The cryptocurrency market flashed red today as Bitcoin (BTC) and other cryptocurrencies (altcoins) experienced strong resistance resulting in a heavy sell-off. BTC negated its two week gains by losing more than 13% on a weekly timeframe to trade at $59,200 as of 5pm IST. The altcoin market suffered a stronger drop as the top 50 cryptocurrencies traded at a loss today. In this article, we analyze the prevailing market sentiment and price actions of major cryptocurrencies as the total market cap drops below $2.6 trillion.
Bitcoin exhibits bearishness
BTC is taking a breather today after making new all-time highs in the last week. BTC has lost more than 9% in the last 24 hours after the bears applied selling pressures near the $66,000 region. However, BTC has bounced off strong support at $59,000 to prevent further drops. BTC is currently experiencing high volatility at the time of writing and that makes it harder to predict its short-term price action. All indicators for BTC point to a strong recovery rally in the upcoming week before possibly taking it beyond $70,000 this month.
Altcoins bleed as Ethereum loses 10%
Ethereum (ETH), the second-largest cryptocurrency, declined by more than 10% today. ETH, after managing to achieve a new all-time high near $4,800 in the recent past, succumbed to the bears today to slip to $4,250. However, ETH enjoys strong support near the $4,100 region which was put to test today. ETHâ€™s next move continues to be dependent on BTC recovering towards $64,000 in the immediate future.
Binance Coin (BNB) and Solana (SOL) were the only altcoins (excluding stablecoins) to register a single digit loss of 9% in the top 20 list by market cap. SOL has managed to regain the fifth spot from Cardano (ADA) and is trading near $220 after finding support at $214.
Tether (USDT), the dollar-pegged stablecoin, regained the fourth spot today with $73.7 billion market cap as it is speculated that traders funneled recent profits to USDT. This boost is also speculated to have come from the launch of USDT on Avalanche (AVAX) blockchain.
Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are currently moving closer to each other in market capitalization. DOGE and SHIB have bounced off on strong support levels at $0.22 and $0.0000451 though we continue to advise caution on lack of fundamentals for such coins.
Outlook for Bitcoin
While some of the market participants look at this recent price action with fear and uncertainty, BTC whales, large holders of Bitcoin, continued to view this as a buying opportunity as the third-largest BTC whale has reportedly increased holdings by 207 BTC.
According to data from analytics firm Glassnode, the long-term holders of Bitcoin have stopped net accumulating, meaning they have started to reallocate into other coins. With the hash rate of Bitcoin coming back to an all-time high and the market entering the final stage of the bull run, analysts predict that Bitcoin is just warming up for its next strong rally.
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.