Altcoins
Crypto Market Suffers Downward Spiral as Bitcoin Retreats and Altcoins Follow
The crypto market today is exhibiting negative sentiment as major coins slump. Bitcoin, after peaking above $67,000, faced resistance which resulted in a significant decline. Now trading below the $63,000 mark, the fall of the leading cryptocurrency is rippling through the altcoin market, with substantial declines seen for major tokens.
Bitcoin stumble to $62,950.61, amid sharply rising US inflation figures and moderate GDP growth, increased fears of a hawkish Federal Reserve, exacerbating the market’s woes. Altcoins like Solana, XRP, and Shiba Inu were not spared, each posting significant losses in a market grappling with uncertainty. As trading volumes decline and institutional sentiment cools, the crypto sphere faces a pivotal moment, with market cap falling to $2.33 trillion and investors cautiously watching the Federal Reserve’s next move .
Bitcoin struggles around $64,000 and trades in a tight range
Bitcoin’s initial rally showed promise with a rise past the $66,000 threshold, bolstered by geopolitical calm following Iran’s comments. However, the celebration was short-lived as bearish sentiment took hold, leading to a drop of over $3,000, putting Bitcoin at a low of $63,500. This downward move was compounded by notable ETF outflows, contributing to a decline in Bitcoin’s market cap to $1.260 trillion on CoinGecko and a dominance figure now hovering around 50.7%.
Bitcoin price action is currently stuck below the 50- and 100-day exponential moving averages (EMA), which is usually a prelude to a spike in volatility. The cryptocurrency is trading just below these two technical levels, with the 50-day EMA at around $64,000 serving as immediate support and the 100-day EMA around $59,500 serving as key support to watch from close.
In addition to potential volatility, Bitcoin trading volume is declining, which could portend sudden price movements if market-altering orders are placed. A decisive break above the 50-day EMA could push Bitcoin towards the $70,000 resistance. Conversely, a drop below the 100-day EMA could see the price test lower supports, potentially up to the $50,000 range.
Ethereum Shows Signs of Potential Recovery Despite Pressure
While the overall market faces a slowdown, Ethereum shows recovery potential. A “lower” trend appeared on the charts, suggesting a possible shift in market sentiment from bearish to bullish. At the time of analysis, ETH is trading just above the critical support level of $3,100. After facing a sharp decline, analysts are closely observing the price behavior in this area.
The 20-day exponential moving average (EMA) has started to flatten and the relative strength index (RSI) is approaching the neutral 50 mark, suggesting indecision in the market. Despite this, a potential bullish signal is emerging on the charts as ETH forms what appears to be a “higher low” from the previous decline. This trend suggests that although sellers continue to influence market dynamics, their control is no longer as dominant as it once was. If buyers manage to maintain their momentum and protect the support level, it is possible that Ethereum will test resistance at $3,400.
A breakout of this level could be an important bullish indicator, potentially propelling the price towards the next resistance near the $3,500 threshold. However, if the selling pressure intensifies and ETH breaks below the $3,100 support, it could signal a deeper bearish correction. The price could then look for lower support levels, which could include the psychological $3,000 mark or even lower, depending on market volatility and trading volumes.
Altcoins in the red zone
The altcoin market is reflecting negative market sentiment today as it recovers from a massive sell-off, casting shadows across the crypto landscape. Major altcoins are charting a sea of red, with Ethereum (ETH) surpassing the crucial $3,100 mark after a notable decline, raising eyebrows among investors closely monitoring its ability to maintain the psychological support level.
Ripple’s XRP, Chainlink (LINK), and Litecoin (LTC) also succumbed to the bearish mood, each registration losses that echo the broader market slowdown. Solana (SOL) has been hit particularly hard, dropping sharply by 5% as it struggles to stay afloat at the $140 level. Dogecoin (DOGE), Cardano (ADA), and Polkadot (DOT) were not spared, recording declines that hurt their weekly performance. Shiba Inu (SHIB), often considered a barometer of market sentiment for meme coins, fell 3.12%.
In contrast, Tron (TRX) bucked the trend with a modest 3% gain, demonstrating its resilience in the face of market turmoil. Binance Coin (BNB) and UNUS SED LEO (LEO) also find themselves in the small enclave of tokens defying the downtrend, albeit with moderate gains that suggest a cautious approach from investors.
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