The crypto market offers a negative sentiment today as top coins fell. Bitcoin, after peaking above $67,000, encountered resistance leading to a significant drop. Now trading below the $63,000 mark, the leading cryptocurrency’s slump is reverberating across the altcoin market, with significant declines observed in major tokens.
Bitcoin’s stumble to $62,950.61 amid rising US inflation figures and muted GDP growth have heightened fears of a dovish Federal Reserve, compounding the market’s woes. Altcoins such as Solana, XRP and Shiba Inu were not spared, each registering significant losses in a market grappling with uncertainty. As trading volumes fall and institutional sentiment cools, the cryptosphere faces a pivotal moment, with the market cap falling to $2.33 trillion and investors warily watching the Federal Reserve’s next move.
Bitcoin struggling around $64k, trading within a tight range
Bitcoin’s initial recovery showed promise with a surge past the $66,000 threshold, bolstered by geopolitical calm following Iran’s comments. However, the celebration was short-lived as bear sentiment took hold, leading to a decline of more than $3,000, setting Bitcoin to lows of $63,500. This downward movement was exacerbated by notable ETF outflows, which contributed to a drop in Bitcoin’s market cap to $1.260 trillion on CoinGecko and a dominance figure that now hovers around 50.7%.
Bitcoin’s price action is currently trapped below the 50-day and 100-day exponential moving averages (EMAs), typically 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 the immediate support and the 100-day EMA around $59,500 serving as key support to watch closely.
Adding to the potential volatility, Bitcoin’s trading volume has decreased, which could portend sudden price movements if market-moving 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 cause the price to test lower supports, possibly to the $50,000 range.
Ethereum is showing signs of potential recovery amid pressure
While the overall market is facing a downturn, Ethereum is showing potential for recovery. A “higher low” pattern has emerged on the charts, suggesting a possible shift in market sentiment from bearish to bullish. At the time of the analysis, ETH is trading just above the critical support level of $3100. After facing a sharp decline, analysts are closely observing the price behavior around this area.
The 20-day exponential moving average (EMA) has started to flatten, and the relative strength index (RSI) is hovering near the neutral 50 mark, indicating 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” compared to the previous dip. This pattern suggests that while sellers still influence market dynamics, their control is not as dominant as before. If buyers can sustain momentum and protect the support level, there is a possibility that Ethereum could test the resistance at $3,400.
A breach of this level could be a significant bullish indicator, potentially driving the price to the next resistance near the $3,500 threshold. However, if selling pressure increases and ETH breaks below the $3,100 support, this could signal a deeper bearish correction. The price may then seek lower support levels, which may include the psychological point of $3,000 or even further down, depending on market volatility and trading volumes.
Altcoins in the Red Zone
The altcoin market is reflecting a negative market sentiment today as it rolls off a major selloff, casting shadows on the crypto landscape. Leading altcoins are charting a sea of red, with Ethereum (ETH) teetering above the crucial $3,100 mark after a notable drop, raising eyebrows among investors closely watching its ability to maintain the psychological support level.
Ripple’s XRP, Chainlink (LINK) and Litecoin (LTC) also succumbed to the bearish mood, each recording losses reflecting the broader market downturn. Solana (SOL) was particularly hard hit, with a sharp 5% drop as it struggles to stay above the $140 level. Dogecoin (DOGE), Cardano (ADA) and Polkadot (DOT) were not spared, registering declines that undermined their weekly performance. Often seen as a market sentiment barometer for meme coins, Shiba Inu (SHIB) fell 3.12%.
In contrast, Tron (TRX) is bucking the trend with a modest 3% gain, showing resilience amid the market turmoil. Binance Coin (BNB) and UNUS SED LEO (LEO) also find themselves in the small enclave of tokens defying the downward trend, albeit with tempered gains suggesting a cautious approach by the investors.
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While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
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