year, most predict that the market cycle is likely to extend into at least mid 2022.
Disclaimer: This article was authored by Giottus Cryptocurrency 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.