11.8 C
November 27, 2022
Image default
Guide & Analysis

Bitcoin loses key support as bears continue to force the market down

More than $ 150 billion evaporated from the crypto market capitalization while Bitcoin was down $ 3,500 in one day. Ethereum, Binance Coin, Ripple and others are also deeply in the red.

Bitcoin failed to continue its recovery and fell about 4%, to less than $ 54,000. Most alternative currencies suffered even more, with total market capitalization losing $ 150 billion in one day. However, Dogecoin is the apparent exception with a 25% increase over $ 0.4.

Bitcoin drops to $ 54K

Like CryptoPotato reported over the weekend, the primary cryptocurrency experienced a massive drop in prices. The asset fell about $ 9,000 in hours, to a $ 51,500 low in 3 weeks.

Bitcoin recovered somewhat quickly and recovered more than $ 6,000 in the next 24 hours. That led to yesterday’s high, above $ 57,500. However, the situation was reversed once again, and the BTC headed south.

The cryptocurrency has lost more than $ 3,500 in value since then and currently struggles under $ 54,000. In addition, its market capitalization has fallen below the coveted $ 1 trillion again. It also means that BTC has lost a key support level – the DMA 50. Cryptocurrency analyst and commentator Lark Davis estimated that the average “pain” period is approximately 12 days.

Higher market volatility has also resulted in more pain for traders. You Bybt data show that sales in the last 24 hours are more than $ 1.3 billion.

Technical indicators suggest that the following support lines are situated at $ 51,440 and $ 50,000 if Bitcoin continues its free fall. If the price trajectory reversed, the asset would have to overcome resistance levels by $ 55,400, $ 56,280 and $ 58,355.

BTCUSD. Source: TradingView

Bleeding Altcoins and Dogecoin Rising

Most altcoins have imitated their leader’s performance in the past few days, with sharp drops on Sunday and promising recovery attempts yesterday. Today, however, they are worse than BTC.

Ethereum is down more than 7% on a 24-hour scale and has dropped to less than $ 2,100. Binance Coin (-6%) is below $ 500. Ripple (-16%), Cardano (-10%), Polkadot (-13%), Litecoin (-10%), Bitcoin Cash (-13%), Uniswap (-8%) and Chainlink (-12%) are also deeply in the red.

There is an apparent exception in the top ten that does not fall into the price drop category – Dogecoin. The popular meme currency shot up 20% in one day and 455% in a week, to $ 0.40. As a result, DOGE is now the fifth largest cryptocurrency in market value.

Cryptocurrency Market Overview. Source: coin360.com

Overview of the cryptocurrency market. Source: coin360.com

Among the smaller currencies, Helium leads the adverse trend with a drop of 22%. Nano (-20%), Kusama (-20%), Harmony (-17%), 0x (-17%), IOST (-17%), IOTA (-17%), OMG (-16%), Bitcoin Gold (-16%), Tezos (-15%) and Algorand (-15%) are just some of the other massive losers since yesterday.

Ultimately, the market capitalization of cryptocurrencies lost more than $ 150 billion in one day and fell well below $ 2 trillion.

Source: CryptoPotato

Related posts

BTC, ETH, XRP – To what extent will growth continue?

Shahrukh Ahmed

Bitcoin needs to exceed $40,000 for bulls to build trust

Shahrukh Ahmed

Price analysis: Cardano, Filecoin and Tron – June 1st

Shahrukh Ahmed

Leave a Comment